Affinity and Partnership Marketing in UK Financial Services · The Affinity and Partnership Marketing in UK Financial Services series provides unique insights and detailed intelligence

Affinity and Partnership Marketing in UK Financial Services

© Finaccord, 2015 Web: www.finaccord.com. E-mail: [email protected] 1

Affinity and Partnership Marketing

in UK Financial Services

Series Prospectus

June 2015

http://www.finaccord.com/

mailto:[email protected]



Prospectus contents

Which titles have been published?

What is the research?

What methodology has been used?

How does the sample break down?

What is the difference between the unweighted and weighted analyses of partnerships?

What is the structure of the reports?

What are the key features of the research?

How can the research be used?

How can the Partner BASE™ be used?

Who can use the research?

What are some of the key findings?

What is the cost and format?

How can the research be purchased?

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Which titles have been published?

Finaccord’s Affinity and Partnership Marketing in UK Financial Services series extends to the

following titles:

• Affinity and Partnership Marketing in UK Accident and Health Insurance

• Affinity and Partnership Marketing in UK Household and Home Emergency Insurance

• Affinity and Partnership Marketing in UK Life Insurance, Retirement Products and Financial Advice

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

• Affinity and Partnership Marketing in UK Travel Insurance

Separate tables of contents are available for each of these studies on the relevant pages of the Fin

accord website with this single marketing prospectus covering the entire series.

In addition, a further report titled Affinity and Partnership Marketing in UK Commercial Non-Life

Insurance is also available, for which a separate report prospectus and table of contents can be

obtained, as is a distinct series titled UK Niche Insurance: Market Dynamics, Affinities and

Partnerships, again accompanied by its own series prospectus and tables of contents.





What is the research?

The Affinity and Partnership Marketing in UK Financial Services series provides unique insights and

detailed intelligence into developments and opportunities in affinity and partnership marketing in

insurance and other financial services in the following broad and specific partner categories:

• not-for-profit affinity partners - charities; housing associations; lifestyle organisations; professional

associations; sports organisations; trade associations; trade unions; and universities;

• financial institutions - banks; building societies; credit and charge cards; credit unions; friendly

societies; insurers (tied / multi-tied intermediaries); insurers (underwriters); online aggregators and

brokers; packaged accounts; and specialised lenders;

• commercial partners - airlines; automotive associations; automotive manufacturers; coalition

loyalty schemes and frequent flyer programs; estate agency and property service firms; football and

rugby clubs; internet, media and telecoms entities; online price comparison providers; retailers;

travel companies; and utilities and gas boiler manufacturers.





What methodology has been used?

The survey of 2,555 actual and potential affinity partners was carried out between February and May

2015 and covers the vast majority of viable affinity distributors in the UK consumer financial services

market. The research embraces the following information:

• for each affinity group or partner considered, whether it offers the insurance or other financial

service in question;

• if provided, whether the product or service is offered through one or more partnerships with external

companies, by means of a sister or captive company, or on an in-house basis;

• if provided through one or more partnerships, the identity of the partner(s) and the classification of

the partnership(s).





How does the sample break down?

Commercial partners, 690 - of which

220 travel companies, 82 internet,

media and telecoms entities, 80

retailers, 76 football and rugby clubs,

47 automotive manufacturers, 65

estate agency and property services

firms, 55 utilities and gas boiler

manufacturers, 20 online price

comparison providers, 26 airlines, ten

coalition loyalty schemes and

frequent flyer programs and nine

automotive associations.

Not-for-profit affinity partners, 1,232 - of

which 702 trade associations, 144

professional associations, 87 trade

unions, 110 charities, 56 sports

organisations, 50 housing associations,

45 universities and 38 lifestyle

organisations .

633 financial partners of which 199

individual credit and charge cards, 149

insurers (splitting between 83

underwriters and 66 tied or multi-tied

intermediaries), 57 specialised lenders,

54 banks, 49 building societies, 41

online aggregators and brokers, 35

credit unions, 25 friendly societies and

24 packaged accounts.





What is the difference between the unweighted

and weighted analyses of partnerships?

Finaccord's new series of studies on this subject incorporates a new analysis whereby it identifies not

only the financial product providers with the most partnerships (overall, and within each category), but

also computes 'weighted provider shares of partnerships' in order to highlight the providers that are

likely to hold the most valuable relationships given the characteristics of their partners.

Within affinity and partner categories (e.g. for banks in isolation), it does this by weighting

partnerships in accordance with the UK traffic ranking for each organisation's website. Then, across

all distributor categories combined, it also takes into account the approximate distribution share of the

financial service in question of the category to which the organisations belong, as measured by

Finaccord's Channel Metrics consumer research, and additionally incorporates the number of

organisations in the category that offer the financial service in question so that the distribution share

is divided across the number of active organisations. (The precise formulae and workings used can

be obtained from Fin accord if needed.)

An example of the impact of this approach, illustrating the differences that can emerge between the

unweighted and weighted analyses of partnerships, is presented on the following slide.





What is the difference between the unweighted

and weighted analyses of partnerships? (cont.)

UK Insurance, 89.2%

RSA, 5.2%

Arthur J Gallagher, 3.7% other, 1.9%

Building societies offering household insurance

Unweighted provider share of partnerships Weighted provider share of partnerships

UK Insurance dominates

the weighted analysis

because of its partnership

with the Nationwide (and

its subsidiary brands), by

far the largest building

society group in the UK.Source: Fin accord Partner

BASE

RSA, 46.2%

Arthur J Gallagher,

23.1%

Legal & General,

10.3%

Aviva, 7.7%

Ages, 5.1%Thomas, Carroll P.C., 2.6%

UK Insurance, 2.6%Tower gate Underwriting, 2.6%





What is the structure of the reports?

0. Executive Summary: providing a concise evaluation of the principal findings of the report.

1. Introduction: offering rationale for the report, a detailed description of the methodology and associated definitions.

2. Market Overview: a ‘bird’s eye’ overview of the sector including provision rates by category of distributor for each

product or service in scope plus analyses of both the unweighted and weighted share of partnerships of providers

across all types of distributor combined.

3. Not-for-Profit Affinity Partners: a detailed investigation into the current status of partnerships for the product(s)

and service(s) in question analysed separately (where relevant) for each of: charities; housing associations; lifestyle

organisations; professional associations; sports associations; trade associations; trade unions; and universities.

4. Financial Partners: as for chapter 3 but with separate analysis (where relevant) of: banks; building societies;

credit and charge cards; credit unions; friendly societies; insurers (tied / multi-tied intermediaries); insurers

(underwriters); online aggregators and brokers; packaged accounts; and specialised lenders.

5. Commercial Partners: as for chapter 3 but with separate analysis (where relevant) of: airlines; automotive

associations; automotive manufacturers; coalition loyalty schemes and frequent flyer programs; estate agency and

property service firms; football and rugby clubs; internet, media and telecoms entities; online price comparison

providers; retailers; travel companies; and utilities and gas boiler manufacturers.





What are the key features of the series?

Key features of this series include:

• five separate studies covering the following fields: accident and health insurance; household and

home emergency insurance; life insurance, retirement products and financial advice; motor and

breakdown recovery insurance; and travel insurance;

• results drawn from an extensive survey of 2,555 affinity and partnership marketing distributors for

insurance and other financial services in the UK;

• analyses of the share of partnerships of providers for each distributor category and across all

categories combined on both an unweighted and weighted basis;

• accompanying Partner BASE™ database with each report, providing a complete listing of all affinity

and partnership marketing schemes in place, searchable by partner type, operating model and

product provider.





How can the research be used?

You may be able to use this series of reports and the Partner BASE™ databases that accompany it

in one or more of the following ways:

• drill down into the detail lying behind affinity and partnership marketing schemes for the specific

insurance and other financial products in which you are interested;

• gain access to research that chronicles the vast majority of affinity and partnership marketing

opportunities in mainstream consumer insurance lines in the UK;

• understand not only which providers have secured the most partnerships but which are likely to

hold the most valuable deals for each product or service;

• benchmark the competitive position of your own organisation in affinity and partnership marketing

and spot opportunities for displacing rivals;

• plan your future affinity and partnership marketing strategy armed with the best market and

competitor intelligence available on this subject.




© Finaccord, 2015 Web: www.finaccord.com. E-mail: [email protected]

LIFE INSURANCE, RETIREMENT PRODUCTS AND FINANCIAL ADVICE

Organisation Type Product / service Offered? Operating model Partner(s)

Saffron B.S. Building societies Financial advice Yes External IFA Towergate Financial

Saffron B.S. Building societies Life insurance Yes External IFA + external underwriter Dignity Pre Arrangement, Towergate Financial

Saffron B.S. Building societies Retirement products Yes External IFA Towergate Financial

Saga (Acromas) Insurers - underwriters Financial advice Yes External IFA my wealth (Wealth at Work)

Saga (Acromas) Insurers - underwriters Life insurance Yes Multiple external underwriters Legal & General, Vitality Life

Saga (Acromas) Insurers - underwriters Retirement products Yes Multiple external providers Just Retirement, Legal & General

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How can the Partner BASE™ be used?

Filter by category

Choose product / service Identify partnersLook up specific

affinity partners

Select operating model





Who can use the research?

1. Aggregators, brokers, IFAs and other intermediaries: affinity and partnership marketing

schemes represent a growth opportunity in many of the sectors considered as consumers

migrate to alternative distribution interfaces and channels;

2. Banks and building societies: the reports will provide insights into where banks and building

societies belong in the wider market for insurance partnerships;

3. Insurance companies: understand the prospects for affinity and partnership marketing across

each of the main lines of personal insurance and the preferences of partner organisations

when it comes to solutions based around intermediaries as opposed to direct relationships with

the ultimate product providers;

4. Management consultancies: are you helping an organisation in any of the preceding categories

with its distribution strategy? This research will help you to evaluate the options in affinity and

partnership marketing, saving time and effort on researching the subject yourself.





What are some of the key findings?

Source: Fin accord Partner BASE

1) Across all 2,555 organisations researched, 202 (7.9%) were found to offer private

medical insurance with most of these initiatives organised via an external broker

% of all organisations offering product, and operating models used

100%

80%

60%

40%

20%

0%

Product offered Operating model

(see legend)

Other / undisclosed

Internal aggregator / broker

Captive aggregator / broker

Captive underwriter

External aggregator / broker

External underwriter via external broker

Multiple external underwriters

External underwriter

Internal underwriter





What are some of the key findings? (cont.)

Source: Finaccord PartnerBASE

2) Among the 110 charities surveyed, initiatives are most in evidence for household,

motor and travel insurance but are most scarce for dental and home emergency cover

% of organisations offering product or service

26.4%

9.1%

3.6%

30.9%

20.0%

26.4%

0.9%

5.5%

4.5%

0.9%

6.4%

1.8%

0% 10% 20% 30% 40%

Travel insurance

Retirement products

Private medical insurance

Motor insurance

Life insurance

Household insurance

Home emergency insurance

Health / hospital cash plans

Financial advice

Dental insurance

Breakdown recovery insurance

Accident insurance




© Finaccord, 2015 Web: www.finaccord.com. E-mail: [email protected]

AA, 26.4%

RAC, 21.9%

Green Flag, 11.8%

Britannia Rescue (LV=),

5.1%

Call Assist, 4.3%

Allianz Global Assistance,

4.3%

AXA Assistance,

4.2%

Comparison Creator, 3.3%

other, 18.7%DAS, 10.6%

AA, 10.3%

Autohome Assistance,

9.3%

First Call, 9.0%

HMCA, 9.0%Parliament Hill, 9.0%

RAC, 9.0%

AXA Assistance,

3.4%

other, 30.2%

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What are some of the key findings? (cont.)

Source: Fin accord Partner

BASE

3) When measured on an unweighted basis, partnerships for breakdown recovery insurance

are spread quite evenly among the leading providers although the weighted analysis suggests

that those of the AA and the RAC are with more important organisations for this product

Unweighted provider share of partnerships Weighted provider share of partnerships





What is the cost and format?

Reports in the Affinity and Partnership Marketing in UK Financial Services series are available as

standard PDF documents. The Partner BASE databases that accompany them are in Excel format.

Costs for these studies plus the related title about commercial non-life insurance, are as follows:

* For purchases of multiple reports, a discount scale is available: please contact Finaccord for further details.

# GST at the prevailing rate will be added to the basic price for Singapore-based buyers except for where the request

is for hard copy only. Costs quoted are for a single office, single country licence only. For corporate user licence

options, please see the next slide for further details. Invoices can be paid in EUR or GBP, at the prevailing exchange

rate, if preferred.

REPORT COST *

Affinity and Partnership Marketing in UK Accident and Health Insurance

Affinity and Partnership Marketing in UK Household and Home Emergency Insurance

Affinity and Partnership Marketing in UK Life Insurance, Retirement Products and Financial Advice

Affinity and Partnership Marketing in UK Motor and Breakdown Recovery Insurance

Affinity and Partnership Marketing in UK Travel Insurance

Affinity and Partnership Marketing in UK Commercial Non-Life Insurance

USD 2,095

USD 2,095

USD 2,095

USD 2,095

USD 1,195

USD 2,095





How can the research be purchased?

Simple. Just go to the relevant area of the Finaccord website, create your account (if you do not

have one already) and place your order online. Products paid for online by card will be delivered

immediately by e-mail but please allow up to one working day for delivery by e-mail if you choose to

pay on receipt of invoice.

With regards to the corporate user licence, you will be asked to choose one of the following options:

1. One office, one country: no supplement over and above basic cost of reports ordered

2. Multiple offices, one country: additional 20% over and above basic cost of reports ordered

3. Multiple offices, two to ten countries: additional 50% over and above basic cost of reports ordered

4. Global (unlimited offices in unlimited countries): additional 100% over and above basic cost of reports ordered

Alternatively, you can place an order by sending your request to [email protected], clearly

stating the product(s) required, associated price(s) and billing details for eventual invoice or card

payment receipt.




Affinity and Partnership Marketing in UK Financial Services · The Affinity and Partnership Marketing in UK Financial Services series provides unique insights and detailed intelligence

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