Amazon Pay plans to expand insurance offerings in broader financial services push in India

Amazon Pay India is contemplating an expansion of its insurance offerings, CEO Vikas Bansal revealed on Friday, following the recent launch of health insurance. This strategic move is part of Amazon Pay's ambition to transition from a payments platform to a more comprehensive financial-services business, encompassing payments, credit, insurance, and savings and investment products, according to Bansal in an interview with Reuters.

When questioned about other insurance products Amazon Pay could introduce in the future, Bansal hinted that travel insurance might be among them.

Operating as a registered corporate agent for insurance, Amazon Pay has already been distributing vehicle insurance and has recently ventured into health insurance in partnership with Indian non-life insurer, HDFC ERGO. The company aims to further broaden its insurance distribution business.

In the context of India's rapidly evolving financial landscape, health insurance is seen as the next frontier for Amazon Pay. Speaking about health insurance, Bansal remarked, "Health is our next frontier." He emphasized that medical care costs have been on the rise, and a relatively small percentage of Indians presently have personal health insurance.

The non-life or general insurance industry in India is expected to witness a robust compound annual growth rate of 10%, expanding from $43.4 billion in 2026 to over $62 billion by 2030, in terms of gross written premium, as per GlobalData. Amazon holds a minority stake in the Indian insurance firm, Acko, with Acko being one of the insurers available via Amazon Pay. Bansal expressed Amazon's openness to further investments in the insurance sector.

Last year, Amazon acquired Bengaluru-based non-bank lender Axio, granting it access to an Indian direct lending business through an undisclosed amount payment.