UK home insurers face imminent and huge competition from big technology companies after a recent poll found that more than a quarter of consumers would purchase an insurance policy from Google.
According to GlobalData’s 2022 UK Insurance Consumer Survey, 26% of consumers would buy home insurance from Google if it were to enter the insurance market, while 23% would purchase a policy from energy suppliers and 20% from Amazon.
The accelerated rise of digitalisation since the pandemic and increased use of smart home devices, means that technology companies pose a particular threat to insurers due their digital expertise and strong brand recognition to attract customers.
The survey revealed that Google is perceived as the most trustworthy new entrant into the insurance market and the entry of Amazon in insurance will also be a particular concern.
Facebook, on the other hand, is unlikely to be as successful as a result of negative press stories in recent years. Consumers are also unlikely to view WhatsApp as a viable provider of such a serious product.
The GlobalData researchers outlined how Google and Amazon are well-positioned to enter the home insurance market due to strong tie-ins to many homes across the UK, with Google Home and Amazon Echo, respectively.
Energy suppliers also have a presence within UK insurance, with British Gas being the leading supplier of home emergency insurance for stand-alone products in the country.
GlobalData survey found that if these companies did decide to offer end-to-end household products, a significant proportion of consumers would view them as viable providers, so the threat to incumbent insurers is there. M