To offer auto insurance to independent Quebec companies that deliver its packages, Amazon has taken steps with the Quebec government to convince it to make changes to the Automobile Insurance Act.
The American e-commerce giant — which represents 41% of purchases made on the Internet in the province — confirms that these steps have been taken in Duty. The Seattle-based company would like to clarify that it is not about offering auto insurance policies directly to individuals or businesses that sell their products on its platform.
Amazon wants to offer car insurance to its “delivery service partners”. These are the independent companies providing delivery from warehouses to consumers under a program launched by Amazon in 2018 that offers technology and logistical support to delivery companies.
Amazon recently joined the lobbyist registry for this purpose. He writes that he wants to take steps with the Quebec Ministry of Finance in order “to allow the subscription of automobile insurance on behalf of subcontractors [sic] “, suggesting that he would become an intermediary between delivery companies and insurers.
“Current law does not allow companies such as Amazon to offer auto insurance to independent contractors through a local third-party provider,” an Amazon Canada representative wrote in an email, declining to elaborate. the changes requested from the Quebec government.
Growing interest in insurance
Could this be a springboard to get a foothold in the insurance field? Although the company refrained from answering this question, its interest in the sector has been confirmed in recent years. In 2018, it established a partnership in France with the company Aviva: Amazon processes transactions for auto and home insurance contracts through its Amazon Pay payment service. In 2020, Jeff Bezos’ company expanded into India by partnering with Acko General to offer lower-cost car insurance to Amazon Prime members.
In September 2021, the company established another partnership, this time in the UK, with Superscript, which is a technology company specializing in insurance. This partnership allows members of Amazon’s Business Prime program to purchase cybersecurity and professional indemnity insurance from Superscript.
Amazon is not the only digital giant to take an interest in the sector. In 2020, the Alphabet group subsidiary Verily announced a partnership with the European insurer Swiss Re. The agreement concerns the offer to companies of policies covering health expenses and established on the basis of risk estimates based on the treatment of data.
In an email sent to Duty, the Chamber of Damage Insurance says it is “sensitive to the arrival of these players, like Amazon”. The organization, which reports to the Autorité des marchés financiers (AMF) and which oversees the activities of damage insurance representatives, indicates: “If consumers are ready to make purchases online, we remain vigilant and proactive ensure that they remain protected, regardless of the means used to purchase insurance products. »
The AMF is currently conducting consultations to assess the effects and implications of the Regulation on alternative distribution methods, which, in force since June 2019, allows, among other things, the sale of insurance on the Internet.
At present, insurance products can therefore be sold online without a representative certified with the AMF intervening in person. However, portal owners must be registered as firms with the AMF.