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 seven studies in a new series of publications. Drawing on the results of a survey of 2,500 organisations, the report analyses the penetration, operating models and partner market shares of affinity and partnership marketing schemes for accident and health insurance across a range of distributor categories. These include banks, building societies, charities, friendly societies, Internet, media and telecoms entities, on-line aggregators and brokers, 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 the more than 300 affinity and partnership marketing initiatives traced by Finaccord in this sector. In the context of this report, accident insurance embraces all types of policy usually encompassed by the definition, including personal accident insurance, accidental death insurance, accident cash plans and serious injury plans, but with the exception of creditor or payment protection insurance. In a similar vein, health insurance refers to dental expenses policies, health cash plans and private medical insurance but, again, omits creditor or payment protection insurance. 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; - benchmark the competitive position of your own organisation in affinity and partnership marketing of accident and health insurance and spot opportunities for displacing rivals; - gain a wider perspective from learning about recent innovations in partnership marketing of insurance in continental Europe and Ireland; - 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 SUMMARY2
Research background and structure 2
Accident and health insurance embraces a variety of different types of protection policy 2
A majority of affinity marketing schemes for accident insurance are organised through brokers2
although AIG and HMCA are identifiable as the leading specialist providers in this field3
Over a quarter of organisations surveyed in 18 sub-categories offer health insurance3
with BUPA emerging as the provider with the highest outright number of exclusive partnerships 4
Key success factors for affinity marketing in accident and health insurance vary by type of policy 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 proliferate8
with on-line affinity and partnership marketing having growing rapidly in importance of late 8
Methodology10
Errors, omissions and limit of liability 11

2.0 MARKET OVERVIEW13
Affinities and partnerships in UK accident and health insurance13
Over 10% of organisations surveyed in nine sub-categories promote accident insurance13
with most schemes organised through brokers rather than placed directly with underwriters15
Affinity programs for health insurance are more widespread than those for accident insurance17
with BUPA having established the highest outright number of deals with partner organisations 19

3.0 NOT-FOR-PROFIT AFFINITY GROUPS21
31 Charities21
Introduction21
Analysis of partnerships 21
Three charities are engaged in marketing accident and health insurance policies to supporters21
intune’s main target market is the affluent over-50 age group served by Saga23
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 23
as it seeks to reach an operating profit of £15 million per annum by 2012 23
33 Professional associations 24
Introduction24
Over 50 professional associations possess in excess of 5,000 individual members 24
Analysis of partnerships 27
The vast majority of professional associations offering motor insurance do so through a broker27
with Parliament Hill having expanded its roster of member benefits clients to 11 associations27
A further three brokers each claim to more than one deal in the professional association segment27
Almost a half of associations have organised health insurance schemes for their members29
BUPA and HMCA rank among the foremost providers to the professional association sector29
although other protagonists including Benenden Healthcare and WPA are also active 29
34 Sports organisations 31
Introduction31
Analysis of partnerships 31
Perkins Slade has carved out a strong position for itself in the sports organisation sector31
having been appointed as the approved insurance broker to the CCPR31
although at least a dozen other firms are also active as affinity providers in this market 31
HMCA has begun to establish schemes for health insurance with sports organisations 33
35 Trade associations34
Introduction34
Analysis of partnerships 36
Over 5% of trade associations have organised the provision of stand-alone accident insurance36
although the provision rate for health insurance is nearly three times higher 37
BUPA and Private Health Partnership are most commonly used by trade associations 37
Private Health Partnership has built up a portfolio of around 8,000 mainly corporate clients 37
36 Trade unions 39
Introduction39
Analysis of partnerships 41
AIG has established several distribution deals for accident insurance with trade unions 41
A number of trade unions have organised propositions in the area of health insurance43
with both BUPA and Simplyhealth’s HSA each claiming more than one affinity partnership43
37 Other not-for-profit affinity groups45
Introduction45
Lifestyle organisations 45
The Countryside Alliance collaborates with RK Harrison for specialist accident insurance45

4.0 FINANCIAL PARTNERS 47
41 Banks47
Introduction47
Analysis of partnerships 48
Only a handful of retail banks in the UK offer accident insurance on a stand-alone basis48
although a significant amount of behind-the-scenes tele-marketing is also taking place49
which also extends to lower cost health policies in addition to private medical insurance 49
42 Building societies51
Introduction51
Analysis of partnerships 52
Building societies display limited visible interest in non-creditor accident and health insurance52
43 Credit cards and premium accounts53
Introduction53
Analysis of partnerships 53
Accident and health insurance coverages are rarely packaged with banking products53
although Alliance & Leicester’s Premier 50 Health Benefits concept is an innovative service53
44 Credit unions55
Introduction55
Analysis of partnerships 56
Norwich Union accesses the credit union market as the approved supplier of CUNA Mutual56
although the Scottish Police Credit Union has also established an affinity link with BUPA56
45 Friendly societies 58
Introduction58
Analysis of partnerships 59
Friendly society involvement in accident and health insurance remains almost entirely internal59
46 Insurance companies 60
Introduction60
Analysis of partnerships 61
PruHealth is aiming for an overall market share of 10% in private medical insurance by 201161
47 On-line aggregators and brokers 62
Introduction62
Analysis of partnerships 63
Chase Templeton’s Preferred Medical is the partner of both Confusedcom and The Motley Fool 63
48 Specialised lenders64
Introduction64
Analysis of partnerships 65
American Express has linked with Aetna’s Goodhealth Worldwide for an expatriate health policy65

5.0 COMMERCIAL ENTITIES67
51 Automotive associations 67
Introduction67
Analysis of partnerships 68
Through First Assist, RAC is marketing a travel-related accident insurance policy68
52 Cricket and rugby clubs69
Introduction69
Analysis of partnerships 69
Cricket and rugby clubs have no involvement in either accident or health insurance69
albeit both cricket and rugby attract sponsors from the financial services sector 69
53 Football clubs 70
Introduction70
Analysis of partnerships 70
Football clubs display little appetite for affinity marketing of either accident or health insurance70
54 Internet, media and telecoms entities72
Introduction72
Analysis of partnerships 73
ACE European Group maintains a link with Candis for personal accident insurance73
Moneysupermarketcom and Insurancewidecom account for a majority of media affinities74
55 On-line price comparison providers 75
Introduction75
Analysis of partnerships 76
Only PriceRunner has established a searching facility for health insurance under its own brand76
56 Retailers77
Introduction77
Analysis of partnerships 78
Retailers appear to remain wary about acting as partners for accident or health insurance78
although PruHealth’s alliance with Boots could be a key turning point in the affinity market 78
The Boots web site is the most frequently visited health and wellness site in the UK78
and the initial results from the partnership have been encouraging in a variety of ways78
Greenbee will allow the John Lewis Partnership to expand its share of total client expenditure 79
Fit with the values of the John Lewis Partnership has been key to selection of affinity partners80
57 Other commercial entities81
Introduction81
Branded conglomerates81
Saga and Virgin leverage their brands across the full consumer financial services spectrum81
Loyalty schemes82
The loyalty schemes category extends to a range of diverse travel and other reward programs82
with several offering members the chance points through purchase of health insurance82
AIRMILES reconfigures its affinity strategy by forging a new link with Lloyds TSB83
Delivering memorable experiences continues to be key to the AIRMILES proposition83
Lloyds TSB hopes to leverage the relationship across a range of financial services 83
AIRMILES has bolstered its range of family-oriented redemption options84
and is also in the process of rolling out a policy asserting its ‘green’ credentials84
The Post Office84
The Post Office is seeking to grow its total portfolio of insurance policies to two million by 201084

6.0 EUROPEAN INNOVATIONS87
Introduction87
Events in affinity and partnership marketing in Europe, 2006 and 200787
Winter 200687
AEGON expands bancassurance reach in Spain through link with local savings bank87
Fondiaria SAI firms up link with Banca Popolare di Milano for bancassurance venture 87
Elvia reinforces position in travel insurance sector through new distribution deals 88
Estonian bank diversifies into non-life bancassurance by establishing captive company88
AIB and Aviva finalise Irish bancassurance deal by combining life insurance firms88
AXA and Adeslas co-operate for health insurance distribution in Spain 89
Cattolica and Banca Lombarda extend life insurance distribution tie to 201089
French banking and insurance partners pilot Séréna personal assistance platform89
Spring 200689
Spanish arm of CIGNA launches health insurance through Travel Club loyalty program89
Fortis health insurance  and An Post confirm Irish financial services joint venture 90
MACIF and MNRA create affinity programs for small businesses in France90
Mapfre and Caja de Madrid extend scope of co-operation to automotive finance 90
Proteq ties with leading Dutch pharmacy chain for affinity insurance venture 90
ESFG and Crédit Agricole strengthen Portuguese bancassurance ties 90
Aon and Delta Lloyd join forces for affinity insurance venture in the Netherlands91
Summer 2006 91
Fondiaria and Capitalia link for non-life bancassurance joint venture in Italy91
Mondial Assistance renews international assistance contract with Chrysler Jeep 91
Cattolica strengthens strategic bancassurance tie with BPVN in Italy91
CNP launches new permanent disability and long-term care contract with ASAC-FAPES91
BBVA and Sanitas combine in Spanish health insurance distribution deal92
AXA seals affinity insurance tie with Bertelsmann media club in Germany 92
CNP extends major bancassurance deals in France through to end 201592
Winterthur and Sanitas agree tie for health insurance distribution in Switzerland 92
Europäische expands card-related travel insurance deals in Germany92
Autumn 200692
Aon Italia rolls out new propositions for professional affinity partner 92
AXA buys major Greek bancassurance protagonist for €255 million 93
French mutuals tie for retirement savings cross-selling initiative 93
BBVA and Willis link for high net worth property insurance venture in Spain 93
Uniqa commences bancassurance joint venture in Ukraine with Credo-Classic93
German catalogue retailer commences insurance marketing venture94
AXA replaces Talanx as SEB’s new bancassurance partner in Germany94
CNP’s life assistance arm forges tie with Chèque Domicile in France94
Santander Consumer Bank improves motor insurance offer for German car buyers 94
Winter 200795
Zurich seals new manufacturer motor insurance deal with Suzuki in Germany 95
AEGON forges new bancassurance link with Banca Transilvania in Romania95
a distribution strategy also pursued by Aviva in the same country with Finansbank 95
CIGNA targets marine sports club members with health insurance proposition in Spain95
Innovative distribution deals assist Spanish insurer Mapfre at home and abroad95
French affinity broker launches new insurance policy through AOL link 96
AEGON and ERGO tie for pensions cross-selling agreement in Poland96
Mapfre takes 50% stake in Spanish savings bank insurance unit96
Cattolica finalises bancassurance agreement with Banca Popolare di Vicenza96
Mondial Assistance establishes distribution agreement with Sanyres in Spain97
VIVAS Health secures distribution link with Hibernian Direct in Ireland 97
Tie with statutory health insurer in Germany pays dividends for HUK Coburg97
Caisses d’Épargne and MACIF roll out individual health insurance contracts in France 98
Generali acquires bancassurance companies in Austria from BAWAG PSK98
Spring 200798
ADAC and Zurich disclose launch joint venture insurance company in Germany98
Mapfre seals major bancassurance deals with Bankinter and BBVA in Spain98
Folksam and Swedbank initiate new bancassurance collaboration in Sweden99
AXA acquires stakes in Monte dei Paschi di Siena bancassurance firms 99
Allianz links with Ferrari for car insurance policies in Germany 99
Groupe Caisse d’Épargne and HSBC assume control of French bancassurance firms99
AIB kicks off on-line motor insurance venture with Hibernian in Ireland99
Fondiaria SAI forges Italian bancassurance joint venture with Banca Italease99
Summer 2007 100
Generali and leading fuel retailer link for affinity tie in German insurance 100
Aviva rolls out a trio of new bancassurance deals in Italy, Poland and Spain 100
AEGON and Mapfre finalise bancassurance agreements with Spanish savings banks 101
Vienna Insurance Group links with OMV in ten countries in Central Europe 101
La Caixa buys 50% stake held by Fortis health insurance in long-standing Spanish joint venture 101
Deutsche Postbank and Talanx extend German bancassurance link for 15 years 101
ACE European Group sets up life company for continental affinity insurance initiatives 102
National Suisse and Coop Bank agree insurance co-marketing initiative 102
Sogecap commences bancassurance operations in Bulgaria and Greece 102
Groupama initiates link with integrated Internet and telecoms provider in France 102
Intesa Sanpaolo rolls out new approach to bancassurance in domestic market 102
Citroën entrusts own-brand road assistance service to Mondial Assistance 103
ING takes control of Greek bancassurance joint venture as a part of ten year deal 103
Royal & SunAlliance targets Eastern Europe and Russia through GDII joint venture 103
Crédit Agricole buys 60% stake in non-life bancassurance entity from AGF 104
Generali and PPF Group commence joint venture deal in Central and Eastern Europe 104
Banco Popolare and Fondiaria SAI finalise new bancassurance joint venture in Italy 104
Autumn 2007 104
Zurich links with TomTom for Europe-wide motor insurance distribution venture 104
Mondial Assistance secures international travel insurance ties with Eurostar and KLM 104
Genertel signs affinity insurance agreement with low-cost airline in Italy 105
Groupama forges joint venture with software house for co-marketing in France and abroad 105
If P&C plans tie with Finnish retailer’s loyalty program from June 2008 onwards 105
Allianz Suisse initiates manufacturer-branded insurance co-operation with Volkswagen 105
Deutsche Postbank secures non-life bancassurance agreement with HUK-Coburg 106

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 accident insurance in the UK: penetration by type of partner 14
Affinity and partnership marketing schemes for accident ins in the UK: segmentation by op model and comp 16
Affinity and partnership marketing schemes for health insurance in the UK: penetration by type of partner 18
Affinity and partnership marketing schemes for health ins in the UK: segment by op model and competitor 20
Charities offering accident and health insurance through partnerships 22
Ranking of professional associations in the UK by actual or approximate number of members 25
Ranking of professional associations in the UK by actual or approximate number of members (continued) 26
Professional associations offering accident insurance: penetration, operating models and partner market shares 28
Professional associations offering health insurance: penetration, operating models and partner market shares 30
Sports organisations offering accident insurance: penetration, operating models and partner market shares 32
Sports organisations offering health insurance: penetration, operating models and partner market shares 33
Ranking of the top 50 trade associations in the UK by actual or approximate number of members 35
Trade associations offering accident insurance: penetration, operating models and partner market shares 36
Trade associations offering health insurance: 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 accident insurance: penetration, operating models and partner market shares 42
Trade unions offering health insurance: penetration, operating models and partner market shares 44
Lifestyle organisations offering accident insurance through partnerships 45
Banks offering accident insurance: penetration, operating models and partner market shares 48
Banks offering health insurance: penetration, operating models and partner market shares 50
Building societies offering accident and health insurance through partnerships 52
Credit cards and premium accounts offering accident and health insurance through partnerships 54
Credit unions offering health insurance: penetration, operating models and partner market shares 57
Friendly societies offering accident insurance through partnerships 59
Insurance companies offering health insurance through partnerships 61
On-line aggregators and brokers offering health ins: penetration, operating models and partner market shares 63
Specialised lenders offering accident and health insurance through partnerships 65
Automotive associations offering accident insurance through partnerships 68
Football clubs offering accident and health insurance through partnerships 71
Internet, media and telecoms entities offering accident insurance through partnerships 73
Internet, media and telecoms entities offering accident ins: penetration, op models and partner market shares 74
On-line price comparison providers offering health insurance through partnerships 76
Retailers offering accident and health insurance through partnerships 79
Branded conglomerates offering accident and health insurance through partnerships 82
Loyalty schemes offering health insurance through partnerships 83

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