OMAHA, Neb.–Credit unions and CUSOs have significantly expanded their insurance offerings to members, but a new analysis finds competition in that arena is also coming from some giant consumer brand fintechs, as well.
In a new report from Breeze, the company polled consumers on whether they would buy insurance from tech companies such as Amazon, Facebook (Meta), Google, or Zillow.
Among the key findings:
- 55% would buy a hypothetical insurance product from Amazon over traditional carriers.
- For Google, 46% would buy. Just 38% would buy an insurance product from Facebook (Meta).
- 66% would buy an auto insurance product from carmakers like Tesla, Honda, or Ford over traditional carriers.
- 61% would buy renters or homeowners insurance from real estate companies like Zillow or Trulia.
- 59% would buy health or life insurance from CVS or Walgreens.
Far Fetched? Or Not Far Off?
“Far-fetched or not far off? The insurance industry is undergoing digital transformation, and tech companies could be major players,” said Breeze in announcing the findings. “Amazon has already tried twice with health insurance: Haven & Amazon Care. Google subsidiary Verily recently launched a health insurance entity, and Google also owns Fitbit. Tesla has an auto insurance product in three states, and Musk said the auto insurance business could account for between 30% and 40% of the overall future value of the business. CVS Health recently merged with Aetna, while Walgreens Boot Alliance CEO Roz Brewer recently said the company is focusing on healthcare.”