Affinity and Partnership Marketing in UK Life Insurance and Pensions

Table of Contents

• Research background and structure
• Life insurance embraces a variety of different types of investment and protection policy
• A majority of affinity marketing schemes for life insurance are organised through brokers.....
• ..... although Legal & General maintains the highest outright number of exclusive partnerships
• Insurancewide.com, Moneysupermarket.com and theidol.com are strong among on-line affs
• Over a quarter of organisations surveyed in seven sub-categories offer retirement savings.....
• ..... with the duo of LV= and LighthouseTemple holding the highest outright number of partners
• Key success factors for affinity marketing in life insurance and pensions vary by type of product.....
• ..... and there is scope for comparing developments in the UK with those in continental Europe

• Finaccord
• UK affinity and partnership marketing publications
• Other UK consumer research publications
• PartnerBASE™
• Definitions
• Rationale
• The channels used to distribute financial products and services in the UK continue to proliferate.....
• ..... with on-line affinity and partnership marketing having growing rapidly in importance of late
• Methodology

• Affinities and partnerships in UK life insurance and pensions
• Over 10% of organisations surveyed in 14 sub-categories promote life insurance.....
• ..... with most schemes organised through brokers rather than placed directly with life offices
• Insurancewide.com, Moneysupermarket.com and theidol.com are strong among on-line affs
• Affinity programs for pension plans are less widespread than those for life insurance
• The duo of LV= and LighthouseTemple maintain exclusive relationships in three main areas

• 3.1 Charities
• Introduction
• Analysis of partnerships
• The main focus lies upon specialist life insurance marketed by a handful of medical charities
• Just two charities have any involvement in the intermediation of pensions for supporters
• intune' s main target market is the affluent over-50 age group served by Saga.....
• ..... and the company is interested in working with suppliers that fulfil a variety of criteria
• intune is employing a multi-channel distribution strategy including the charity' s high street outlets
• ..... as it seeks to reach an operating profit of £15 million per annum by 2012
• 3.2 Professional associations
• Introduction
• Over 50 professional associations possess in excess of 5,000 individual members
• Analysis of partnerships
• The vast majority of professional associations offering life insurance do so through a broker.....
• ..... with Parliament Hill having expanded its roster of member benefits clients to 11 associations
• A further 16 intermediaries each claim at least one deal in the professional association segment
• A number of partnerships have been created that are specific to personal / stakeholder pensions
• 3.3 Sports organisations
• Introduction
• Analysis of partnerships
• The provision of life insurance through sports organisations is limited to two specialised schemes
• 3.4 Trade associations
• Introduction
• Analysis of partnerships
• CBG Financial Services possesses exclusive distribution links with seven trade associations.....
• ..... and a further four providers have established two or more relationships for life insurance
• 50 trade associations continue to operate schemes for personal or stakeholder pensions
• 3.5 Trade unions
• Introduction
• Analysis of partnerships
• LighthouseTemple achieves prominence by virtue of the link forged with LV= in April 2007.....
• ..... with no other provider of life insurance holding more than one exclusive union relationship
• An important stand-alone initiative in the field of pensions is the TUC' s own stakeholder scheme

• 4.1 Banks
• Introduction
• Analysis of partnerships
• Banks adhere to a variety of bancassurance models for the provision of life insurance.....
• ..... although only Barclays appears to have fully exploited the depolarisation opportunity
• Legal & General continues to account for the majority of tied agency relationships
• There are some v in the operating models and partnerships used for retirement products
• 4.2 Building societies
• Introduction
• Analysis of partnerships
• Building societies show an increasing preference to use multi-tied and brokerage models
• Norwich Union remains a market leader although its number of exclusive ties has halved
• AXA Sun Life enjoys links with both of the UK' s two largest building societies.....
• ..... and Legal & General has consolidated its position by acquiring Nationwide Life
• Penetration rates for personal / stakeholder pensions fall below those for life insurance
• 4.3 Credit unions
• Introduction
• Analysis of partnerships
• Norwich Union accesses the credit union market as the approved supplier of CUNA Mutual
• 4.4 Friendly societies
• Introduction
• Analysis of partnerships
• A number of friendly societies have begun collaborating with external providers
• 4.6 Insurance companies
• Introduction
• Analysis of partnerships
• Prudential and Discovery aim to shake up the UK protection market through a new joint venture
• 4.7 On-line aggregators and brokers
• Introduction
• Analysis of partnerships
• theidol.com provides the on-line quotation system for a number of partners in this sector.....
• ..... although a clutch of other entities, including LifeSearch, are also competing in this field
• Few on-line aggs. or brokers offer searching facilities for personal or stakeholder pensions
• 4.8 Specialised lenders
• Introduction
• Analysis of partnerships
• There is little appetite among specialised lenders for selling non-creditor life insurance contracts

• 5.1 Airlines
• Introduction
• Analysis of partnerships
• Only Ryanair is attempting to stretch its brand into life insurance
• 5.2 Automotive associations
• Introduction
• Analysis of partnerships
• LV= is working to an increasing extent with LighthouseTemple in the domain of financial advice
• 5.3 Automotive dealers, repair shops and supermarkets
• Introduction
• Analysis of partnerships
• Many automotive dealerships owe their survival to revenues derived from financial services.....
• ..... although with one significant exception, household insurance does not enter the equation
• 5.4 Cricket and rugby clubs
• Introduction
• Analysis of partnerships
• Cricket and rugby clubs have no involvement in either life insurance or personal pensions.....
• ..... albeit both cricket and rugby attract sponsors from the financial services sector
• 5.5 Estate agents
• Introduction
• Analysis of partnerships
• Legal & General continues to hold the largest number of exclusive estate agency partnerships.....
• ..... although Friends Provident is the sole provider of to the UK' s largest estate agency chain
• A number of estate agents utilise intermediaries affiliated to Zurich' s Openwork network
• Most on-line estate agency portals prefer to carry adverts rather than acting as affinity partners
• 5.6 Football clubs
• Introduction
• Analysis of partnerships
• A handful of football clubs have established financial advisory services on an affinity basis.
• 5.7 Internet, media and telecoms entities
• Introduction
• Analysis of partnerships
• Insurancewide.com and Moneysupermarket.com account for a majority of media affinities.....
• ..... although Torquil Clark, in particular, also operates several searching facilities in this field
• Affinity marketing relationships for personal and stakeholder pensions are somewhat different
• 5.8 On-line price comparison providers
• Introduction
• Analysis of partnerships
• Only two providers have established searching facilities for life insurance under their own brand
• 5.9 Retailers
• Introduction
• Analysis of partnerships
• A number of the UK' s major retailing brands are being leveraged to promote life insurance.....
• ..... with ASDA having opted for a brokerage model by means of its relationship with LifeSearch
• Tesco may follow suit although its Tesco Compare concept currently focuses on motor insurance
• Greenbee will allow the John Lewis Partnership to expand its share of total client expenditure
• Fit with the values of the John Lewis Partnership has been key to selection of affinity partners
• 5.10 Other commercial entities
• Introduction
• Branded conglomerates
• Saga and Virgin leverage their brands across the full consumer financial services spectrum.....
• ..... with Saga having rolled out a price comparison site for motor insurance in August 2007
• Loyalty schemes
• The loyalty schemes category extends to a range of diverse travel and other reward programs.....
• ..... although only ipoints offers the chance to earn points through purchase of life insurance
• The Post Office
• The Post Office is seeking to grow its total portfolio of insurance policies to two million by 2010

• Introduction
• Events in affinity and partnership marketing in Europe, 2006 and 2007
• Winter 2006
• AEGON expands bancassurance reach in Spain through link with local savings bank
• Fondiaria SAI firms up link with Banca Popolare di Milano for bancassurance venture
• Elvia reinforces position in travel insurance sector through new distribution deals
• Estonian bank diversifies into non-life bancassurance by establishing captive company
• AIB and Aviva finalise Irish bancassurance deal by combining life insurance firms
• AXA and Adeslas co-operate for health insurance distribution in Spain
• Cattolica and Banca Lombarda extend life insurance distribution tie to 2010
• French banking and insurance partners pilot Serena personal assistance platform
• Spring 2006
• Spanish arm of CIGNA launches health insurance through Travel Club loyalty program
• Fortis and An Post confirm Irish financial services joint venture
• MACIF and MNRA create affinity programs for small businesses in France
• Mapfre and Caja de Madrid extend scope of co-operation to automotive finance
• Proteq ties with leading Dutch pharmacy chain for affinity insurance venture
• ESFG and Credit Agricole strengthen Portuguese bancassurance ties
• Aon and Delta Lloyd join forces for affinity insurance venture in the Netherlands
• Summer 2006
• Fondiaria and Capitalia link for non-life bancassurance joint venture in Italy
• Mondial Assistance renews international assistance contract with Chrysler Jeep
• Cattolica strengthens strategic bancassurance tie with BPVN in Italy
• CNP launches new permanent disability and long-term care contract with ASAC-FAPES
• BBVA and Sanitas combine in Spanish health insurance distribution deal
• AXA seals affinity insurance tie with Bertelsmann media club in Germany
• CNP extends major bancassurance deals in France through to end 2015
• Winterthur and Sanitas agree tie for health insurance distribution in Switzerland
• Europäische expands card-related travel insurance deals in Germany
• Autumn 2006
• Aon Italia rolls out new propositions for professional affinity partner
• AXA buys major Greek bancassurance protagonist for € 255 million
• French mutuals tie for retirement savings cross-selling initiative
• BBVA and Willis link for high net worth property insurance venture in Spain
• Uniqa commences bancassurance joint venture in Ukraine with Credo-Classic
• German catalogue retailer commences insurance marketing venture
• AXA replaces Talanx as SEB' s new bancassurance partner in Germany
• CNP' s life assistance arm forges tie with Cheque Domicile in France
• Santander Consumer Bank improves motor insurance offer for German car buyers
• Winter 2007
• Zurich seals new manufacturer motor insurance deal with Suzuki in Germany
• AEGON forges new bancassurance link with Banca Transilvania in Romania
• ..... a distribution strategy also pursued by Aviva in the same country with Finansbank
• CIGNA targets marine sports club members with health insurance proposition in Spain
• Innovative distribution deals assist Spanish insurer Mapfre at home and abroad
• French affinity broker launches new insurance policy through AOL link
• AEGON and ERGO tie for pensions cross-selling agreement in Poland
• Mapfre takes 50% stake in Spanish savings bank insurance unit
• Cattolica finalises bancassurance agreement with Banca Popolare di Vicenza
• Mondial Assistance establishes distribution agreement with Sanyres in Spain
• VIVAS Health secures distribution link with Hibernian Direct in Ireland
• Tie with statutory health insurer in Germany pays dividends for HUK Coburg
• Caisses d' Epargne and MACIF roll out individual health insurance contracts in France
• Generali acquires bancassurance companies in Austria from BAWAG PSK
• Spring 2007
• ADAC and Zurich disclose launch joint venture insurance company in Germany
• Mapfre seals major bancassurance deals with Bankinter and BBVA in Spain
• Folksam and Swedbank initiate new bancassurance collaboration in Sweden
• AXA acquires stakes in Monte dei Paschi di Siena bancassurance firms
• Allianz links with Ferrari for car insurance policies in Germany
• Groupe Caisse d' Epargne and HSBC assume control of French bancassurance firms
• AIB kicks off on-line motor insurance venture with Hibernian in Ireland
• Fondiaria SAI forges Italian bancassurance joint venture with Banca Italease
• Summer 2007
• Generali and leading fuel retailer link for affinity tie in German insurance
• Aviva rolls out a trio of new bancassurance deals in Italy, Poland and Spain
• AEGON and Mapfre finalise bancassurance agreements with Spanish savings banks
• Vienna Insurance Group links with OMV in ten countries in Central Europe
• La Caixa buys 50% stake held by Fortis in long-standing Spanish joint venture
• Deutsche Postbank and Talanx extend German bancassurance link for 15 years
• ACE European Group sets up life company for continental affinity insurance initiatives
• National Suisse and Coop Bank agree insurance co-marketing initiative
• Sogecap commences bancassurance operations in Bulgaria and Greece
• Groupama initiates link with integrated Internet and telecoms provider in France
• Intesa Sanpaolo rolls out new approach to bancassurance in domestic market
• Citroen entrusts own-brand road assistance service to Mondial Assistance
• ING takes control of Greek bancassurance joint venture as a part of ten year deal
• Royal & SunAlliance targets Eastern Europe and Russia through GDII joint venture
• Credit Agricole buys 60% stake in non-life bancassurance entity from AGF
• Generali and PPF Group commence joint venture deal in Central and Eastern Europe
• Banco Popolare and Fondiaria SAI finalise new bancassurance joint venture in Italy
• Autumn 2007
• Zurich links with TomTom for Europe-wide motor insurance distribution venture
• Mondial Assistance secures international travel insurance ties with Eurostar and KLM
• Genertel signs affinity insurance agreement with low-cost airline in Italy
• Groupama forges joint venture with software house for co-marketing in France and abroad
• If P&C plans tie with Finnish retailer' s loyalty program from June 2008 onwards
• Allianz Suisse initiates manufacturer-branded insurance co-operation with Volkswagen
• Deutsche Postbank secures non-life bancassurance agreement with HUK-Coburg

• The affinity and partnership marketing universe
• Entities contacted for the research, segmented by broad category
• Affinity and partnership marketing schemes for life insurance in the UK: penetration by type of partner
• Affinity and partnership marketing schemes for life ins. in the UK: segmentation by op. model and competitor
• Affinity and partnership marketing schemes for pers. / stake. pensions in the UK: penetration by type of partner
• Affinity and partnership mktg. schemes for pers. / stake. pens. in the UK: segment. by op. model and comp
• Charities offering life insurance: penetration, operating models and partner market shares
• Charities offering personal / stakeholder pensions through partnerships
• Ranking of professional associations in the UK by actual or approximate number of members
• Ranking of professional associations in the UK by actual or approximate number of members (continued)
• Professional associations offering life insurance: penetration, operating models and partner market shares
• Professional associations offering pers. / stake. pens.: penetration, operating models and partner market shares
• Sports organisations offering life insurance through partnerships
• Ranking of the top 50 trade associations in the UK by actual or approximate number of members
• Trade associations offering life insurance: penetration, operating models and partner market shares
• Trade associations offering pers. / stake. pensions: penetration, operating models and partner market shares
• Ranking of trade unions in the UK by actual or approximate number of members
• Trade unions offering life insurance: penetration, operating models and partner market shares
• Trade unions offering pers. / stake. pensions: penetration, operating models and partner market shares
• Banks offering life insurance: penetration, operating models and partner market shares
• Banks offering personal / stakeholder pensions: penetration, operating models and partner market shares
• Building societies offering life insurance: penetration, operating models and partner market shares
• Building societies offering pers. / stake. pensions: penetration, operating models and partner market shares
• Credit unions offering life insurance: penetration, operating models and partner market shares
• Friendly societies offering life insurance and personal / stakeholder pensions through partnerships
• Insurance companies offering life insurance and personal / stakeholder pensions through partnerships
• On-line aggregators and brokers offering life ins.: penetration, operating models and partner market shares
• Specialised lenders offering life insurance through partnerships
• Airlines offering life insurance through partnerships
• Automotive associations offering life insurance and personal / stakeholder pensions through partnerships
• Automotive dealers, repair shops and supermarkets offering life insurance through partnerships
• Estate agents offering life insurance: penetration, operating models and partner market shares
• Football clubs offering life insurance and personal / stakeholder pensions through partnerships
• Internet, media and telecoms entities offering life ins.: penetration, operating models and partner market shares
• Internet, media and telecoms entities offering pers. / stake. pens.: pen., op. models and partner market shares
• On-line price comparison providers offering life insurance through partnerships
• Retailers offering life insurance through partnerships
• Branded conglomerates offering life insurance and personal / stakeholder pensions through partnerships
• Loyalty schemes offering life insurance through partnerships