1. Market Research
  2. > Financial Services
  3. > Insurance Market Trends
  4. > Affinity and Partnership Marketing in UK Household and Home Emergency Insurance

Finaccord's report titled Affinity and Partnership Marketing in UK Household and Home Emergency Insurance represents the most detailed research ever undertaken on this sector and is one of seven studies in the latest series of publications. Drawing on the results of a survey of 2,555 organisations, the report analyses the penetration, operating models and provider share of relationships of affinity and partnership marketing schemes for household and home emergency insurance across a range of distributor categories.

These include: banks; building societies, charities; estate agency and property services firms; housing associations; internet, media and telecoms entities; online aggregators and brokers; professional associations; retailers; trade unions; and utilities and gas boiler manufacturers. Moreover, the PartnerBASE™ database that accompanies the report provides the granular detail behind the analysis, detailing each of more than 450 affinity and partnership marketing initiatives traced by Finaccord in this sector.

Table Of Contents

Affinity and Partnership Marketing in UK Household and Home Emergency Insurance
Table of Contents

Executive Summary

Introduction

Market Overview

Non-for-Profit Affinity Partners

Financial Partners

Commercial Partners

List of Graphics / Tables



0.0 EXECUTIVE SUMMARY

1.0 INTRODUCTION

Background

Rationale

Affinity and partnership marketing remains an important, strategic topic for financial institutions...

... as the ability of affinity and corporate partners to compete effectively has evolved over time

Methodology

Organisations investigated

Finaccord's research covers a total of 2,555 actual and potential partner organisations...

... representing virtually all entities that could be significant in this field

Calculation of weighted provider share of partnerships

Finaccord's methodology identifies providers that are likely to hold the most valuable relationships...

... by means of formulae that take into account not only UK traffic rankings for organisations' websites...

... but also distribution shares for each financial product or service by organisation category...

... and the total number of organisations in each category that actually distribute the product

Definitions

Financial products

Operating models

PartnerBASE syntax

Finaccord

UK affinity and partnership marketing publications

UK consumer research publications

2.0 MARKET OVERVIEW

Affinities and partnerships in UK household and home emergency insurance

Household insurance

There are close to 400 schemes for household insurance involving an external partner...

... which are divided across 25 distributor categories

More affinity schemes are organised via an external intermediary than directly with an underwriter

Only two organisations are ranked in the top eight in both the unweighted and weighted analysis

In the unweighted analysis, RSA secures a leading position through over 50 partnerships…

… while the leader in the weighted analysis is an aggregator, not an underwriter…

… although is followed by UK Insurance and Aviva due to their financial sector partnerships

Home emergency insurance

The provision rate of home emergency cover is much lower than that for household insurance...

... with utilities and gas boiler manufacturers the most likely to offer it followed by insurance underwriters

Over two thirds of relationships have been set up directly with a single, external assistance company

AXA Assistance is the leader whether measured by unweighted or weighted share of partnerships

3.0 NOT-FOR-PROFIT AFFINITY PARTNERS

Charities

Introduction

The websites of Age UK and the RSPB attract particularly high UK-based traffic

Analysis of partnerships

Household insurance is promoted by over a quarter of charities researched

Arthur J Gallagher provides household insurance to a number of medical charities...

...making it the segment leader in both unweighted and weighted terms

Just one charity promotes home emergency insurance on a stand-alone basis

Housing associations

Introduction

Finaccord's coverage extends to entities managing over 60% of total housing association stock in the UK

Analysis of partnerships

Schemes for tenants' contents insurance have been set up by the vast majority of housing associations…

… with a half of the 50 investigated using that organised by the National Housing Federation

Lifestyle organisations

Introduction

The category of lifestyle organisations embraces a diverse range of entities

Analysis of partnerships

Household insurance is available from a significant number of lifestyle organisations

RSA, UIA and Vantage Insurance Services dominate the weighted analysis of partnerships

Professional associations

Introduction

The combined membership of professional associations comes to just under 4 million

Analysis of partnerships

Over a third of professional associations have organised a scheme for household insurance

The partnerships of Hiscox make it the leader in this category in weighted terms…

… although another competitor leads the unweighted analysis

Only one association provides home emergency insurance on a stand-alone basis

Sports organisations

Introduction

This category includes bodies to which individual sports clubs, practitioners and trainers may belong

Analysis of partnerships

Few sports organisations have established affinity programs for household insurance

Trade associations

Introduction

Finaccord has extended its coverage in this category to over 700 associations

Analysis of partnerships

32 trade associations offer household insurance to the employees of their member companies...

... although only six providers possess two or more relationships in this domain

NFU Mutual is ranked second to RGA Underwriting in the weighted analysis

Trade unions

Introduction

There are over 6 million trade union members in the UK

Analysis of partnerships

Almost a third of trade unions include household insurance among offers made to members

By both unweighted and weighted share of partnerships, UIA is the leading provider in this field...

... as a consequence of its deals with nine trade unions, including the UK's two largest

LV= overtakes Endsleigh in the weighted analysis but Aviva continued to be ranked second

One trade union offers home emergency insurance on a stand-alone basis

Universities

Introduction

The Open University's website attracts more UK traffic than that of any other UK-based university

Analysis of partnerships

Household insurance can be bought by current students or alumni of many universities

The supply structure in this distribution category is comparatively concentrated

4.0 FINANCIAL PARTNERS

Banks

Introduction

Several challenger banks have emerged to compete with the major incumbents...

... and further structural changes to the market are likely to occur in future years

Analysis of partnerships

For household insurance, banks utilise a variety of operating models

Eight companies hold two or more distribution deals with retail banking brands

Aviva enjoys a narrow lead over Lloyds Bank General Insurance in the weighted analysis

Building societies

Introduction

Mergers and acquisitions have caused the number of extant building society brands to shrink to 49

Analysis of partnerships

Over three quarters of building societies remain active as distributors of household insurance

The tie of UK Insurance with the Nationwide dominates the analysis of weighted partnership shares

Credit unions

Introduction

Total membership across around 360 credit unions in the UK now exceeds 1.17 million…

... with all key credit union metrics having grown strongly in recent years…

... apart from the actual number of credit unions given that there were over 500 in 2007

Few credit union websites attract a significant volume of UK-based visitors

Analysis of partnerships

Only two credit unions adhere to a scheme for distributing household insurance...

Friendly societies

Introduction

Finaccord's research covers 25 of the larger friendly societies in the UK...

... among which Liverpool Victoria (LV=) is by far the largest 69 Analysis of partnerships

Few friendly societies are active in household insurance 70 For home emergency insurance, the picture is even more straightforward

Insurers (tied / multi-tied intermediaries)

Introduction

Over 60 branded intermediaries effectively act as tied or multi-tied agents for insurance products…

… meaning that they also constitute a partnership marketing opportunity

Analysis of partnerships

A diverse range of operating models is in evidence among entities in this category…

… with partnerships spread quite thinly across a broad array of providers

Most entities in this category work with a single external provider for home emergency cover...

... with AXA Assistance claiming the highest weighted share of partnerships among nine providers

Insurers (underwriters)

Introduction

Over 80 insurance underwriting brands can be broken down into three main sub-categories

Sometimes, insurance underwriting brands distribute the policies of other underwriters or brokers

Analysis of partnerships

Almost 85% of insurance brands that are used to sell household policies underwrite cover themselves

Most active household insurance underwriters work with an external provider of home emergency cover

Four competitors have five or more partnerships in this category

... with AXA Assistance again taking the highest weighted share

Online aggregators and brokers

Introduction

The market for online aggregation and broking has become more concentrated in recent years...

... as a result of a number of factors including the challenge thrown up by cashback websites

Analysis of partnerships

Most entities in this category have their own search engine but some outsource to external providers…

… with Seopa most prominent in this respect

Few entities in this category intermediate stand-alone home emergency insurance policies

Packaged accounts

Introduction

The number of customers with a packaged account grew rapidly following their introduction

Regulatory intervention clouded the outlook for a time…

… although the FCA's most recent pronouncements seem relatively mild

Analysis of partnerships

A handful of packaged accounts incorporate bundled home emergency insurance

Specialised lenders

Introduction

The category of specialised lenders includes a variety of different types of institution...

... with many new competitors having emerged in the wake of the 'credit crunch'

Analysis of partnerships

Only two initiatives for household insurance are visible in this partner category...

...and only one for home emergency insurance

5.0 COMMERCIAL PARTNERS

Automotive associations

Introduction

In addition to the AA and RAC, nine other organisations fall within this partner category

Analysis of partnerships

… most of which are distributors of household insurance

Sterling Insurance benefits from its partnership for higher value policies with the AA

The AA has been active in the market for home emergency insurance for several years

Automotive manufacturers

Introduction

Among automotive manufacturers, four German brands attract the most UK-based traffic to their websites

Analysis of partnerships

Only one automotive manufacturer distributes branded household insurance policies

Coalition loyalty schemes and frequent flyer programs

Introduction

Among qualifying entities, Nectar's website attracts the most UK-based online traffic

Analysis of partnerships

Two loyalty schemes allow members to earn 'currency' by purchasing household insurance

Members of Nectar can buy stand-alone home emergency cover from British Gas

Estate agency and property service firms

Introduction

This category includes prominent online estate agency and property portals as well as traditional chains

Analysis of partnerships

Over two thirds of organisations in this category have an arrangement for promoting household cover…

… with fast-growing Mortgage Advice Bureau claiming the most partnerships…

... although it is overtaken by lovemoney.com in the weighted analysis

Football and rugby clubs

Introduction

The research investigates a total of 76 professional football and rugby clubs

Analysis of partnerships

Most football and rugby clubs have lost interest in affinity insurance products, including household insurance

Internet, media and telecoms entities

Introduction

This category embraces many organisations with extremely high UK website rankings...

... which can have a substantial impact on the analysis of weighted partnership shares

Analysis of partnerships

Most initiatives in this category are run via external aggregators or brokers

Hood Group, lovemoney.com and Moneysupermarket.com all gain prominence in the weighted analysis…

… although this could diminish if Google extends its comparison service to household insurance

Online price comparison providers

Introduction

Several online price comparison providers offer insurance or financial services product comparisons

Analysis of partnerships

The presence of online price comparison providers has diminished substantially in recent years

Retailers

Introduction

The research focuses on 80 of the retailer brands with most potential to offer insurance products

Analysis of partnerships

Schemes for selling household insurance have tended to condense down to the largest retailer brands…

... with RSA claiming the most initiatives in this arena

The gross premiums written of Tesco Underwriting fell by almost one third between 2011 and 2013

Utilities and gas boiler manufacturers

Introduction

Utilities firms have enjoyed considerable success as distributors of home emergency insurance…

… and this is also natural territory for gas boiler manufacturers

Analysis of partnerships

A narrow majority of firms in this category act as distributors of home emergency insurance...

... with nine providers active as external or captive partners of constituent organisations in this context...

... and with British Gas and Home Energy Services dominant in the analysis of weighted partnerships

LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY

1.0 INTRODUCTION

The affinity and partnership marketing universe 3 Organisations investigated, segmented by broad category

2.0 MARKET OVERVIEW

Affinity and partnership marketing schemes for household insurance in the UK: provision rate by category of partner

Affinity and partnership marketing schemes for household insurance in the UK: operating models

Affinity and partnership marketing schemes for household insurance in the UK: unweighted and weighted provider share of partnerships

Affinity and partnership marketing schemes for home emergency insurance in the UK: provision rate by category of partner

Affinity and partnership marketing schemes for home emergency insurance in the UK: operating models

Affinity and partnership marketing schemes for home emergency insurance in the UK: unweighted and weighted provider share of partnerships

3.0 NOT-FOR-PROFIT AFFINITY PARTNERS

Charities offering household insurance: provision rates and operating models

Charities offering household insurance: unweighted and weighted provider share of partnerships

Charities offering home emergency insurance: provision rates and operating models

Housing associations offering household insurance: provision rates and operating models

Housing associations offering household insurance: unweighted and weighted provider share of partnerships

Lifestyle organisations offering household insurance: provision rates and operating models

Lifestyle organisations offering household insurance: unweighted and weighted provider share of partnerships

Top 40 professional associations in the UK ranked by member numbers, 2015 (table)

Professional associations offering household insurance: provision rates and operating models

Professional associations offering household insurance: unweighted and weighted provider share of partnerships

Professional associations offering home emergency insurance: provision rates and operating models

Sports organisations offering household insurance: provision rates and operating models

Sports organisations offering household insurance: unweighted and weighted provider share of partnerships

Top 80 trade associations in the UK ranked by member numbers, 2015 (table)

Top 80 trade associations in the UK ranked by member numbers, 2015 (table) (continued)

Trade associations offering household insurance: provision rates and operating models

Trade associations offering household insurance: unweighted and weighted provider share of partnerships

Top 40 trade unions in the UK ranked by member numbers, 2015 (table)

Trade unions offering household insurance: provision rates and operating models

Trade unions offering household insurance: unweighted and weighted provider share of partnerships

Trade unions offering home emergency insurance: provision rates and operating models

Universities offering household insurance: provision rates and operating models

Universities offering household insurance: unweighted and weighted provider share of partnerships

4.0 FINANCIAL PARTNERS

Banks offering household insurance: provision rates and operating models

Banks offering household insurance: unweighted and weighted provider share of partnerships

Building societies offering household insurance: provision rates and operating models

Building societies offering household insurance: unweighted and weighted provider share of partnerships

Credit unions offering household insurance: provision rates and operating models

Credit unions offering household insurance: unweighted and weighted provider share of partnerships

Friendly societies offering household insurance: provision rates and operating models

Friendly societies offering home emergency insurance: provision rates and operating models

Insurers (tied / multi-tied agents) offering household insurance: provision rates and operating models

Insurers (tied / multi-tied agents) offering household insurance: unweighted and weighted provider share of partnerships

Insurers (tied / multi-tied agents) offering home emergency insurance: provision rates and operating models

Insurers (tied / multi-tied agents) offering home emergency insurance: unweighted and weighted provider share of partnerships

Insurers (underwriters) offering household insurance: provision rates and operating models

Insurers (underwriters) offering household insurance: unweighted and weighted provider share of partnerships

Insurers (underwriters) offering home emergency insurance: provision rates and operating models

Insurers (underwriters) offering home emergency insurance: unweighted and weighted provider share of partnerships

Online aggregators and brokers offering household insurance: provision rates and operating models

Online aggregators and brokers offering household insurance: unweighted and weighted provider share of partnerships

Online aggregators and brokers offering home emergency insurance: provision rates and operating models

Online aggregators and brokers offering home emergency insurance: unweighted and weighted provider share of partnerships

Packaged accounts offering home emergency insurance: provision rates and operating models

Packaged accounts offering home emergency insurance: unweighted and weighted provider share of partnerships

Specialised lenders offering household insurance: provision rates and operating models

Specialised lenders offering household insurance: unweighted and weighted provider share of partnerships

Specialised lenders offering home emergency insurance: provision rates and operating models

5.0 COMMERCIAL PARTNERS

Automotive associations offering household insurance: provision rates and operating models

Automotive associations offering household insurance: unweighted and weighted provider share of partnerships

Automotive associations offering home emergency insurance: provision rates and operating models

Automotive manufacturers offering household insurance: provision rates and operating models

Coalition loyalty schemes and frequent flyer programs offering household insurance: provision rates and operating models

Coalition loyalty schemes and frequent flyer programs offering household insurance: unweighted and weighted provider share of partnerships

Coalition loyalty schemes and frequent flyer programs offering home emergency insurance: provision rates and operating models

Estate agency and property service firms offering household insurance: provision rates and operating models

Estate agency and property service firms offering household insurance: unweighted and weighted provider share of partnerships

Football and rugby clubs offering household insurance: provision rates and operating models

Football and rugby clubs offering household insurance: unweighted and weighted provider share of partnerships

Internet, media and telecoms entities offering household insurance: provision rates and operating models

Internet, media and telecoms entities offering household insurance: unweighted and weighted provider share of partnerships

Online price comparison providers offering household insurance: provision rates and operating models

Online price comparison providers offering household insurance: unweighted and weighted provider share of partnerships

Online price comparison providers offering home emergency insurance: provision rates and operating models

Online price comparison providers offering home emergency insurance: unweighted and weighted provider share of partnerships

Retailers offering household insurance: provision rates and operating models

Retailers offering household insurance: unweighted and weighted provider share of partnerships

Utilities and gas boiler manufacturers offering household insurance: provision rates and operating models

Utilities and gas boiler manufacturers offering home emergency insurance: provision rates and operating models

Utilities and gas boiler manufacturers offering home emergency insurance: unweighted and weighted provider share of partnerships

View This Report »

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 24 Million searchable statistics with tables, figures & datasets
  • More than 10,000 trusted sources
24/7 Customer Support

Talk to Veronica

+1 718 514 2762

Purchase Reports From Reputable Market Research Publishers
Fraud Detection and Prevention Market by Solution, Application Areas, Service, End-User, Vertical - Global Forecast to 2021

Fraud Detection and Prevention Market by Solution, Application Areas, Service, End-User, Vertical - Global Forecast to 2021

  • $ 7150
  • Industry report
  • September 2016
  • by MarketsandMarkets

“Rapid increase in mobile banking will drive the FDP market” The Fraud Detection and Prevention (FDP) market size is estimated to grow from USD 14.36 billion in 2016 to USD 33.19 billion by 2021, at ...

Customer Experience Management Study—Malaysia’s Life Insurance Market, 2015

Customer Experience Management Study—Malaysia’s Life Insurance Market, 2015

  • $ 4950
  • Industry report
  • September 2016
  • by Frost & Sullivan

Benchmarking the Industry Excellence in Delivering Superior Customer Experience Customer experience is the accumulation of customers’ experiences throughout their journey with the supplier, across any ...

Customer Experience Management Study—Malaysia’s Health Insurance Sector 2015

Customer Experience Management Study—Malaysia’s Health Insurance Sector 2015

  • $ 4950
  • Industry report
  • September 2016
  • by Frost & Sullivan

Benchmarking Industry Excellence in Delivering a Superior Customer Experience Customer experience is the accumulation of customers’ experiences throughout their journey with the supplier, across any ...


ref:plp2015

Reportlinker.com © Copyright 2016. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.