Affinity and Partnership Marketing in UK Motor and Breakdown Recovery Insurance  
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Affinity and Partnership Marketing in UK Motor and Breakdown Recovery Insurance

TABLE OF CONTENTS:

0.0 EXECUTIVE SUMMARY2
Research background and structure2
Over a half of organisations surveyed in eight sub-categories offer motor insurance2
with the vast majority of programs identified now utilising a brokerage operating model3
albeit the leading providers in the affinity marketplace include underwriters as well as brokers3
Most schemes for breakdown recovery insurance are placed directly with the ultimate provider3
with a number of smaller assistance firms challenging the dominance of the AA and the RAC3
A variety of competitors are well-placed to profit from the likely future trends in affinity marketing4
and there is scope for comparing developments in the UK with those in cont Europe4

1.0 INTRODUCTION6
Finaccord6
UK affinity and partnership marketing publications6
Other UK consumer research publications6
PartnerBASE™7
Definitions7
Rationale8
The channels used to distribute financial products and services in the UK continue to proliferate8
with on-line affinity and partnership marketing having growing rapidly in importance of late8
Methodology10

2.0 MARKET OVERVIEW13
Affinities and partnerships in UK motor and breakdown recovery insurance13
Finaccord’s research identifies 339 current affinity schemes for promoting motor insurance13
of which a majority are now based around brokerage or ‘open architecture’ solutions15
Breakdown recovery insurance is sold by at least a proportion of 24 types of affinity partner17
with the AA and RAC combined accounting directly for over 40% of the programs traced19

3.0 NOT-FOR-PROFIT AFFINITY GROUPS21
31 Charities21
Introduction21
Analysis of partnerships21
Motor insurance sold through charities works most effectively when there is a clear rationale21
although pure revenue generation can be an objective in its own right21
Just two charities maintain stand-alone agreements for road assistance23
and the company is interested in working with suppliers that fulfil a variety of criteria24
intune is employing a multi-channel distribution strategy including the charity’s high street outlets24
as it seeks to reach an operating profit of £15 million per annum by 201224
32 Professional associations25
Introduction25
Over 50 professional associations possess in excess of 5,000 individual members25
Analysis of partnerships28
The vast majority of professional associations offering motor insurance do so through a broker28
with Parliament Hill having expanded its roster of member benefits clients to 11 associations28
A further four brokers each claim to more than one deal in the professional association segment28
The RAC maintains direct, exclusive relationships with a quartet of professional associations30
33 Sports organisations31
Introduction31
Analysis of partnerships31
Several affinity deals are in place for one or both of motor and breakdown recovery insurance31
34 Trade associations33
Introduction33
Analysis of partnerships35
Personal lines are sometimes offered as a ‘carry over’ from commercial insurance schemes35
which signifies that this is a field in which relationships are dominated by insurance brokers35
For breakdown recovery insurance, RAC is affiliated to several associations through LogBuy37
35 Trade unions39
Introduction39
Analysis of partnerships41
LV=, Norwich Union and UIA are the foremost providers of motor insurance to trade unions41
although a number of unions prefer to collaborate with companies outside of the leading trio41
Britannia Rescue lays claim to the highest number of exclusive deals for road assistance43
36 Other not-for-profit affinity groups44
Introduction44
Lifestyle organisations44
A number of schemes for motor-related policies are in evidence among lifestyle organisaitons44
Political parties45
Both the Greens and the Liberal Democrats tie with the Environmental Transport Association45

4.0 FINANCIAL PARTNERS47
41 Banks47
Introduction47
Analysis of partnerships48
A number of significant retail banking brands do not currently promote motor insurance48
Through a brace of deals with banks, Equity Insurance Brokers entered this sector in 200648
Stand-alone provision of breakdown recovery insurance by banks has declined50
42 Building societies51
Introduction51
Analysis of partnerships51
Building society involvement in motor insurance distribution has increased in recent years51
largely driven by brokers such as Endsleigh, Equity Insurance Brokers and Insure & Go51
43 Credit cards and premium accounts54
Introduction54
Analysis of partnerships54
A majority of premium accounts offered by banks in the UK include free road assistance54
44 Credit unions56
Introduction56
Analysis of partnerships57
Heath Lambert accesses the credit union market as the approved supplier of CUNA Mutual57
45 Friendly societies59
Introduction59
Analysis of partnerships60
Only a handful of friendly societies offer motor insurance to their customers60
46 Insurers61
Introduction61
Analysis of partnerships62
Six insurance companies are identifiable as offering white-labelled motor insurance policies62
RAC and Green Flag are the assistance providers most commonly used by motor insurers64
although both Europ Assistance and Inter Partner Assistance have picked up external deals64
47 On-line aggregators and brokers66
Introduction66
Analysis of partnerships66
BISL / comparethemarketcom and Insurancewidecom are the foremost protagonists66
although a clutch of other entities are also active as quotation system providers in this sector66
Europ Assistance is linked directly to each of MRL Insurance Direct, Quoteline Direct and RIAS68
48 Specialised lenders69
Introduction69
Analysis of partnerships70
Motor insurance is distributed only four of the specialised lenders surveyed70

5.0 COMMERCIAL ENTITIES72
51 Automotive associations72
Introduction72
Analysis of partnerships73
The partnership between the csma and LV= has been in place for over 80 years73
and has helped to facilitate the transfer of ownership of Britannia Rescue from csma to LV=74
52 Automotive dealers, repair shops and supermarkets75
Introduction75
Analysis of partnerships76
Many automotive dealerships owe their survival to revenues derived from financial services76
and a number of firms in this category have created group-wide insurance distribution deals76
The AA and the RAC possess the most group-wide deals albeit Kwik-Fit works with Call Assist78
53 Automotive manufacturers79
Introduction79
Analysis of partnerships79
The vast majority of automotive brands operate approved schemes for motor insurance79
with a number of important affinity mandates having changed in recent months79
Three providers dominate the market for manufacturer-branded road assistance81
54 Cricket and rugby clubs82
Introduction82
Analysis of partnerships82
Cricket and rugby clubs are completely absent from affinity marketing of motor insurance82
albeit both cricket and rugby attract sponsors from the financial services sector82
55 Football clubs83
Introduction83
Analysis of partnerships84
Affinity propositions in motor insurance continue to be limited to a fairly small number of clubs84
with Endsleigh having emerged as the main protagonist by means of its links with four clubs84
56 Internet, media and telecoms entities86
Introduction86
Analysis of partnerships87
Insurancewidecom and Moneysupermarketcom account for a majority of media affinities87
although Confusedcom is one of a number of players that is also exploring this arena87
For breakdown recovery insurance, Auto Trader retains a traditional affinity link with the RAC89
57 On-line price comparison providers90
Introduction90
Analysis of partnerships91
A number of on-line price comparison providers offer own-brand insurance searching facilities91
58 Retailers92
Introduction92
Analysis of partnerships93
Many of the UK’s major retailing brands are being leveraged to promote motor insurance93
with Tesco having acknowledged the changing landscape by launching Tesco Compare93
Greenbee will allow the John Lewis Partnership to expand its share of total client expenditure94
Fit with the values of the John Lewis Partnership has been key to selection of affinity partners94
Several retailers also promote breakdown recovery insurance on a stand-alone basis96
59 Other commercial entities97
Introduction97
Branded conglomerates97
Saga and Virgin leverage their brands across the full consumer financial services spectrum97
with Saga having rolled out a price comparison site for motor insurance in August 200797
Loyalty schemes98
The loyalty schemes category extends to a range of diverse travel and other reward programs98
with several offering members the chance points through purchase of motor insurance98
AIRMILES reconfigures its affinity strategy by forging a new link with Lloyds TSB99
Delivering memorable experiences continues to be key to the AIRMILES proposition99
Lloyds TSB hopes to leverage the relationship across a range of financial services100
AIRMILES has bolstered its range of family-oriented redemption options100
and is also in the process of rolling out a policy asserting its ‘green’ credentials100
The Post Office100
The Post Office is seeking to grow its total portfolio of insurance policies to two million by 2010100

6.0 EUROPEAN INNOVATIONS103
Introduction103
Events in affinity and partnership marketing in Europe, 2006 and 2007103
Winter 2006103
AEGON expands bancassurance reach in Spain through link with local savings bank103
Fondiaria SAI firms up link with Banca Popolare di Milano for bancassurance venture103
Elvia reinforces position in travel insurance sector through new distribution deals104
Estonian bank diversifies into non-life bancassurance by establishing captive company104
AIB and Aviva finalise Irish bancassurance deal by combining life insurance firms104
AXA and Adeslas co-operate for health insurance distribution in Spain105
Cattolica and Banca Lombarda extend life insurance distribution tie to 2010105
French banking and insurance partners pilot Séréna personal assistance platform105
Spring 2006105
Spanish arm of CIGNA launches health insurance through Travel Club loyalty program105
Fortis and An Post confirm Irish financial services joint venture106
MACIF and MNRA create affinity programs for small businesses in France106
Mapfre and Caja de Madrid extend scope of co-operation to automotive finance106
Proteq ties with leading Dutch pharmacy chain for affinity insurance venture106
ESFG and Crédit Agricole strengthen Portuguese bancassurance ties106
Aon and Delta Lloyd join forces for affinity insurance venture in the Netherlands107
Summer 2006107
Fondiaria and Capitalia link for non-life bancassurance joint venture in Italy107
Mondial Assistance renews international assistance contract with Chrysler Jeep107
Cattolica strengthens strategic bancassurance tie with BPVN in Italy107
CNP launches new permanent disability and long-term care contract with ASAC-FAPES107
BBVA and Sanitas combine in Spanish health insurance distribution deal108
AXA seals affinity insurance tie with Bertelsmann media club in Germany108
CNP extends major bancassurance deals in France through to end 2015108
Winterthur and Sanitas agree tie for health insurance distribution in Switzerland108
Europäische expands card-related travel insurance deals in Germany108
Autumn 2006108
Aon Italia rolls out new propositions for professional affinity partner108
AXA buys major Greek bancassurance protagonist for €255 million109
French mutuals tie for retirement savings cross-selling initiative109
BBVA and Willis link for high net worth property insurance venture in Spain109
Uniqa commences bancassurance joint venture in Ukraine with Credo-Classic109
German catalogue retailer commences insurance marketing venture110
AXA replaces Talanx as SEB’s new bancassurance partner in Germany110
CNP’s life assistance arm forges tie with Chèque Domicile in France110
Santander Consumer Bank improves motor insurance offer for German car buyers110
Winter 2007111
Zurich seals new manufacturer motor insurance deal with Suzuki in Germany111
AEGON forges new bancassurance link with Banca Transilvania in Romania111
a distribution strategy also pursued by Aviva in the same country with Finansbank111
CIGNA targets marine sports club members with health insurance proposition in Spain111
Innovative distribution deals assist Spanish insurer Mapfre at home and abroad111
French affinity broker launches new insurance policy through AOL link112
AEGON and ERGO tie for pensions cross-selling agreement in Poland112
Mapfre takes 50% stake in Spanish savings bank insurance unit112
Cattolica finalises bancassurance agreement with Banca Popolare di Vicenza112
Mondial Assistance establishes distribution agreement with Sanyres in Spain113
VIVAS Health secures distribution link with Hibernian Direct in Ireland113
Tie with statutory health insurer in Germany pays dividends for HUK Coburg113
Caisses d’Épargne and MACIF roll out individual health insurance contracts in France114
Generali acquires bancassurance companies in Austria from BAWAG PSK114
Spring 2007114
ADAC and Zurich disclose launch joint venture insurance company in Germany114
Mapfre seals major bancassurance deals with Bankinter and BBVA in Spain114
Folksam and Swedbank initiate new bancassurance collaboration in Sweden115
AXA acquires stakes in Monte dei Paschi di Siena bancassurance firms115
Allianz links with Ferrari for car insurance policies in Germany115
Groupe Caisse d’Épargne and HSBC assume control of French bancassurance firms115
AIB kicks off on-line motor insurance venture with Hibernian in Ireland115
Fondiaria SAI forges Italian bancassurance joint venture with Banca Italease115
Summer 2007116
Generali and leading fuel retailer link for affinity tie in German insurance116
Aviva rolls out a trio of new bancassurance deals in Italy, Poland and Spain116
AEGON and Mapfre finalise bancassurance agreements with Spanish savings banks117
Vienna Insurance Group links with OMV in ten countries in Central Europe117
La Caixa buys 50% stake held by Fortis in long-standing Spanish joint venture117
Deutsche Postbank and Talanx extend German bancassurance link for 15 years117
ACE European Group sets up life company for continental affinity insurance initiatives118
National Suisse and Coop Bank agree insurance co-marketing initiative118
Sogecap commences bancassurance operations in Bulgaria and Greece118
Groupama initiates link with integrated Internet and telecoms provider in France118
Intesa Sanpaolo rolls out new approach to bancassurance in domestic market118
Citroën entrusts own-brand road assistance service to Mondial Assistance119
ING takes control of Greek bancassurance joint venture as a part of ten year deal119
Royal & SunAlliance targets Eastern Europe and Russia through GDII joint venture119
Crédit Agricole buys 60% stake in non-life bancassurance entity from AGF120
Generali and PPF Group commence joint venture deal in Central and Eastern Europe120
Banco Popolare and Fondiaria SAI finalise new bancassurance joint venture in Italy120
Autumn 2007120
Zurich links with TomTom for Europe-wide motor insurance distribution venture120
Mondial Assistance secures international travel insurance ties with Eurostar and KLM120
Genertel signs affinity insurance agreement with low-cost airline in Italy121

Groupama forges joint venture with software house for co-marketing in France and abroad121
If P&C plans tie with Finnish retailer’s loyalty program from June 2008 onwards121
Allianz Suisse initiates manufacturer-branded insurance co-operation with Volkswagen121
Deutsche Postbank secures non-life bancassurance agreement with HUK-Coburg122

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 motor insurance in the UK: penetration by type of partner 14
Affinity and partnership marketing schemes for motor ins in the UK: segmentation by op model and competitor 16
Affinity and partnership marketing schemes for breakdown recovery ins in the UK: pen by type of partner 18
Affinity / partner Mktg schemes for breakdown recovery ins in the UK: segment by op model and competitor 19
Charities offering motor insurance: penetration, operating models and partner market shares, 2007 22
Charities offering breakdown recovery insurance through partnerships, 2007 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 motor insurance: penetration, operating models and partner market shares 29
Professional associations offering breakdown recovery ins: penetration, op models and partner market shares 30
Sports organisations offering motor and breakdown recovery insurance through partnerships 32
Ranking of the top 50 trade associations in the UK by actual or approximate number of members 34
Trade associations offering motor insurance: penetration, operating models and partner market shares 36
Trade associations offering breakdown recovery ins: penetration, operating models and partner market shares 38
Ranking of trade unions in the UK by actual or approximate number of members 40
Trade unions offering motor insurance: penetration, operating models and partner market shares 42
Trade unions offering breakdown recovery insurance: penetration, operating models and partner market shares 43
Lifestyle organisations offering motor and breakdown recovery insurance through partnerships 44
Political parties offering motor and breakdown recovery insurance through partnerships 45
Banks offering motor insurance: penetration, operating models and partner market shares 49
Banks offering breakdown recovery insurance through partnerships 50
Building societies offering motor insurance: penetration, operating models and partner market shares 52
Building societies offering breakdown recovery insurance through partnerships 53
Credit cards and premium accounts incorporating breakdown recovery insurance 55
Credit unions offering motor insurance: penetration, operating models and partner market shares 58
Friendly societies offering motor insurance and assistance through partnerships 60
Insurance companies offering motor insurance: penetration, operating models and partner market shares 63
Motor insurance companies offering breakdown recovery ins: pen, op models and partner market shares 65
On-line aggregators and brokers offering motor ins: penetration, operating models and partner market shares 67
On-line aggregators and brokers offering breakdown recovery ins: pen, op models and partner market shares 68
Specialised lenders offering motor insurance: penetration, operating models and partner market shares 70
Automotive associations offering motor insurance through partnerships 73
Automotive associations offering breakdown recovery insurance through partnerships 74
Auto dealers, repair shops and supermarkets offering motor ins: pen, op models and partner market shares 77
Auto dealers, repair shops / supermkts Off breakdown recovery ins: pen, opmodels and partner mkt shares 78
Automotive manufacturers offering motor insurance: penetration, operating models and partner market shares 80
Automotive manufacturers offering breakdown recovery ins: pen, op models and partner market shares 81
Football clubs offering motor insurance: penetration, operating models and partner market shares 85
Internet, media and telecoms entities offering motor ins: penetration, op models and partner market shares 88
Internet, media / telecoms entities off breakdown recovery ins: pen, op models and partner market shares 89
On-line price comparison providers offering motor ins: penetration, op models and partner market shares 91
Retailers offering motor insurance: penetration, operating models and partner market shares 95
Retailers offering breakdown recovery insurance: penetration, operating models and partner market shares 96
Branded conglomerates offering motor and breakdown recovery insurance through partnerships 98
Loyalty schemes offering motor and breakdown recovery insurance through partnerships 99

Custom Research :

Product Id : 101311