Affinity and Partnership Marketing in UK Financial Services Series Prospectus June 2015 Finaccord Ltd., 2015 Web: www.finaccord.com. E-mail: info@finaccord.com 1
Prospectus contents Page Which titles have been published? What is the research? What methodology has been used? How does the sample break down? What is the difference between the unweighted and weighted analyses of partnerships? What is the structure of the reports? What are the key features of the research? How can the research be used? How can the Partner BASE be used? Who can use the research? What are some of the key findings? What is the cost and format? How can the research be purchased? 3 4 5 6 7-8 9 10 11 12 13 14-16 17 18 Finaccord Ltd., 2015 Web: www.finaccord.com. E-mail: info@finaccord.com 2
Which titles have been published? Finaccord s Affinity and Partnership Marketing in UK Financial Services series extends to the following titles: Affinity and Partnership Marketing in UK Accident and Health Insurance Affinity and Partnership Marketing in UK Household and Home Emergency Insurance Affinity and Partnership Marketing in UK Life Insurance, Retirement Products and Financial Advice Affinity and Partnership Marketing in UK Motor and Breakdown Recovery Insurance Affinity and Partnership Marketing in UK Travel Insurance Separate tables of contents are available for each of these studies on the relevant pages of the Fin accord website with this single marketing prospectus covering the entire series. In addition, a further report titled Affinity and Partnership Marketing in UK Commercial Non-Life Insurance is also available, for which a separate report prospectus and table of contents can be obtained, as is a distinct series titled UK Niche Insurance: Market Dynamics, Affinities and Partnerships, again accompanied by its own series prospectus and tables of contents. Finaccord Ltd., 2015 Web: www.finaccord.com. E-mail: info@finaccord.com 3
What is the research? The Affinity and Partnership Marketing in UK Financial Services series provides unique insights and detailed intelligence into developments and opportunities in affinity and partnership marketing in insurance and other financial services in the following broad and specific partner categories: not-for-profit affinity partners - charities; housing associations; lifestyle organisations; professional associations; sports organisations; trade associations; trade unions; and universities; financial institutions - banks; building societies; credit and charge cards; credit unions; friendly societies; insurers (tied / multi-tied intermediaries); insurers (underwriters); online aggregators and brokers; packaged accounts; and specialised lenders; commercial partners - airlines; automotive associations; automotive manufacturers; coalition loyalty schemes and frequent flyer programs; estate agency and property service firms; football and rugby clubs; internet, media and telecoms entities; online price comparison providers; retailers; travel companies; and utilities and gas boiler manufacturers. Finaccord Ltd., 2015 Web: www.finaccord.com. E-mail: info@finaccord.com 4
What methodology has been used? The survey of 2,555 actual and potential affinity partners was carried out between February and May 2015 and covers the vast majority of viable affinity distributors in the UK consumer financial services market. The research embraces the following information: for each affinity group or partner considered, whether it offers the insurance or other financial service in question; if provided, whether the product or service is offered through one or more partnerships with external companies, by means of a sister or captive company, or on an in-house basis; if provided through one or more partnerships, the identity of the partner(s) and the classification of the partnership(s). Finaccord Ltd., 2015 Web: www.finaccord.com. E-mail: info@finaccord.com 5
How does the sample break down? Commercial partners, 690 - of which 220 travel companies, 82 internet, media and telecoms entities, 80 retailers, 76 football and rugby clubs, 47 automotive manufacturers, 65 estate agency and property services firms, 55 utilities and gas boiler manufacturers, 20 online price comparison providers, 26 airlines, ten coalition loyalty schemes and frequent flyer programs and nine automotive associations. Not-for-profit affinity partners, 1,232 - of which 702 trade associations, 144 professional associations, 87 trade unions, 110 charities, 56 sports organisations, 50 housing associations, 45 universities and 38 lifestyle organisations. 633 financial partners of which 199 individual credit and charge cards, 149 insurers (splitting between 83 underwriters and 66 tied or multi-tied intermediaries), 57 specialised lenders, 54 banks, 49 building societies, 41 online aggregators and brokers, 35 credit unions, 25 friendly societies and 24 packaged accounts. Finaccord Ltd., 2015 Web: www.finaccord.com. E-mail: info@finaccord.com 6
What is the difference between the unweighted and weighted analyses of partnerships? Finaccord's new series of studies on this subject incorporates a new analysis whereby it identifies not only the financial product providers with the most partnerships (overall, and within each category), but also computes 'weighted provider shares of partnerships' in order to highlight the providers that are likely to hold the most valuable relationships given the characteristics of their partners. Within affinity and partner categories (e.g. for banks in isolation), it does this by weighting partnerships in accordance with the UK traffic ranking for each organisation's website. Then, across all distributor categories combined, it also takes into account the approximate distribution share of the financial service in question of the category to which the organisations belong, as measured by Finaccord's Channel Metrics consumer research, and additionally incorporates the number of organisations in the category that offer the financial service in question so that the distribution share is divided across the number of active organisations. (The precise formulae and workings used can be obtained from Fin accord if needed.) An example of the impact of this approach, illustrating the differences that can emerge between the unweighted and weighted analyses of partnerships, is presented on the following slide. Finaccord Ltd., 2015 Web: www.finaccord.com. E-mail: info@finaccord.com 7
What is the difference between the unweighted and weighted analyses of partnerships? (cont.) Building societies offering household insurance Unweighted provider share of partnerships Weighted provider share of partnerships UK Insurance, 2.6% Tower gate Underwriting, 2.6% Thomas, Carroll P.C., 2.6% Ages, 5.1% Aviva, 7.7% Arthur J Gallagher, 3.7% RSA, 5.2% other, 1.9% RSA, 46.2% Legal & General, 10.3% Arthur J Gallagher, 23.1% Source: Fin accord Partner BASE UK Insurance dominates the weighted analysis because of its partnership with the Nationwide (and its subsidiary brands), by far the largest building society group in the UK. UK Insurance, 89.2% Finaccord Ltd., 2015 Web: www.finaccord.com. E-mail: info@finaccord.com 8
What is the structure of the reports? 0. Executive Summary: providing a concise evaluation of the principal findings of the report. 1. Introduction: offering rationale for the report, a detailed description of the methodology and associated definitions. 2. Market Overview: a bird s eye overview of the sector including provision rates by category of distributor for each product or service in scope plus analyses of both the unweighted and weighted share of partnerships of providers across all types of distributor combined. 3. Not-for-Profit Affinity Partners: a detailed investigation into the current status of partnerships for the product(s) and service(s) in question analysed separately (where relevant) for each of: charities; housing associations; lifestyle organisations; professional associations; sports associations; trade associations; trade unions; and universities. 4. Financial Partners: as for chapter 3 but with separate analysis (where relevant) of: banks; building societies; credit and charge cards; credit unions; friendly societies; insurers (tied / multi-tied intermediaries); insurers (underwriters); online aggregators and brokers; packaged accounts; and specialised lenders. 5. Commercial Partners: as for chapter 3 but with separate analysis (where relevant) of: airlines; automotive associations; automotive manufacturers; coalition loyalty schemes and frequent flyer programs; estate agency and property service firms; football and rugby clubs; internet, media and telecoms entities; online price comparison providers; retailers; travel companies; and utilities and gas boiler manufacturers. Finaccord Ltd., 2015 Web: www.finaccord.com. E-mail: info@finaccord.com 9
What are the key features of the series? Key features of this series include: five separate studies covering the following fields: accident and health insurance; household and home emergency insurance; life insurance, retirement products and financial advice; motor and breakdown recovery insurance; and travel insurance; results drawn from an extensive survey of 2,555 affinity and partnership marketing distributors for insurance and other financial services in the UK; analyses of the share of partnerships of providers for each distributor category and across all categories combined on both an unweighted and weighted basis; accompanying Partner BASE database with each report, providing a complete listing of all affinity and partnership marketing schemes in place, searchable by partner type, operating model and product provider. Finaccord Ltd., 2015 Web: www.finaccord.com. E-mail: info@finaccord.com 10
How can the research be used? You may be able to use this series of reports and the Partner BASE databases that accompany it in one or more of the following ways: drill down into the detail lying behind affinity and partnership marketing schemes for the specific insurance and other financial products in which you are interested; gain access to research that chronicles the vast majority of affinity and partnership marketing opportunities in mainstream consumer insurance lines in the UK; understand not only which providers have secured the most partnerships but which are likely to hold the most valuable deals for each product or service; benchmark the competitive position of your own organisation in affinity and partnership marketing and spot opportunities for displacing rivals; plan your future affinity and partnership marketing strategy armed with the best market and competitor intelligence available on this subject. Finaccord Ltd., 2015 Web: www.finaccord.com. E-mail: info@finaccord.com 11
How can the Partner BASE be used? Filter by category Select operating model LIFE INSURANCE, RETIREMENT PRODUCTS AND FINANCIAL ADVICE Organisation Type Product / service Offered? Operating model Partner(s) Saffron B.S. Building societies Financial advice Yes External IFA Towergate Financial Saffron B.S. Building societies Life insurance Yes External IFA + external underwriter Dignity Pre Arrangement, Towergate Financial Saffron B.S. Building societies Retirement products Yes External IFA Towergate Financial Saga (Acromas) Insurers - underwriters Financial advice Yes External IFA my wealth (Wealth at Work) Saga (Acromas) Insurers - underwriters Life insurance Yes Multiple external underwriters Legal & General, Vitality Life Saga (Acromas) Insurers - underwriters Retirement products Yes Multiple external providers Just Retirement, Legal & General Look up specific affinity partners Choose product / service Identify partners Finaccord Ltd., 2015 Web: www.finaccord.com. E-mail: info@finaccord.com 12
Who can use the research? 1. Aggregators, brokers, IFAs and other intermediaries: affinity and partnership marketing schemes represent a growth opportunity in many of the sectors considered as consumers migrate to alternative distribution interfaces and channels; 2. Banks and building societies: the reports will provide insights into where banks and building societies belong in the wider market for insurance partnerships; 3. Insurance companies: understand the prospects for affinity and partnership marketing across each of the main lines of personal insurance and the preferences of partner organisations when it comes to solutions based around intermediaries as opposed to direct relationships with the ultimate product providers; 4. Management consultancies: are you helping an organisation in any of the preceding categories with its distribution strategy? This research will help you to evaluate the options in affinity and partnership marketing, saving time and effort on researching the subject yourself. Finaccord Ltd., 2015 Web: www.finaccord.com. E-mail: info@finaccord.com 13
What are some of the key findings? 1) Across all 2,555 organisations researched, 202 (7.9%) were found to offer private medical insurance with most of these initiatives organised via an external broker % of all organisations offering product, and operating models used 100% 80% Other / undisclosed Internal aggregator / broker Internal underwriter 60% Captive aggregator / broker Captive underwriter 40% External aggregator / broker External underwriter via external broker 20% Multiple external underwriters External underwriter 0% Product offered Operating model (see legend) Source: Fin accord Partner BASE Finaccord Ltd., 2015 Web: www.finaccord.com. E-mail: info@finaccord.com 14
What are some of the key findings? (cont.) 2) Among the 110 charities surveyed, initiatives are most in evidence for household, motor and travel insurance but are most scarce for dental and home emergency cover Accident insurance Breakdown recovery insurance Dental insurance Financial advice Health / hospital cash plans Home emergency insurance Household insurance Life insurance Motor insurance Private medical insurance Retirement products Travel insurance 1.8% 6.4% 0.9% 4.5% 5.5% 0.9% 3.6% 9.1% 20.0% 26.4% 26.4% 30.9% Source: Finaccord PartnerBASE 0% 10% 20% 30% 40% % of organisations offering product or service Finaccord Ltd., 2015 Web: www.finaccord.com. E-mail: info@finaccord.com 15
What are some of the key findings? (cont.) 3) When measured on an unweighted basis, partnerships for breakdown recovery insurance are spread quite evenly among the leading providers although the weighted analysis suggests that those of the AA and the RAC are with more important organisations for this product Unweighted provider share of partnerships Weighted provider share of partnerships DAS, 10.6% other, 18.7% other, 30.2% AXA Assistance, 3.4% RAC, 9.0% Parliament Hill, 9.0% HMCA, 9.0% AA, 10.3% Autohome Assistance, 9.3% First Call, 9.0% Comparison Creator, 3.3% AXA Assistance, 4.2% Allianz Global Assistance, 4.3% Call Assist, 4.3% Britannia Rescue (LV=), 5.1% Green Flag, 11.8% AA, 26.4% RAC, 21.9% Source: Fin accord Partner BASE Finaccord Ltd., 2015 Web: www.finaccord.com. E-mail: info@finaccord.com 16
What is the cost and format? Reports in the Affinity and Partnership Marketing in UK Financial Services series are available as standard PDF documents. The Partner BASE databases that accompany them are in Excel format. Costs for these studies plus the related title about commercial non-life insurance, are as follows: REPORT COST * Affinity and Partnership Marketing in UK Accident and Health Insurance Affinity and Partnership Marketing in UK Household and Home Emergency Insurance Affinity and Partnership Marketing in UK Life Insurance, Retirement Products and Financial Advice Affinity and Partnership Marketing in UK Motor and Breakdown Recovery Insurance Affinity and Partnership Marketing in UK Travel Insurance Affinity and Partnership Marketing in UK Commercial Non-Life Insurance 1,495 1,495 1,495 1,495 795 1,495 * For purchases of multiple reports, a discount scale is available: please contact Fin accord for further details. # VAT at the prevailing rate will be added to the basic price for UK-based buyers except for where the request is for hard copy only. Costs quoted are for a single office, single country licence only. For corporate user licence options, please see the next slide for further details. Invoices can be paid in EUR or USD, at the prevailing exchange rate, if preferred. Finaccord Ltd., 2015 Web: www.finaccord.com. E-mail: info@finaccord.com 17
How can the research be purchased? Simple. Just go to the relevant area of the Fin accord website available at http://www.finaccord.com/order_uk_apmr.htm and fill in the online order form, clearly indicating: report required type of corporate user licence, if required * billing name address and e-mail address purchase order number, if applicable Please allow up to one working day for the delivery of electronic copy by e-mail. * For the corporate user licence please choose one of the following options: 1. One office, one country: no supplement over and above basic cost of reports ordered 2. Multiple offices, one country: additional 20% over and above basic cost of reports ordered 3. Multiple offices, two to ten countries: additional 50% over and above basic cost of reports ordered 4. Global (unlimited offices in unlimited countries): additional 100% over and above basic cost of reports ordered VAT at the prevailing rate will be added to the price of any corporate user licence acquired by UK-based buyers. Finaccord Ltd., 2015 Web: www.finaccord.com. E-mail: info@finaccord.com 18