A Datamonitor Brief timely The Future Role of Brandassurers in UK General Insurance A Brand New Insurance Channel Reacting to the latest news breaking in your industry focused Publication Date: Jun-04 Product Code: There is little doubt that brandassurers have dramatically altered the makeup of the general insurance distribution landscape since they arrived on the scene in the late 1990s. This brief considers the impact brandassurers have had and looks ahead to the strategies they are likely to pursue to cement their position in the general insurance market. Hundreds of hours of analyst time distilled into a few pages primary research Tesco, Sainsbury's, Marks & Spencer, Asda and Kwik-Fit have emerged as the leading lights in the brandassurance arena. Each has exploited their large customer footfall and marketing expertise to launch appealing propositions and generate new lines of revenue. The partnership arrangements pursued by brandassurers have differed widely, with some retailers dipping their toe in the water and others committing themselves more fully in terms of resource and financial outlay. Brandassurers face a number of crucial challenges to maintain their competitive strength and uniqueness of proposition but are nonetheless poised to continue grabbing market share. Unique survey data and interview results thought-provoking For details of all Datamonitor briefs, go to: www.datamonitor.com/financial services Fresh opinions and out-of-the-box thinking
timely Reacting to the latest news breaking in your industry Scope and coverage Examines the impact of UK retailers that have begun offering own-brand general insurance products to the public Rewiews the opinions provided by leading industry executives on the state of the market and future prospects for brandassurers Assesses the insurance partnership strategies brandassurers have adopted according to their level of commitment Forecasts the market share of brandassurers to 2008 using analysis of MFS and ABI data Key findings and highlights Brandassurers have made significant strides forwards since their arrival on the general insurance scene in the late 1990s. Their solid reputations and loyal customer bases have helped them to encroach on the market share of more traditional insurance competitors. Customers value them mostly because they believe they can obtain a cheaper quote. Tesco has the highest level of consumer awareness and also has the highest market share in motor and household insurance of all brandassurers. Its formation of joint venture, an approach mirrored by Sainsbury's, is the most sophisticated partnership arrangement in the market. The brandassurance market is poised for continued growth. Datamonitor's forecasts show brandassurers' market share will increase by an average 1.4 percentage points per year to 2008 Reasons to purchase Learn how brandassurers have successfully moved into the general insurance market and which strategies have yielded the best results Understand the strengths and weaknesses of brandassurers' models, together with the factors that may ignite or impede growth in the future Identify the market share growth of the brandassurance sector and position your company to respond to these challenges accordingly Contact us...
focused Table of contents Hundreds of hours of analyst time distilled into a few pages INTRODUCTION What is this report about? Who is the target reader? How to use this report MARKET CONTEXT Introduction Current role of brandassurers - Competitor identification - Kwik-Fit - Sainsbury's - Tesco - Marks & Spencer - Asda - Other competitors - Insurance distribution Successful brandassurance competitors - Awareness of brandassurers' insurance offerings - Awareness of brandassurers' insurance offerings declines with age - Consumers are most aware of Tesco's insurance products - Consumers earning 15,500 to 24,999 have the highest awareness of brandassurers - Competitors' share of the brandassurance market - Tesco and Sainsbury's have had contrasting fortunes in the household insurance market - Brandassurers are increasing in prominence compared with established household insurance brands - Tesco has accelerated ahead in the motor insurance market - Brandassurers are making strong advances in the motor insurance market Reasons for brandassurance success - Cheaper price is brandassurers' main advantage over their mainstream competitors BRANDASSURANCE STRATEGIES Introduction Partnership strategies - Underwriting partners - Development of brandassurance models Loose alliance with several insurance partners - Case profile: Marks & Spencer - Motor insurance marks a departure from Marks & Spencer's usual strategy - Case profile: Kwik-Fit Financial Services (KFFS) Partnership with one predominant insurer - Case profile: Asda - Wal-Mart is using Asda as its global financial services guinea pig Formation of joint venture - Financial services may appear to be a strategic shift for retailers, but its contribution to overall group performance remains very small - Case profile: Tesco Personal Finance - Case profile: Sainsbury's Bank - Implications of entering a joint venture - Implications for a retailer's insurance offering Development of integrated insurance company FUTURE ROLE OF BRANDASSURERS Introduction Actions for success - Exploiting customer footfall - Maintaining low acquisition costs - Capitalizing on brand loyalty - Harnessing existing retail expertise Barriers to success - Impact of FSA regulation - Financial sophistication of consumers - Customer churn Market share forecasts APPENDIX Supplementary data Definitions Research methodology - MORI data Further readings - Current titles - Future titles Datamonitor's custom research capabilities SPP writing team Contact us...
primary research Unique survey data and interview results TABLES Table 2: Advertising spend of leading brandassurers on insurance offerings by medium, 2003 Table 3: Brandassurer underwriters, May 2004 Table 4: Comparison of performance of Sainsbury's Bank and Tesco Personal Finance, 1999-2003 Table 5: Forecast market share of brandassurers by selected Datamonitor interviewees Table 6: Forecast personal lines insurance market share of brandassurers, 1999-2008f Table 7: Spontaneous awareness of brandassurers, by age, 2003 Table 8: Spontaneous awareness of brandassurers, by income, 2003 Table 9: Market share of brandassurers in household insurance market relative to Royal & SunAlliance, 1999-2003 Table 10: Market share of brandassurers in motor insurance market relative to Churchill Insurance, 1999-2003 Table 11: Reasons for selecting current insurance provider, 2003 Figure 12: Figure 13: Figure 14: Figure 15: Figure 16: Figure 17: Figure 18: Kwik-Fit has opted to partner with multiple providers to offer insurance to its customers Asda offers the majority of its insurance products through Norwich Union Tesco and Sainsbury's did not achieve profitability in their finance arms until 2000 Tesco provides insurance through UKI Partnerships, the affinity arm of joint venture partner Royal Bank of Scotland Sainsbury's operates in conjunction with HBOS for personal lines insurance, although the health and pet schemes fall outside the HBOS umbrella Growth in brandassurers' market share will continue strongly but decelerate towards the end of the decade Datamonitor's core consulting capabilities FIGURES Figure 1: Figure 2: Figure 3: Figure 4: Figure 5: Figure 6: Figure 7: Figure 8: Figure 9: Figure 10: Figure 11: Timeline of brandassurers' launch of general insurance GWP growth across all lines helps affinity groups and retailers to make further inroads in 2002 Tesco has the highest spontaneous awareness among consumers Consumers earning 15,500-24,999 have the highest awareness of brandassurers Tesco has been growing in prominence in the household market, while Sainsbury's influence is on the wane Tesco is the only brandassurer to have made any great advances in the household market between 1999 and 2003 Tesco has challenged Kwik-Fit's pre-eminence in the motor insurance market The market share of brandassurers in the motor market has been increasing over time Brandassurance customers are far more influenced by price than the average insurance consumer Retailers have a number of options for their level of involvement in the provision of general insurance Marks & Spencer has partnered with a wide range of insurance providers Contact us...
thought-provoking Datamonitor: Your total information solution Fresh opinions and out-of-the-box thinking Datamonitor is a premium business information company helping 5,000 of the world's leading companies across the Automotive, Consumer Markets, Energy, Financial Services, Healthcare and Technology sectors. Our products and services are specifically designed to support our clients key business processes - from corporate strategy to competitive intelligence. We provide an independent and trustworthy source of data, analysis and forecasts to improve these processes and ultimately, to help grow your business. Corporate Strategy & Business Planning Product Development & Commercialization Targeting & Influencing the Market Market & Competitive Intelligence Quality Data Expert Analysis Future Forecasts Make more effective strategic and business decisions Accelerate delivery of commercial success Assess and influence your commercial and market environment Maintain or obtain critical competitive advantage HELPING TO GROW YOUR BUSINESS No-one speaks louder than our clients Abbey National ABN AMRO AIB Bank American Express Aviva AXA Bank of Ireland Barclays Bank Berlinerische Lebensversicherung BNP Paribas BUPA Capital One Citibank Commerzbank AG Co-Operative Bank Crédit Agricole Crédit Lyonnais Credit Suisse Deutsche Bank Diners Club International Dresdner Bank Europay Fidelity Investment Services Fortis GE Capital HBOS HFC Hiscox Insurance HSBC HypoVereinsbank ING Interpay Invesco Legal & General Lloyds of London Lloyds TSB M&G Group MBNA National Australia Group (UK) Ltd Nationwide Building Society Nordea Prudential Royal & SunAlliance Royal Bank of Scotland Scottish Widows Skandia International Standard Life Swiss Re UK UBS AG Visa Zurich 89% of our clients use Datamonitor research to develop competitive intelligence Source: Datamonitor Customer Research
primary research Place your order now... Hundreds of hours of analyst time distilled into a few pages Fax back to +44 20 7675 7016 (from Europe) or 212 686 2626 (from the US) I would like to order: Product title Product code Price / / $ / * * Please refer to our website www.datamonitor.com for up-to-date prices Complete your details: Name Job Title Department Company Address State/Province Post Code/ZIP Country Email Tel Fax Sign below to confirm your order: Complete payment details: Please indicate your preferred currency option: UK US$ Euro Yen I enclose a check payable to Datamonitor plc for $ (+ postage $30 UK/$60 rest of world) Please invoice my company for /$/ Please debit my credit/charge card / (+ postage $30 UK/$60 rest of world) Amex Visa Diners Mastercard Card No Expiry Date / Cardholder Signature Cardholder address Please supply purchase order number here if required by your accounts department: EU companies (except UK) must supply: VAT / BTW / MOMS / MWST / IVA / FPA number: Datamonitor products and services are supplied under Datamonitor s standard terms and conditions, copies of which are available on request. Payment must be received within 28 days of receipt of invoice. I do not want to receive future mailings from Datamonitor and its related companies. Occasionally, our client list is made available to other companies for carefully selected mailings. Please check here if you do not wish to receive such mailings. WEB Contact us to find out more about our products and services