A review of the current status of affinities and partnerships in UK financial services

Transcription

1 A review of the current status of affinities and partnerships in UK financial services Alan Leach 18th April

2 Agenda Generic distribution channel trends, 2007, 2008, 2009 and 2011 motor, household, pet and travel insurance life, accident and health insurance Leading affinity providers, 2013 motor, household and pet insurance life and private medical insurance, and credit cards commercial non-life insurance Comparisons with other European markets motor insurance in France, Germany, Italy, Poland, Spain and the UK household insurance in France, Germany, Italy, Poland, Spain and the UK 2

3 Generic distribution channel trends, 2005, 2007, 2009 and 2011 Finaccord analyses six generic distribution channels: - direct sales by insurance companies; - insurance aggregators and brokers; - financial partners (e.g. banks, building societies, credit card issuers etc.); - non-financial commercial partners (e.g. automotive, cashback websites, retailers, Saga, Virgin etc.); - not-for-profit affinity groups (e.g. charities, professional associations, sports organisations etc.); - worksite (i.e. sales via employees). Source: Finaccord Channel Metrics consumer research, 2005, 2007, 2009 and

4 Trends in motor, household, pet and travel insurance combined, 2005, 2007, 2009 and 2011 Direct sales Financial partners Not - for - profit affinity groups Insurance aggregators and brokers Non - financial commercial partners Worksite 100% 80% 60% 40% 20% 0% Source: Finaccord Channel Metrics consumer research, 2005, 2007, 2009 and

5 Trends in life, accident and health insurance combined, 2005, 2007, 2009 and 2011 Direct sales Financial partners Not - for - profit affinity groups Insurance aggregators and brokers Non - financial commercial partners Worksite 100% 80% 60% 40% 20% 0% Source: Finaccord Channel Metrics consumer research, 2005, 2007, 2009 and

6 Leading affinity providers, 2013 Finaccord's analysis is based on 'weighted share of partnerships' which takes into account: - the approximate number of customers, members or supporters of each distributor organisation; - the distribution share of each product to which the distributor organisation belongs. Source: Finaccord Affinity and Partnership Marketing in UK Financial Services Series,

7 Leading affinity providers in motor, household and pet insurance, 2013 BISL, 12.8% - key partners include Lloyds TSB, Post Office, RAC MOTOR INSURANCE (270 schemes) UK Insurance, 7.1% - key partners include Nectar, RBS, Sainsbury's Others, 80.1% UK Insurance, 12.7% - key partners include Nationwide B.S. RBS, Sainsbury's HOUSEHOLD INSURANCE (365 schemes) Aviva, 10.6% - key partners include ATL, HSBC, Leeds B.S. Others, 76.7% AXA,14.5% - key partners include esure, Nectar, RSPCA PET INSURANCE (53 schemes) BDML Connect,14.5% - key partners include ASDA, Debenhams, Unite Others, 71.0% Source: Finaccord Affinity and Partnership Marketing in UK Financial Services Series,

8 Leading affinity providers in life and private medical insurance, and credit cards, 2013 Direct Life & Pension Services, 15.8% - key partners include Admiral, Confused.com, MORETH>N LIFE INSURANCE (302 schemes) Aviva Life & Pensions, 13.9% - key partners include Barclays, NatWest, Tesco Others, 70.3% Others, 36.9% PRIVATE MEDICAL INSURANCE (184 schemes) AXA PPP, 43.4% - key partners include AA, Churchill, Saga Bupa, 19.7% - key partners are mainly professional / trade associations Others, 39.0% CREDIT CARDS (182 schemes) MBNA, 50.2% - key partners include Amazon, lastminute.com, Manchester United lovemoney.com, 10.8% - key partners include Comparethemarket.com, Gocompare.com, Yahoo! Source: Finaccord Affinity and Partnership Marketing in UK Financial Services Series,

9 Leading affinity providers in commercial non-life insurance, 2013 Towergate, 8.9% - Comparethemarket.com, Federation of Small Businesses, RAC RK Harrison, 4.0% - Country Land and Business Association, Engineering Employers Federation, National Housing Federation (1,248 schemes) Others, 87.1% Source: Finaccord Affinity and Partnership Marketing in UK Financial Services Series,

10 Comparisons with other European markets is the importance of affinity and partnership marketing in the UK unusual? - Motor insurance in France, Germany, Italy, Poland, Spain and the UK; - household insurance in France, Germany, Italy, Poland, Spain and the UK. Source: Finaccord Aggregation Metrics Series,

11 Distribution channels used for acquiring motor insurance, % 80% 60% 40% 20% All other affinity / partnership sources Automotive association Bank or similar institution Insurance broker Aggregator Direct from an insurance company / agent 0% France Germany Italy Poland Spain UK Source: Finaccord Aggregation Metrics Series,

12 Distribution channels used for acquiring household insurance, % 80% 60% 40% 20% All other affinity / partnership sources Bank or similar institution Insurance broker Aggregator Direct from an insurance company / agent 0% France Germany Italy Poland Spain UK Source: Finaccord Aggregation Metrics Series,

13 Any questions? 13

14 Finaccord is a leading market research, publishing and consulting company specialising in financial services. We provide our clients with insight with a particular focus on marketing and distribution strategies, including affinity and partnership marketing. Our areas of expertise include: affinity and partnership marketing; automotive financial services; bancassurance; commercial non-life insurance brokers; consumer intelligence; extended warranties and insurance for white, brown and grey goods; insurance and assistance linked to payment cards and bank accounts; mobile gadget and phone insurance; professional indemnity insurance; retailer financial services; trade credit insurance; and travel insurance and assistance. Our international network of consultants is able to deliver information quickly and accurately across a range of countries worldwide, basing research projects on robust data and knowledge. Contact us The Office Farringdon 24 Greville Street London, EC1N 8SS Phone: Fax: info@finaccord.com 14