Talk of retail giants like Amazon or Google selling insurance products is taking off, but its important to remember competitive threats to the benefit distribution system are nothing new. As John Sarich, VP, corporate strategy at VUE Software, pointed out last week at the Workplace Benefits Renaissance, weve been here before Allstate was once the tire brand at Sears.
While Amazon and Google have challenges to overcome before they might be perceived as threats (lack of experience in consumer products and not being highly profitable, respectively), there is one retailer to keep an eye on, Sarich told attendees at the Atlantic City show: Walmart. Selling a lot of Medicare Advantage and Part D plans, Walmart is more into funneling business to insurance companies at the moment, Sarich said. However, theyre someone to watch, he said. They could become a serious competitor.
