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Amazon Enters Insurance… for Itself


Matthew Josefowicz

There’s been plenty of speculation lately about whether Amazon would enter the insurance market. Would they be a distributor, bringing their legendary customer-obsession to creating an optimized buying experience? Would they disrupt the pharma benefits business with their supply-chain brilliance?

Well, it turns out what they have in mind first is disrupting the health insurance market by creating a tech-based, non-profit insurer for their own employees, along with Berkshire Hathaway and JP Morgan.

Let that sink in for a minute. Arguably the world’s most important entrepreneur, insurance investor, and banker are so frustrated with the health insurance business that they’re creating a non-profit alternative.

As we’ve been saying for the past few years, distributors are not the only intermediaries at risk. Any business that stands between risk-bearing customers and pools of capital are vulnerable to disintermediation if they don’t do their job well enough to justify their costs.

Insurers are already living in the future. By our count, this is year three. It’s only going to get more interesting from here.

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About Matthew Josefowicz

Matthew Josefowicz is the President and CEO of Novarica. He is an expert on insurance and financial services technology, with two decades of experience advising CIOs on IT strategy and solutions. He has written more than 100 reports on insurance technology issues and is the lead moderator of the Novarica Insurance Technology Research Council. Prior to launching Novarica in 2007, he founded and led the global insurance group at analyst firm Celent and worked at D. E. Shaw & Co., LP. He holds a BA magna cum laude in Classics from Brown University. He can be reached directly at mj@novarica.com.