Affinity and Partnership Marketing in UK Accident and Health Insurance  

Affinity and Partnership Marketing in UK Accident and Health Insurance  

Affinity and Partnership Marketing in UK Accident and Health Insurance

Finaccord's report titled Affinity and Partnership Marketing in UK Accident and Health Insurance represents the most detailed research ever undertaken on this sector and is one of eight studies in a new series of publications. Drawing on the results of a survey of 2,565 organisations, the report analyses the penetration, operating models and provider share of relationships of affinity and partnership marketing schemes for private medical insurance, health / hospital cash plans, dental insurance and personal accident insurance. These include banks, building societies, charities, friendly societies, Internet, media and telecoms entities, lifestyle organisations, professional associations, retailers, trade associations and trade unions. Moreover, the PartnerBASE database that accompanies the report provides the granular detail behind the analysis, detailing each of close to 450 affinity and partnership marketing initiatives traced by Finaccord in this sector. You may be able to use this report and associated PartnerBASE database in one or more of the following ways: drill down into the detail lying behind affinity and partnership marketing schemes for accident and health insurance in the UK; gain access to research that chronicles the vast majority of affinity marketing opportunities in accident and health insurance; use the PartnerBASE database to identify trends by partner type, operating model and product provider; benchmark the competitive position of your own organisation in affinity and partnership marketing of accident and health insurance and spot opportunities for displacing rivals; plan your future affinity and partnership marketing strategy for accident and health insurance armed with the best market and competitor intelligence available on this subject. Together, the report and PartnerBASE database will provide you with the definitive guide to current and potential affinity and partnership marketing opportunities in UK accident and health insurance.

TABLE OF CONTENTS :

0.0 EXECUTIVE SUMMARY.... 1
Research background and structure.. 2
Sports organisations are the most likely type of affinity partner for personal accident insurance... ..... 2
... while trade and professional associations are important for private medical insurance........ 3
Health cash plans are distributed through partnerships with specialist providers.. 3
Dental insurance has the fewest affinity partnerships out of these types of health insurance...  4
... and is only ever distributed alongside other accident and health products........ 4

1.0 INTRODUCTION...... 5
Rationale.... 6
The channels used to distribute financial products and services in the UK continue to proliferate ...... 6
Methodology........ 8
Finaccord... 9
UK affinity and partnership marketing publications 9
Other UK consumer research publications.. 9
UK small business financial services research publications... 10
PartnerBASE™. 10
Definitions. 11

2.0 MARKET OVERVIEW...... 12
Introduction....... 13
Finaccord identified over 300 organisations with a partnership for accident or health insurance... ... 13
... with private medical insurance identifiable as the most common form of cover offered...... 13
Affinities and partnerships in UK personal accident insurance 15
Three quarters of all partnerships are held by four categories of partner... 15
Only sports organisations offer personal accident insurance in more than half of all cases... 15
Single underwriters and external brokers are used in the majority of partnerships....... 17
... with one underwriter and one broker holding the largest number of partnerships..... 17
Affinities and partnerships in UK private medical insurance.... 19
Work-related affinity partnerships account for six out of ten distributors.... 19
... and this is the only form of accident or health policy to attract online aggregators and brokers .... 19
Private medical insurance is a key affinity product for professional associations 19
Both internal and external brokers are more important than for personal accident insurance 21
Intermediaries hold the most partnerships, even though the number of providers is limited...  21
... and are split between benefits managers, online aggregators and a health insurance specialist . 21
Bupa remains the leader for health insurance partnerships by a clear margin.... 21
Affinities and partnerships in UK health cash plans......... 23
Trade unions have the same interest in health cash plans as they do for private medical insurance ...
  23
Health cash plans are offered by one in five friendly societies 23
Most schemes are organised in conjunction with a single underwriter....... 25
…with these competitors typically specializing in health cash plans 25
... as they are not a product of core interest to brokers. 25
Affinities and partnerships in UK dental insurance. 27
Programs for dental insurance are completely absent from 21 partner categories....... 27
... and the percentage of partners promoting it only exceeds 10% in one category...... 27
Three intermediaries account for nearly half of all partnerships........ 29
Three underwriters of dental insurance hold nearly all of the single partnerships between them...... 29

3.0 NOT-FOR-PROFIT AFFINITY GROUPS...... 31
3.1 Charities....... 32
Introduction....... 32
Analysis of partnerships...... 32
Only one charity has a partnership to distribute accident and health insurance.. 32
3.2 Lifestyle organisations... 33
Introduction....... 33
Analysis of partnerships...... 33
Some lifestyle organisations offer accident and health insurance, although with little affinity. 33
3.3 Political parties...... 35
Introduction....... 35
3.4 Professional associations....... 36
Introduction....... 36
28 professional associations possess in excess of 30,000 individual members... 36
Analysis of partnerships...... 38
Professional associations are leading partners for private medical and dental insurance...... 38
... with less concern for personal accident insurance.... 38
Bupa and Parliament Hill join HMCA as major partners for private medical insurance. 39
... while HMCA is the only broker active for health cash plans 41
Dental insurance is never offered without other forms of health insurance 42
3.5 Sports organisations...... 43
Introduction....... 43
Analysis of partnerships...... 43
Personal accident insurance is a major feature of the benefits offered by sports organisations... .... 43
... some of which also act as distributors for health insurance 44
3.6 Trade associations 46
Introduction....... 46
Analysis of partnerships...... 49
Personal accident insurance is not often promoted by trade associations. 49
... and only two insurers hold single partnerships for this product..... 49
Private Health Partnership is the leading broker of specialist private medical insurance........ 50
Westfield Health is the leading provider of health cash plans for trade associations.... 52
Bupa is the only insurer with direct relationships for dental insurance....... 53
3.7 Trade unions......... 54
Introduction....... 54
Analysis of partnerships...... 56
Personal accident insurance is important for trade union members with no single employer. 56
Partners for private medical insurance are different from health cash plan providers... 58
... which are dominated by single partnerships.... 59
Dental insurance is not part of trade unions’ standard benefits........ 61
3.8 Universities... 62
Introduction....... 62
Private medical insurance is the only form of accident and health cover offered by universities ....... 62

4.0 FINANCIAL PARTNERS. 63
4.1 Banks... 64
Introduction....... 64
Analysis of partnerships...... 65
Banks have few visible partnerships for accident and health insurance.... 65
4.2 Building societies.. 66
Introduction....... 66
Analysis of partnerships...... 66
Building societies concentrate on mortgage-related accident and health products....... 66
4.3 Credit unions......... 67
Introduction....... 67
Analysis of partnerships...... 69
MEMBERS Financial Services offers health cash plans, but credit unions are rarely interested in it ....
  69
4.4 Friendly societies.. 70
Introduction....... 70
Analysis of partnerships...... 72
Friendly societies have their own accident and health insurance products, with few partnerships ... 72
4.5 Insurance companies..... 73
Introduction....... 73
Analysis of partnerships...... 74
New partnerships have been formed by non-life insurers for private medical insurance........ 74
... but these are rarer for other types of accident and health insurance...... 75
4.6 Online aggregators and brokers....... 76
Introduction....... 76
Analysis of partnerships...... 76
Aggregators and brokers are most interested in private medical insurance........ 76
... with PMI Partners identifiable as the external broker for three major aggregators.... 76
Few aggregators or brokers include low cost accident and health products in their portfolio. 77
4.7 Packaged accounts and payment cards... 79
Introduction....... 79
No packaged account or payment card includes any form of accident and health insurance 79
4.8 Pawnbrokers, cheque cashers and providers of foreign exchange and remittance
services.... 80
Introduction....... 80
Even low cost accident and health products are unlikely to appeal to customers of these entities ... 80
4.9 Specialized lenders......... 81
Introduction....... 81
Analysis of partnerships...... 82
Only one specialized lender has an accident or health proposition.. 82

5.0 COMMERCIAL ENTITIES 83
5.1 Airlines......... 84
Introduction....... 84
5.2 Automotive associations......... 85
Introduction....... 85
Analysis of partnerships...... 86
Two associations have entered the market for private medical insurance. 86
5.3 Automotive dealers, repair shops and supermarkets.. 87
Introduction....... 87
Kwik Fit could imitate the RAC’s travel accident policy, to establish an affinity with this form of cover .
  87
5.4 Automotive manufacturers...... 88
Introduction....... 88
A move into accident and health insurance would require a very strong brand... 88
5.5 Estate agents........ 89
Introduction....... 89
Estate agents’ IFAs could recommend health insurance, but formal partnerships are unlikely ......... 89
5.6 Football clubs....... 90
Introduction....... 90
Analysis of partnerships...... 90
Clubs’ multi-product financial services divisions have closed after a brief existence..... 90
Accident and health insurance is included in a range of products offered by several clubs... 90
5.7 Internet, media and telecoms entities........ 92
Introduction....... 92
Analysis of partnerships...... 93
Private medical insurance is distributed by a fifth of Internet, media and telecoms entities.... 93
... with BeatThatQuote.com identifiable as the leading partner for it  93
... although Moneysupermarket.com leads for dental insurance...... 94
5.8 Online price comparison providers... 96
Introduction....... 96
Analysis of partnerships...... 97
BeatThatQuote.com could expand its partnerships further by working with these sites......... 97
5.9 Retailers....... 98
Introduction....... 98
Analysis of partnerships...... 98
Only Tesco offers all three forms of health insurance... 98
... while several leading brands have no products in this area at all. 99
5.10 Travel companies....... 100
Introduction.... 100
Travel insurance overlaps with accident and health insurance...... 100
5.11 Utilities companies..... 101
Introduction.... 101
Failure to sell household insurance bodes ill for accident and health insurance........ 101
5.12 Other commercial entities... 102
Introduction.... 102
Branded conglomerates.... 102
Four diverse organisations are now classified as ‘branded conglomerates’…. 102
… with Virgin planning an ambitious expansion of its financial services activities...... 102
Only Saga is active for accident and health insurance......... 102
Loyalty schemes...... 103
The loyalty schemes category includes programs based around leisure, shopping and travel ...... 103
AIRMILES, ipoints and Nectar have very different profiles and histories 103
Nectar could develop accident and health policies, but other schemes are too travel-based ......... 104
The Post Office......... 104
The Post Office has potential as a distributor of low cost accident and health products...... 104

GRAPHICS / TABLES
The affinity and partnership marketing universe 7
Entities contacted for the research, segmented by broad category 8
Number of partnerships for accident and health insurance in the UK by product type 14
Affinity and partnership marketing schemes for personal accident insurance in the UK: penetration by type of
partner 16
Affinity and partnership marketing schemes for personal accident insurance in the UK: segmentation by operating
model and competitor 18
Affinity and partnership marketing schemes for private medical insurance in the UK: penetration by type of partner
20
Affinity and partnership marketing schemes for private medical insurance in the UK: segmentation by operating
model and competitor 22
Affinity and partnership marketing schemes for health cash plans in the UK: penetration by type of partner 24
Affinity and partnership marketing schemes for health cash plans in the UK: segmentation by operating model and
competitor 26
Affinity and partnership marketing schemes for dental insurance in the UK: penetration by type of partner 28
Affinity and partnership marketing schemes for dental insurance in the UK: segmentation by operating model and
competitor 30
Charities offering health cash plans through partnerships 32
Lifestyle organisations offering accident or health insurance through partnerships 34
The top 30 professional associations in the UK ranked by member numbers, 2010 (data) 37
Professional associations offering personal accident insurance: penetration, operating models and share of
partnerships 39
Professional associations offering private medical insurance: penetration, operating models and share of
partnerships 40
Professional associations offering health cash plans: penetration, operating models and share of partnerships 41
Professional associations offering dental insurance: penetration, operating models and share of partnerships 42
Sports organisations offering personal accident insurance: penetration, operating models and share of partnerships
44
Sports organisations offering health insurance through partnerships 45
The top 75 trade associations in the UK ranked by member numbers, 2010 (data) 47
The top 75 trade associations in the UK ranked by member numbers, 2010 (data) (continued) 48
Trade associations offering personal accident insurance: penetration, operating models and share of partnerships
50
Trade associations offering private medical insurance: penetration, operating models and share of partnerships 51
Trade associations offering health cash plans: penetration, operating models and share of partnerships 52
Trade associations offering dental insurance: penetration, operating models and share of partnerships 53
The top 40 trade unions in the UK ranked by member numbers, 2010 (data) 55
Trade unions offering personal accident insurance: penetration, operating models and share of partnerships 57
Trade unions offering private medical insurance: penetration, operating models and share of partnerships 58
Trade unions offering health cash plans: penetration, operating models and share of partnerships 60
Trade unions offering dental insurance through partnerships 61
Universities offering private medical insurance through partnerships 62
Banks offering accident or health insurance through partnerships 65
Building societies offering health cash plans through partnerships 66
The top 20 credit unions in the UK ranked by member numbers (data) 68
Credit unions offering health cash plans through partnerships 69
The top 25 friendly societies in the UK ranked by member numbers, 2008 (data) 71
Friendly societies offering health insurance through partnerships 72
Insurers offering private medical insurance: penetration, operating models and share of partnerships
Insurers offering accident or health insurance through partnerships 75
Online aggregators and brokers offering private medical insurance: penetration, operating models and share of
partnerships 77
Online aggregators and brokers offering accident or health insurance through partnerships 78
Specialized lenders offering private medical insurance through partnerships 82
Automotive associations offering accident or health insurance through partnerships 86
Football clubs offering accident or health insurance through partnerships 91
Internet, media and telecoms entities offering private medical insurance: penetration, operating models and share
of partnerships 94
Internet, media and telecoms entities offering accident or health insurance through partnerships 95
Online price comparison sites offering health insurance through partnerships 97
Supermarkets offering accident or health insurance through partnerships 99
Branded conglomerates offering health insurance through partnerships 103
Loyalty schemes offering accident insurance through partnerships 104

Custom Research :

Product Id : 101303