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Insurance Stocks Shaken Amid Report Amazon Could Enter Home Insurance Market

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Insurance Stocks Shaken Amid Report Amazon Could Enter Home Insurance Market
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As it advances its infiltration of American homes, Amazon.com, Inc. (NASDAQ: AMZN) is considering a foray into home insurance, according to a Wednesday report from The Information.

Why It’s Important

The offering, in itself, introduces fresh competition for existing insurers. However, Amazon’s complementary product portfolio could make this alternative particularly threatening.

The Information suggested Amazon would use its Alexa-powered smart devices installed in client homes to monitor threats, collect regional data and calculate appropriate rates. This could give way to cheaper premiums and entice budget-conscious homeowners.

Progressive Corp (NYSE: PGR) fell 2.5 percent, Allstate Corp (NYSE: ALL) 2.4 percent, Chubb Ltd (NYSE: CB) 1.4 percent, Travelers Companies Inc (NYSE: TRV) 1.3 percent, Hanover Insurance Group Inc (NYSE: THG) 0.6 percent and American International Group Inc (NYSE: AIG) 0.8 percent on the news. All recovered shortly.

What’s Next

Amazon has not yet confirmed the report, and while company rumors do not always play out, as in the case of alleged pharmaceutical pursuits, Amazon has tendrils in diverse sectors and continues to make moves to expand its breadth of services.

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