Amazon’s India business said on Thursday it has begun offering auto insurance to cover two and four-wheelers in the country, marking the American giant’s first foray into this financial services category globally.
The e-commerce giant said it had inked a deal with Mumbai-headquartered Acko General Insurance to offer customers car and motor-bike insurance. Amazon is also an investor in Acko.
Mahendra Nerurkar, chief executive and director of Amazon Pay in India, said on Wednesday evening at a fintech conference that the company was planning to expand its insurance service to offer coverage on health, flight and cabs.
The auto insurance is available to customers through Amazon Pay on the e-commerce giant’s website and app. The company said buying insurance will take less than two minutes and requires no paperwork.
"This coupled with services like hassle-free claims with zero paperwork, one-hour pick-up, 3-day assured claim servicing and 1 year repair warranty - in select cities, as well as an option for instant cash settlements for low value claims, making it beneficial for customers," it added.
Customers who have subscribed to Amazon Prime, the company’s loyalty program that costs about $13 a year in India, will be able to access additional benefits and discounts, Amazon said without identifying those benefits.
India’s insurance market is the latest financial services sector that has attracted the attention of local and international tech giants. Paytm, India’s most valued startup, and its chief executive Vijay Shekhar Sharma, acquired insurance firm Raheja QBE for a sum of $76 million earlier this month.
In India, only a fraction of the nation’s 1.3 billion people currently have access to insurance, and some analysts say that digital firms could prove crucial in bringing these services to the masses.
According to rating agency ICRA, insurance products had reached less than 3% of the population as of 2017. An average Indian makes about $2,100 a year, according to the World Bank. Of those Indians who had purchased an insurance product, they were spending less than $50 on it in 2017, ICRA estimated.
“Our vision is to make Amazon Pay the most trusted, convenient and rewarding way to pay for our customers. Delighted by this experience, there has been a growing demand for more services. In line with this need, we are excited to launch an auto insurance product that is affordable, convenient, and provides a seamless claims experience,” said Vikas Bansal, director and head of financial services at Amazon Pay in India, in a statement.
Though Amazon Pay is available in several markets, the payments service's offering in India remains unmatched. The company has used the world's second largest internet market, where it has invested more than $6.5 billion to date, as a testbed to explore various unique opportunities. The Amazon Pay app in India, for instance, also sells movie and flight tickets.