Webinar: How usage based products can open up insurance to everyone. Sign up here!
Amazon partnered with the insurtech NEXT to offer its coverage to sellers. NEXT is currently the only U.S.-based carrier offering policies directly via Amazon Insurance Accelerator.
“NEXT’s digital insurance products are easily embedded into the software systems that small businesses regularly use to run their companies,” says Guy Goldstein, CEO of NEXT, in a statement. “Today, through Amazon Insurance Accelerator, sellers can seamlessly purchase NEXT’s affordable and customized insurance coverage for a simple, frictionless experience. We are excited to partner with Amazon to support small businesses in their quest to thrive.”
Another partner in the Accelerator is Marsh. Through technology provided by Bold Penguin, commercial insurance exchange, and Simply Business, the insurance broker’s clients can also get access to the Amazon seller market through this offering.
Amazon will require third-party sellers to secure product liability coverage after reaching $10,000 in sales in one month on Amazon. Through the Amazon Insurance Accelerator, third-party sellers on Amazon can obtain quotes and purchase a policy that meets their needs and Amazon’s requirements. Sellers will be referred to the online application of participating insurers directly from their account. In 10 minutes or less, sellers can get a customized quote and bind a policy.
Anita Sathe, global Bluestream and U.S. affinity leader at Marsh said: “Product liability insurance allows Amazon sellers to focus on scaling their businesses, knowing they are protected should one of their products accidentally cause bodily harm or property damage. However, finding the right insurance policy at the right price — especially for new business startups — can be a daunting task.”
A group of the insurance companies for small business and secured digital insurance distribution providers selected by Marsh for its component included Chubb, Harborway Insurance underwritten by Spinnaker Insurance Company, Hiscox, Liberty Mutual Insurance, Markel, and Travelers.
“Amazon Insurance Accelerator makes it easy for sellers to obtain competitive quotes from reputable insurers that will stand behind their business and give them peace of mind. It is very important for large companies to take proactive roles in better solutions for the needs of the client.” Sathe said.
With embedded insurance becoming popular for businesses, larger companies are required to carry insurance, but aren’t given an effective way to do it. According to Sathe, “Amazon is accelerating the time by offering solutions, at a better deal than brokers.”
“We’ve seen rapid growth in the e-commerce industry over the last several years, and we’re looking forward to extending our digital proposition to Amazon’s third-party sellers,” said David Summers, Group CEO of Simply Business.
Source: Digital Insurance
