FintechInsurTech

Nationwide partners with Amazon to offer Business Prime members insurance

Amazon and Nationwide announced Tuesday a partnership which will extend insurance offers to eligible Business Prime members in a pilot program set to run through December 2021.

The partnership will offer Nationwide’s Coverage Assistant tool to members, allowing them to take an online assessment, complete an online quote and then connect to agents to receive exclusive discounts.

“We know that customers can use our help to make good insurance purchase decisions to better understand the protection needs of their small businesses. That is why we’ve built Coverage Assistant. We know it can help customers work through their protection concerns,” Nationwide senior vice president of Corporate Development Angie Klett stated in a release.

The Coverage Assistant tool uses predictive modeling algorithms to create personalized coverage options and risk data that can quickly give users claim information. The service can be accessed through Business Prime member’s accounts, with the option to start the assessments on the Nationwide website.

On a roll, Amazon also began offering insurance to small- and medium-sized business customers in the UK last week, the Seattle-based company’s first venture into the country’s insurance sector.

That program, in partnership with Superscript, allows Business Prime customers to buy coverage including contents insurance, cyber insurance and professional indemnity insurance, according to Reuters.

The coverage will be underwritten by “major UK” insurers, and Business Prime members will be eligible to receive a 20% discount to current rates. It appears as if that discount will translate to Amazon’s newest program in the US.

This news comes after Amazon’s new mandate requiring third-party sellers to secure product liability coverage after reaching $10,000 in sales in one month, and new partnership with insurer March. That partnership launched Amazon’s latest digital insurance network, Amazon Insurance Accelerator, and will help small business sellers get affordable product liability coverage.

“Our customers are always looking for ways to maximize their business potential beyond procurement. We are excited that Nationwide will now offer Business Prime members help exploring insurance options,” Director of Business Prime for Amazon Business Worldwide says Todd Heimes stated in the release.

Insurers participating in the Accelerator include Chubb, Harborway Insurance underwritten by Spinnaker Insurance CompanyHiscoxLiberty Mutual Insurance, Markel, and Travelers. The policies are made available digitally by Bold Penguin and Simply Business, Inc.

This program, as well as the UK-focused venture, show a shift in focus from Amazon’s previous healthcare insurance partnership with Berkshire Hathaway and JPMorgan Chase. That concept, known as “The Haven” ultimately failed due to the insurance being tied to people’s work, and high out-of-pocket costs.

These programs, on the other hand, skip the individual employee’s health coverage and focus on consumer’s business insurance. Not only is small business insurance crucial, and often necessary, for business owners, but the market is now at a stage where consumer demand is high in markets served by Amazon.

Couple that with Amazon’s technology core, the rise of insurtech, and the shift towards SMB insurance makes a good bit of sense when it comes to ample coverage.

In other recent fintech news, Microsoft’s financial service cloud has an official launch date set at November 1. Unicorn ChargeBee also acquired RevLock to amplify automated revenue recognition.

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