SEATTLE–Credit unions have frequently expressed concerns that Amazon would fully enter financial services–but might the company start nibbling away at ancillary services first?
The company is reportedly in discussions about offering home insurance to consumers in conjunction with its connected home devices, such as Alexa and Echo.
“The idea is that robots and other smart devices can be used to monitor for threats such as fires and burglaries, making it possible to offer cheaper premiums,” according to a report by The Information, which cited an anonymous source.
The report said Amazon has not made any official plans at this point, but the company does see insurance as another channel in which it can sell home services. It is exploring other ways Alexa and Echo can be used to power devices such as smart locks, light bulbs.
While Amazon did not make a formal announcement, the report was sufficient to drive down the stock prices of a number of home insurers.
Amazon has recently announced it is opening "experience showrooms" in Lennar homes that features its connected devices.