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Old 04-24-2018, 01:20 PM
The_Polymath The_Polymath is offline
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Default Amazon is now in European Insurance (P&C for now)

They are offering Amazon protect, which is essentially a warranty on their products.

Still small potatoes for insurance purposes, but with their ability to scale up and their cross-selling acumen, I do potentially see them branching off into other areas like home & renters.

If I were a p&c personal lines carrier in Europe I would be concerned.
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Old 04-24-2018, 02:28 PM
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Originally Posted by The_Polymath View Post
They are offering Amazon protect, which is essentially a warranty on their products.

Still small potatoes for insurance purposes, but with their ability to scale up and their cross-selling acumen, I do potentially see them branching off into other areas like home & renters.

If I were a p&c personal lines carrier in Europe I would be concerned.
Would they want to get into anything beyond warranty? Where is the benefit of moving into home & renters, unless it's in a supplemental contents sort of coverage?

I could see renters being interesting to them, but I don't know that there's enough premium out there to make the expense worth it.
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Old 04-27-2018, 08:41 AM
jerrytuttle jerrytuttle is offline
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Default Is a warranty the same as insurance?

In NY, if the company has a relationship to the product that affects the risk of loss, then the contract is a warranty, but otherwise the contract is insurance and will be regulated as insurance.

https://www.dfs.ny.gov/insurance/ogco2008/rg080208.htm
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Old 04-27-2018, 09:08 AM
Westley Westley is offline
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Where is the benefit of moving into home & renters
Profit, greater connection to the wallets and homes of their customers, continued expansion into new markets?

But not sure Amazon cares about any of those, as it's not really connected to their core business of selling books.
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Old 04-27-2018, 10:19 AM
IANAE IANAE is offline
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Not too close to the numbers these days, but consumer products 'warranty' biz can be (and generally is) a lucrative cash cow for those offering and backing the 'warranty'.

May or may not be insurance, may or may not be backed by an insurance company, but almost always paid for up-front - in cash or financed (!!) if permissible - with very healthy commissions to everyone in the distribution chain.

If anything, I'm amazed this is AMZN's first foray into this line.
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Old 04-27-2018, 11:08 AM
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Profit, greater connection to the wallets and homes of their customers, continued expansion into new markets?

But not sure Amazon cares about any of those, as it's not really connected to their core business of selling books.
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Old 04-27-2018, 11:54 AM
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Quote:
core business of selling books, medicine and groceries.
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Old 04-27-2018, 12:35 PM
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Old 04-27-2018, 01:19 PM
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Amazon can just turn into the next Berkshire... they have enough capital to sustain short term blips the same way geico and gen re can.

I wouldn't be surprised if amazon/google turn into a conglomerates in 10 years. At the same time though, I think the US government sees the danger in this and will do something about it... or i hope so atelast.

Or maybe they'll just buy out lemonade.
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Old 04-28-2018, 01:47 PM
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The market that Amazon is well situated for . . . and offers the best return of profit for the investment/risk . . . is to become a broker for insurance coverage.


And then become a broker for the claims adjustment process . . .



And then become a "craigs list" vendor for legal representation for insurance claims . . .
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