Insurance stocks fell earlier this week after a report surfaced that Amazon is considering getting into the home insurance business. Already a presence in American homes through its plethora of gadgets including tablets, smart locks and Alexa devices, Amazon could use this as a way to offer low premiums for homeowner's insurance. The rumor was first reported by The Information, a tech news site.
Smart devices sold by and through the online retailer can already be used to monitor threats such as fires and burglaries, which could be an advantageous way to offer less expensive premiums. Allegedly, Amazon would offer insurance in conjunction with smart home devices. With San Diego County's propensity for wild fires, as seen in the current Fallbrook vegetation fire, homeowner's insurance premiums can be quite costly.
As of Wednesday, Amazon had not commented on the report. Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.0 percent and the 5-year ARM is averaging 4.0 percent.
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