Amazon is the latest big company to offer in-house insurance and employee health benefits, essentially becoming an insurer for its sizeable workforce. Amazon Care will include virtual and actual care via apps, chat facilities, remote videos, and follow-up visits. Initially it will only be available to employees based in Seattle, but if the scheme proves successful it will likely be rolled out further.
This move is part of an emerging trend. Apple launched its own version called AC Wellness in 2018, while Intel, Facebook, and J. P. Morgan have all launched similar programmes. Amazon Care appears to be the most comprehensive so far, offering a range of medical services and ways to communicate with medical professionals.
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This approach makes sense for large corporations, which traditionally outsource these services to profit-making insurers. Moving them in-house provides companies with more control over what they offer employees, allowing them to tailor packages specifically to their workforce’s needs.
GlobalData’s UK SME Adoption of Employee Benefits 2018 report found that there were clear differences in what employees from different generations want. Generally speaking, GlobalData’s 2018 UK Insurance Consumer Survey and 2018 UK SME Insurance Survey found that members of Generation Y and Z are more driven by bonuses and work/life balance. Meanwhile, older employees are more reliant on a stronger base salary – likely due to having more financial commitments such as a mortgage.
Tech companies such as Amazon – which often employ younger (or at least digitally savvy) employees – are ideally placed to design products that address these needs. By focusing on what their employees value most, the likes of Amazon will be able to attract and retain individuals in the competitive tech space. It should also allow them to reduce costs by cutting out the middle man. The fact that so many large corporations are experimenting with this approach suggests it is an emerging theme – and one that must be concerning for health insurers and employee benefit providers.
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