Amazon.com has entered into talks with E.U. insurance companies to step into a new market.
The e-commerce giant is thinking of creating a U.K. health plan price comparison website.
Amazon Takes New Steps
Amazon.com Inc. has been talking to health insurance companies in the E.U., according to reports from both Fortune and Reuters. The purpose is regarding the creation of a health insurance price comparison website in the United Kingdom. This would represent steps into an entirely new market for the U.S. e-commerce giant.
Neither report indicated whether or not the website would also sell insurance policies and Amazon declined the opportunity to comment. At the moment, it appears as though Amazon is taking an initial look at the potential of an idea. As of yet, there isn’t any evidence of immediate plans to launch the site.
Highly Competitive U.K. Market
Amazon has talked to some of the leading insurance firms in Europe in order to gauge their interest in taking part in a price-comparison website in the U.K., said the media reports. That would bring the company into the exceptionally highly competitive U.K. insurance comparison marketplace. At the moment, there are already two major providers leading that market space: comparethemarket.com and GoCompare.com Group Plc.
Even though Amazon has not made any official announcements on the subject and there aren’t any imminent launch plans for the site, GoCompare.com shares fell as much as 10.2 percent upon the initial media report publications. Since that time, it has continued with a steady, steep decline.
Similar Services in Place
Amazon has been poking around in the insurance space over the last while and already has a price-comparison service on its own website. This suggests that the company may be prepared and easily equipped with the ability to step into the health insurance price-comparison space in the U.K.
The company offers an Amazon Protect service which offers customers accident insurance protection on their consumer goods. Moreover, the main marketplace site offers extensive price-comparison capabilities for the products sold there. That said, creating a separate insurance policy offering would represent something new for the U.S. based company.