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Finaccord's report titled Affinity and Partnership Marketing in UK Commercial Non-Life Insurance is an updated and expanded study of insurance partnerships in place with commercial affinity groups in the UK. It is based on a survey of 1,280 actual and potential partners across eight categories, namely: banks and building societies; lifestyle organisations; online aggregators and brokers; professional associations; sports organisations; trade associations; trade unions; and others.

The analysis of partnerships in commercial non-life insurance has been taken to an unprecedented level of depth by splitting out partnerships for five distinct insurance lines: commercial liability; commercial motor; commercial property; commercial specialised (e.g. event cancellation, legal expenses, trade credit); and professional indemnity.

The PartnerBASE™ database that accompanies the report details more than 1,400 externally-organised affinity schemes for commercial non-life insurance identified by Finaccord, recording the operating models and partners used in each instance. Together, the report and database together will provide you with the definitive guide to current and future opportunities in affinity and partnership marketing of commercial non-life insurance in the UK.

Table Of Contents

Affinity and Partnership Marketing in UK Commercial Non-Life Insurance
00 EXECUTIVE SUMMARY 1
10 INTRODUCTION 2
Background 2
Rationale 2
Affinity and partnership marketing is an important channel for distributing commercial non-life insurance 2
Methodology 2
Organisations investigated 2
Finaccord's research covers a total of 1,280 actual and potential partner organisations 2
Definitions 3
Insurance products 3
Operating models 4
PartnerBASE syntax 4
Finaccord 5
UK affinity and partnership marketing publications 5
UK commercial non-life insurance 5
20 MARKET OVERVIEW 7
Introduction 7
Overview of commercial non-life insurance provision through affinities and partnerships 7
Finaccord's research identifies well over 500 organisations with schemes for commercial non-life cover 7
among which online aggregators and brokers' partnerships often incorporate the widest coverage 8
Affinity partnerships are least likely to extend to commercial motor insurance 9
The vast majority of commercial affinity schemes are organised via an external broker 10
A total of 227 brokers are involved in at least one commercial affinity program 11
Towergate has the most relationships out of all intermediaries active in this channel 12
followed by Arthur J Gallagher, Jelf and Bluefin 12
HIscox has the largest share of product relationships among underwriters 13
followed by RSA, AXA, UK Insurance and Allianz 13
Top five broker and underwriter concentration by product 15
Among underwriters, commercial motor insurance is the most concentrated sector 15
Commercial liability insurance 16
Affinity schemes exist for commercial liability insurance are most widespread among sports organisations 16
Over 80% of schemes for commercial liability insurance are set up via an external broker 17
Perkins Slade features strongly for commercial liability cover, through its ties with sports organisations 18
while Sportscover Europe appears in the ranking of leading underwriters for the same reason 18
Commercial motor insurance 20
Online aggregators and brokers are the only types of distributor that regularly offer this type of cover 20
External brokers and aggregators dominate the operating models used for commercial motor insurance 21
Commercial motor insurance schemes tend to be set up by generalist brokers rather than specialists 22
Among underwriters, UK Insurance (via NIG) claims the most partnerships 22
Commercial property insurance 24
Almost 300 affinity schemes are in place for commercial property insurance 24
with external brokers once again responsible for the majority of these 24
TH March holds several relationships with jewellery-related trade associations 26
Almost two thirds of underwriting partnerships for commercial property cover are held by five companies 26
Commercial specialised insurance 28
Trade associations and sports organisations offer policies tailored to risks specific to member activities 28
with a total of 249 distributors offering at least one form of commercial specialised insurance cover 28
Direct links with external underwriters are more common for specialised risks 29
Hencilla Canworth and TH March provide cover to specific types of affinity partner 30
The AA is a leader among underwriters as a result of its deals for commercial breakdown cover 31
Professional indemnity insurance 33
Almost 60% of professional associations offer professional indemnity cover to their members 33
with nearly 300 schemes in evidence across all 1,280 distributors surveyed 34
Parliament Hill and Trafalgar Risk Management specialise in schemes for professional associations 35
while Perkins Slade concentrates on sports organisations 35
Hiscox is the dominant underwriter used for partnerships for professional indemnity insurance 35
30 AFFINITY CATEGORIES 37
Banks and building societies 37
Several challenger banks have emerged to compete with the major incumbents 37
and further structural changes to the market are likely to occur in future years 37
Mergers and acquisitions have caused the number of extant building society brands to shrink to 49 37
Analysis of partnerships 37
14 organisations in this category distribute commercial liability cover 37
AXA and UK Insurance each work with two of the major high street brands 39
The provision rate for commercial motor insurance is only slightly below that for commercial liability 41
and almost all partnerships are the same 42
The provision rate for commercial property insurance is identical to that for commercial motor insurance… 44
… with most partnerships overlapping with those for commercial liability and motor cover 45
Four banking institutions have schemes in place for specialised commercial insurance… 47
… including two major high street banks 48
Relatively few banks offer professional indemnity cover in spite of the theoretical potential for doing so 50
AXA is the only identifiable underwriter in this sphere 51
Lifestyle organisations 53
Introduction 53
The category of lifestyle organisations embraces a diverse range of entities 53
Analysis of partnerships 53
Over a third of lifestyle organisations offer commercial liability insurance to members 53
No providers have more than two relationships in this sphere 54
Only one lifestyle organisation has established a scheme for commercial motor insurance 57
while six have done so for commercial property insurance 58
Jelf and Aon are the only providers with multiple partnerships in this category 59
Making Music, the National Association of Choirs and Streets Alive all offer event insurance 61
with the first two of these also active as distributors of professional indemnity cover 63
Online aggregators and brokers 64
Introduction 64
The market for online aggregation and broking has become more concentrated in recent years 64
as a result of a number of factors including the challenge thrown up by cashback websites 64
Analysis of partnerships 65
Many entities in this category have developed their own search engines for commercial liability insurance 65
though Seopa, Simply Business and Towergate work with leading aggregators 66
Motor insurance is the commercial product most often organised internally by aggregators and brokers 68
The external providers for commercial property insurance are the same as for commercial liability cover 69
Online aggregators and brokers do not offer specialised policies tailored to specific industries 70
Professional indemnity insurance also features partnerships that are similar to other policy types 71
Professional associations 72
Introduction 72
The combined membership of professional associations comes to just under 4 million 72
Analysis of partnerships 74
Almost a third of professional associations have organised a scheme for commercial liability insurance 74
Greybrook Insurance Brokers holds the most relationships among brokers 75
while Hiscox takes over a third of underwriter partnerships 75
Only four professional associations offer commercial (as opposed to personal) motor insurance 77
albeit the number offering commercial property insurance rises to 19 79
For commercial property insurance, 11 brokers share 16 relationships between them 80
with Hiscox again identifiable as the most prominent underwriter 80
20 professional associations offer policy types classifiable as commercial specialised insurance 82
Four brokers claim more than one relationship in this category 83
DAS is the only underwriter known to work directly with these associations 83
Professional indemnity insurance is a core affinity proposition for a majority of professional associations 85
Trafalgar Risk Management is involved in almost 20% of schemes in this distributor category 86
For professional indemnity cover, 13 underwriters share 28 partnerships between them 86
even if ten are limited to just one relationship each with a professional association 87
Sports organisations 89
Introduction 89
This category includes bodies to which individual sports clubs, practitioners and trainers may belong 89
Analysis of partnerships 89
The vast majority of sports organisations have organised commercial liability insurance 89
among which Perkins Slade is the most visible broker by number of partnerships 90
Hiscox has the most partnerships among underwriters through its relationship with Perkins Slade… 91
… and is followed in this field by Sportscover Europe, a specialist underwriter 91
Commercial property insurance is available from a fairly small minority of sports organisations 93
and none of the eight brokers or underwriters offering the product have more than one scheme 94
Nine sports bodies have specialist insurance schemes in place 96
offering legal expenses and sport-specific insurance 97
Over a third of sports organisations have established affinity programs for professional indemnity cover 99
Perkins Slade takes over half of the broker partnerships in this category 100
and Hiscox and Sportscover Europe again share the most underwriter partnerships 100
Trade associations 102
Introduction 102
Finaccord has extended its coverage in this category to over 700 associations 102
Overview of partnerships 105
Associations in the area of business and personal services boast the highest scheme provision rate 105
though those in the mining, minerals and utilities sub-category offer the broadest range of cover 106
Overview of commercial liability insurance 107
Over 40% of trade associations have organised a scheme for commercial liability cover 107
Seven brokers have established schemes with more than five trade associations each 108
while the top six insurers account for more than a half of identifiable underwriting partnerships 108
Overview of commercial motor insurance 110
The provision rate peaks among associations in the agriculture and forestry sub-category 110
Specialist brokers of motor insurance have tended not to form partnerships with trade associations 112
Overview of commercial property insurance 114
Provision rates for property insurance mirror those for liability as schemes often include combined cover 114
which means that the operating models in use are also similar 114
Towergate and Hiscox are the leading insurance providers for commercial property insurance 115
Overview of commercial specialised insurance 117
Over a quarter of trade associations promote at least one form of commercial specialised insurance 117
Trade associations use more than one provider of specialised cover in around one in ten cases 117
The AA is a leader for breakdown cover arranged through partnerships with trade associations 118
Overview of professional indemnity insurance 120
The sub-category of business and personal services registers the highest provision rate 120
with a total of 157 broker relationships in evidence 121
Agriculture and forestry 123
Only one underwriter has a direct partnership in this sub-category for commercial liability insurance 123
but it is likely to be more valuable than all of the broker partnerships combined 124
Other product initiatives tend to use the same providers 126
but commercial specialised insurance risks can involve additional underwriters 126
Business and personal services 128
Over a half of the associations in this sub-category offer commercial liability insurance 128
spread across more than 40 separate brokers 129
and 13 underwriters 129
Two associations change providers for commercial motor and property insurance 132
but there is more variation among providers used for specialised insurance 132
Ten associations in this category offer professional indemnity insurance but not commercial liability cover 134
Construction and engineering 136
Almost a half of trade associations in this category offer commercial liability insurance 136
and two of them utilise a captive broker in this context 137
Over 25% of associations in this sub-category offer at least one form of commercial specialised cover 139
with insurance-backed guarantees particularly visible in this context 139
Food, drink and healthcare 141
SME Insurance Services provides commercial liability insurance to several associations in the food industry 141
Fleet and commercial breakdown insurance are often sourced from the AA 144
Manufacturing and packaging 146
Almost all commercial liability insurance schemes in this sub-category are intermediated by brokers 146
and nine brokers hold two or more relationships 147
The Glass and Glazing Federation uses a captive broker to manage its insurance-backed guarantee 149
Media, marketing and entertainment 151
Just under a third of associations in this sector have commercial liability insurance schemes in place 151
often run by specialist brokers such as Allan Chapman and James and Apex Insurance Services 152
PIMS-SCA works with two associations in this sub-category for professional indemnity insurance 154
Cancellation and event insurance are important types of specialised insurance for this sub-category 154
Mining, minerals and utilities 156
Almost a third of trade associations in this sub-category have organised commercial liability cover 156
OAMPS runs several schemes related to the fuel industry 157
Environmental risks and hazardous waste insurance are among specialist policies in this sector 159
Retailing and distribution 161
A majority of trade associations in this sub-category have schemes for commercial liability insurance 161
with Bluefin, TH March and Willis holding more than a third of broker relationships between them 161
while Hiscox is the underwriter laying claim to the most scheme involvement 162
Almost a half of trade associations in this sub-category promote at least one type of specialised cover 164
Technology and telecoms 166
Six commercial liability insurance programs are visible in this sub-category 166
Jelf is used as a broker of professional indemnity cover by an additional trade association 167
Transport and tourism 168
Only two brokers hold more than one partnership for commercial liability cover in this sub-category 168
and only Hiscox, Leisureinsure and Novae Underwriting have underwriting relationships in this arena 169
Specialised covers in this sub-category include travel bonding and cancellation insurance 171
Other miscellaneous 173
The largest trade associations in this sub-category have more than 100,000 members 173
The provision of commercial liability insurance within this sector is very fragmented 174
Legal expenses and business interruption cover are frequently offered through these trade associations 176
Trade unions 177
Introduction 177
There are over 6 million trade union members in the UK 177
Analysis of partnerships 179
Unions can provide commercial liability cover for their members when they work freelance 179

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