Amazon Eyes Home Insurance Market

Reports surfaced that Amazon is considering getting into the home insurance game, sending shares of some insurance companies down briefly on Wednesday (June 6).

According to The Information, the eCommerce giant is considering offering home insurance in collaboration with its development work on robots and other connected devices for the home. Robots and other smart devices could be used to monitor for threats such as fires and burglaries, making it possible to offer cheaper premiums.

Amazon did not have an immediate comment about the report, but the news sent shares of stocks like AIG and Chubb falling slightly. However, they quickly rebounded.

This wouldn’t be Amazon’s first foray into the home market. Last month, the company launched home security services for Alexa in select areas. The service starts at $575, which includes professional installation. There are no monthly fees.

Most packages include an Echo Dot smart speaker to control everything using voice commands, as well as Alexa-friendly gadgets like the Wink Hub 2 and the Ring Video Doorbell.

Amazon acquired Ring earlier this year for $1 billion to expand its reach in the home security market. A Ring spokesperson explained that with the acquisition, the company will “be able to achieve even more by partnering with an inventive, customer-centric company like Amazon. We look forward to being a part of the Amazon team as we work toward our vision for safer neighborhoods.”

In addition, Amazon also announced the opening of Amazon Experience Centers within some Lennar model homes across the United States, in which it is showcasing Alexa-enabled smart home functions.

In these Alexa-enabled smart homes, customers can ask the voice assistant to control the television, lights, thermostat, shades and more. The model homes show consumers how they can use Alexa in their everyday lives and can experience how they can reorder household items with the Amazon Dash Button, listen or watch Prime content with Fire TV or schedule on-demand home services through Amazon Home Services.