Affinity and Partnership Marketing in UK Life Insurance and Pensions  
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Affinity and Partnership Marketing in UK Life Insurance and Pensions

TABLE OF CONTENTS:

00 EXECUTIVE SUMMARY2
Research background and structure 2
Life insurance embraces a variety of different types of investment and protection policy2
A majority of affinity marketing schemes for life insurance are organised through brokers2
although Legal & General maintains the highest outright number of exclusive partnerships3
Insurancewidecom, Moneysupermarketcom and theidolcom are strong among on-line affs3
Over a quarter of organisations surveyed in seven sub-categories offer retirement savings…4
with the duo of LV= and LighthouseTemple holding the highest outright number of partners4
Key success factors for affinity marketing in life insurance and pensions vary by type of product…4
and there is scope for comparing developments in the UK with those in continental Europe4

1.0 INTRODUCTION6
Finaccord6
UK affinity and partnership marketing publications6
Other UK consumer research publications 6
PartnerBASE™7
Definitions7
Rationale 8
The channels used to distribute financial products and services in the UK continue to proliferate…8
with on-line affinity and partnership marketing having growing rapidly in importance of late 8
Methodology10

2.0 MARKET OVERVIEW13
Affinities and partnerships in UK life insurance and pensions13
Over 10% of organisations surveyed in 14 sub-categories promote life insurance…13
with most schemes organised through brokers rather than placed directly with life offices 15
Insurancewidecom, Moneysupermarketcom and theidolcom are strong among on-line affs15
Affinity programs for pension plans are less widespread than those for life insurance 17
The duo of LV= and LighthouseTemple maintain exclusive relationships in three main areas 19

30 NOT-FOR-PROFIT AFFINITY GROUPS21
31 Charities21
Introduction21
Analysis of partnerships 21
The main focus lies upon specialist life insurance marketed by a handful of medical charities21
Just two charities have any involvement in the intermediation of pensions for supporters 23
intune’s main target market is the affluent over-50 age group served by Saga…23
and the company is interested in working with suppliers that fulfil a variety of criteria23
intune is employing a multi-channel distribution strategy including the charity’s high street outlets 24
as it seeks to reach an operating profit of £15 million per annum by 2012 24
32 Professional associations 25
Introduction25
Over 50 professional associations possess in excess of 5,000 individual members 25
Analysis of partnerships 28
The vast majority of professional associations offering life insurance do so through a broker…28
with Parliament Hill having expanded its roster of member benefits clients to 11 associations28
A further 16 intermediaries each claim at least one deal in the professional association segment28
A number of partnerships have been created that are specific to personal / stakeholder pensions30
33 Sports organisations 31
Introduction31
Analysis of partnerships 31
The provision of life insurance through sports organisations is limited to two specialised schemes31
34 Trade associations32
Introduction32
Analysis of partnerships 34
CBG Financial Services possesses exclusive distribution links with seven trade associations…34
and a further four providers have established two or more relationships for life insurance34
50 trade associations continue to operate schemes for personal or stakeholder pensions36
35 Trade unions 38
Introduction38
Analysis of partnerships 40
LighthouseTemple achieves prominence by virtue of the link forged with LV= in April 2007…40
with no other provider of life insurance holding more than one exclusive union relationship40
An important stand-alone initiative in the field of pensions is the TUC’s own stakeholder scheme42

4.0 FINANCIAL PARTNERS 44
41 Banks44
Introduction44
Analysis of partnerships 45
Banks adhere to a variety of bancassurance models for the provision of life insurance…45
although only Barclays appears to have fully exploited the depolarisation opportunity45
Legal & General continues to account for the majority of tied agency relationships45
There are some v in the operating models and partnerships used for retirement products47
42 Building societies48
Introduction48
Analysis of partnerships 49
Building societies show an increasing preference to use multi-tied and brokerage models 49
Norwich Union remains a market leader although its number of exclusive ties has halved49
AXA Sun Life enjoys links with both of the UK’s two largest building societies…49
and Legal & General has consolidated its position by acquiring Nationwide Life 49
Penetration rates for personal / stakeholder pensions fall below those for life insurance 51
43 Credit unions52
Introduction52
Analysis of partnerships 53
Norwich Union accesses the credit union market as the approved supplier of CUNA Mutual 53
44 Friendly societies 55
Introduction55
Analysis of partnerships 56
A number of friendly societies have begun collaborating with external providers56
46 Insurance companies 57
Introduction57
Analysis of partnerships 58
Prudential and Discovery aim to shake up the UK protection market through a new joint venture 58
47 On-line aggregators and brokers 59
Introduction59
Analysis of partnerships 59
theidolcom provides the on-line quotation system for a number of partners in this sector…59
although a clutch of other entities, including LifeSearch, are also competing in this field59
Few on-line aggs or brokers offer searching facilities for personal or stakeholder pensions 60
48 Specialised lenders61
Introduction61
Analysis of partnerships 62
There is little appetite among specialised lenders for selling non-creditor life insurance contracts 62

5.0 COMMERCIAL ENTITIES64
51 Airlines 64
Introduction64
Analysis of partnerships 64
Only Ryanair is attempting to stretch its brand into life insurance64
52 Automotive associations 65
Introduction65
Analysis of partnerships 66
LV= is working to an increasing extent with LighthouseTemple in the domain of financial advice66
53 Automotive dealers, repair shops and supermarkets67
Introduction67
Analysis of partnerships 67
Many automotive dealerships owe their survival to revenues derived from financial services…67
although with one significant exception, household insurance does not enter the equation67
54 Cricket and rugby clubs69
Introduction69
Analysis of partnerships 69
Cricket and rugby clubs have no involvement in either life insurance or personal pensions…69
albeit both cricket and rugby attract sponsors from the financial services sector 69
55 Estate agents 70
Introduction70
Analysis of partnerships 71
Legal & General continues to hold the largest number of exclusive estate agency partnerships…71
although Friends Provident is the sole provider of to the UK’s largest estate agency chain71
A number of estate agents utilise intermediaries affiliated to Zurich’s Openwork network71
Most on-line estate agency portals prefer to carry adverts rather than acting as affinity partners71
56 Football clubs 73
Introduction73
Analysis of partnerships 74
A handful of football clubs have established financial advisory services on an affinity basis74
57 Internet, media and telecoms entities76
Introduction76
Analysis of partnerships 77
Insurancewidecom and Moneysupermarketcom account for a majority of media affinities…77
although Torquil Clark, in particular, also operates several searching facilities in this field77
Affinity marketing relationships for personal and stakeholder pensions are somewhat different78
58 On-line price comparison providers 79
Introduction79
Analysis of partnerships 80
Only two providers have established searching facilities for life insurance under their own brand80
59 Retailers81
Introduction81
Analysis of partnerships 82
A number of the UK’s major retailing brands are being leveraged to promote life insurance82
with ASDA having opted for a brokerage model by means of its relationship with LifeSearch82
Tesco may follow suit although its Tesco Compare concept currently focuses on motor insurance82
Greenbee will allow the John Lewis Partnership to expand its share of total client expenditure 83
Fit with the values of the John Lewis Partnership has been key to selection of affinity partners84
510 Other commercial entities85
Introduction85
Branded conglomerates85
Saga and Virgin leverage their brands across the full consumer financial services spectrum…85
with Saga having rolled out a price comparison site for motor insurance in August 2007 85
Loyalty schemes86
The loyalty schemes category extends to a range of diverse travel and other reward programs…86
although only ipoints offers the chance to earn points through purchase of life insurance 86
The Post Office87
The Post Office is seeking to grow its total portfolio of insurance policies to two million by 201087

60 EUROPEAN INNOVATIONS89
Introduction89
Events in affinity and partnership marketing in Europe, 2006 and 200789
Winter 200689
AEGON expands bancassurance reach in Spain through link with local savings bank89
Fondiaria SAI firms up link with Banca Popolare di Milano for bancassurance venture 89
Elvia reinforces position in travel insurance sector through new distribution deals 90
Estonian bank diversifies into non-life bancassurance by establishing captive company90
AIB and Aviva finalise Irish bancassurance deal by combining life insurance firms90
AXA and Adeslas co-operate for health insurance distribution in Spain 91
Cattolica and Banca Lombarda extend life insurance distribution tie to 201091
French banking and insurance partners pilot Séréna personal assistance platform91
Spring 200691
Spanish arm of CIGNA launches health insurance through Travel Club loyalty program91
Fortis and An Post confirm Irish financial services joint venture 92
MACIF and MNRA create affinity programs for small businesses in France92
Mapfre and Caja de Madrid extend scope of co-operation to automotive finance 92
Proteq ties with leading Dutch pharmacy chain for affinity insurance venture 92
ESFG and Crédit Agricole strengthen Portuguese bancassurance ties 92
Aon and Delta Lloyd join forces for affinity insurance venture in the Netherlands93
Summer 2006 93
Fondiaria and Capitalia link for non-life bancassurance joint venture in Italy93
Mondial Assistance renews international assistance contract with Chrysler Jeep 93
Cattolica strengthens strategic bancassurance tie with BPVN in Italy93
CNP launches new permanent disability and long-term care contract with ASAC-FAPES93
BBVA and Sanitas combine in Spanish health insurance distribution deal94
AXA seals affinity insurance tie with Bertelsmann media club in Germany 94
CNP extends major bancassurance deals in France through to end 201594
Winterthur and Sanitas agree tie for health insurance distribution in Switzerland 94
Europäische expands card-related travel insurance deals in Germany94
Autumn 200694
Aon Italia rolls out new propositions for professional affinity partner 94
AXA buys major Greek bancassurance protagonist for €255 million 95
French mutuals tie for retirement savings cross-selling initiative 95
BBVA and Willis link for high net worth property insurance venture in Spain 95
Uniqa commences bancassurance joint venture in Ukraine with Credo-Classic95
German catalogue retailer commences insurance marketing venture96
AXA replaces Talanx as SEB’s new bancassurance partner in Germany96
CNP’s life assistance arm forges tie with Chèque Domicile in France96
Santander Consumer Bank improves motor insurance offer for German car buyers 96
Winter 200797
Zurich seals new manufacturer motor insurance deal with Suzuki in Germany 97
AEGON forges new bancassurance link with Banca Transilvania in Romania97
a distribution strategy also pursued by Aviva in the same country with Finansbank 97
CIGNA targets marine sports club members with health insurance proposition in Spain97
Innovative distribution deals assist Spanish insurer Mapfre at home and abroad97
French affinity broker launches new insurance policy through AOL link 98
AEGON and ERGO tie for pensions cross-selling agreement in Poland98
Mapfre takes 50% stake in Spanish savings bank insurance unit98
Cattolica finalises bancassurance agreement with Banca Popolare di Vicenza98
Mondial Assistance establishes distribution agreement with Sanyres in Spain99
VIVAS Health secures distribution link with Hibernian Direct in Ireland 99
Tie with statutory health insurer in Germany pays dividends for HUK Coburg99
Caisses d’Épargne and MACIF roll out individual health insurance contracts in France 100
Generali acquires bancassurance companies in Austria from BAWAG PSK 100
Spring 2007 100
ADAC and Zurich disclose launch joint venture insurance company in Germany 100
Mapfre seals major bancassurance deals with Bankinter and BBVA in Spain 100
Folksam and Swedbank initiate new bancassurance collaboration in Sweden 101
AXA acquires stakes in Monte dei Paschi di Siena bancassurance firms 101
Allianz links with Ferrari for car insurance policies in Germany 101
Groupe Caisse d’Épargne and HSBC assume control of French bancassurance firms 101
AIB kicks off on-line motor insurance venture with Hibernian in Ireland 101
Fondiaria SAI forges Italian bancassurance joint venture with Banca Italease 101
Summer 2007 102
Generali and leading fuel retailer link for affinity tie in German insurance 102
Aviva rolls out a trio of new bancassurance deals in Italy, Poland and Spain 102
AEGON and Mapfre finalise bancassurance agreements with Spanish savings banks 103
Vienna Insurance Group links with OMV in ten countries in Central Europe 103
La Caixa buys 50% stake held by Fortis in long-standing Spanish joint venture 103
Deutsche Postbank and Talanx extend German bancassurance link for 15 years 103
ACE European Group sets up life company for continental affinity insurance initiatives 104
National Suisse and Coop Bank agree insurance co-marketing initiative 104
Sogecap commences bancassurance operations in Bulgaria and Greece 104
Groupama initiates link with integrated Internet and telecoms provider in France 104
Intesa Sanpaolo rolls out new approach to bancassurance in domestic market 104
Citroën entrusts own-brand road assistance service to Mondial Assistance 105
ING takes control of Greek bancassurance joint venture as a part of ten year deal 105
Royal & SunAlliance targets Eastern Europe and Russia through GDII joint venture 105
Crédit Agricole buys 60% stake in non-life bancassurance entity from AGF 106
Generali and PPF Group commence joint venture deal in Central and Eastern Europe 106
Banco Popolare and Fondiaria SAI finalise new bancassurance joint venture in Italy 106
Autumn 2007 106
Zurich links with TomTom for Europe-wide motor insurance distribution venture 106
Mondial Assistance secures international travel insurance ties with Eurostar and KLM 106
Genertel signs affinity insurance agreement with low-cost airline in Italy 107
Groupama forges joint venture with software house for co-marketing in France and abroad 107
If P&C plans tie with Finnish retailer’s loyalty program from June 2008 onwards 107
Allianz Suisse initiates manufacturer-branded insurance co-operation with Volkswagen 107
Deutsche Postbank secures non-life bancassurance agreement with HUK-Coburg 108

GRAPHICS / TABLES

The affinity and partnership marketing universe 9
Entities contacted for the research, segmented by broad category 10
Affinity and partnership marketing schemes for life insurance in the UK: penetration by type of partner 14
Affinity and partnership marketing schemes for life ins in the UK: segmentation by op model and competitor 16
Affinity and partnership marketing schemes for pers / stake pensions in the UK: penetration by type of partner 18
Affinity and partnership mktg schemes for pers / stake pens in the UK: segment by op model and comp 20
Charities offering life insurance: penetration, operating models and partner market shares 22
Charities offering personal / stakeholder pensions through partnerships 23
Ranking of professional associations in the UK by actual or approximate number of members 26
Ranking of professional associations in the UK by actual or approximate number of members (continued) 27
Professional associations offering life insurance: penetration, operating models and partner market shares 29
Professional associations offering pers / stake pens: penetration, operating models and partner market shares 30
Sports organisations offering life insurance through partnerships 31
Ranking of the top 50 trade associations in the UK by actual or approximate number of members 33
Trade associations offering life insurance: penetration, operating models and partner market shares 35
Trade associations offering pers / stake pensions: penetration, operating models and partner market shares 37
Ranking of trade unions in the UK by actual or approximate number of members 39
Trade unions offering life insurance: penetration, operating models and partner market shares 41
Trade unions offering pers / stake pensions: penetration, operating models and partner market shares 42
Banks offering life insurance: penetration, operating models and partner market shares 46
Banks offering personal / stakeholder pensions: penetration, operating models and partner market shares 47
Building societies offering life insurance: penetration, operating models and partner market shares 50
Building societies offering pers / stake pensions: penetration, operating models and partner market shares 51
Credit unions offering life insurance: penetration, operating models and partner market shares 54
Friendly societies offering life insurance and personal / stakeholder pensions through partnerships 56
Insurance companies offering life insurance and personal / stakeholder pensions through partnerships 58
On-line aggregators and brokers offering life ins: penetration, operating models and partner market shares 60
Specialised lenders offering life insurance through partnerships 62
Airlines offering life insurance through partnerships 64
Automotive associations offering life insurance and personal / stakeholder pensions through partnerships 66
Automotive dealers, repair shops and supermarkets offering life insurance through partnerships 68
Estate agents offering life insurance: penetration, operating models and partner market shares 72
Football clubs offering life insurance and personal / stakeholder pensions through partnerships 75
Internet, media and telecoms entities offering life ins: penetration, operating models and partner market shares 77
Internet, media and telecoms entities offering pers / stake pens: pen, op models and partner market shares 78
On-line price comparison providers offering life insurance through partnerships 80
Retailers offering life insurance through partnerships 83
Branded conglomerates offering life insurance and personal / stakeholder pensions through partnerships 86
Loyalty schemes offering life insurance through partnerships 87

Custom Research :

Product Id : 101309