-
Electronic (PDF)
-
Site License
-
Enterprisewide
Affinity and Partnership Marketing in UK Life Insurance, Retirement Products and Financial Advice
Finaccord, January 2013, Pages: 178
Finaccord's report titled Affinity and Partnership Marketing in UK Life Insurance, Retirement Products and Financial Advice represents the most detailed research ever undertaken on this sector and is one of seven studies in the latest series of publications. Drawing on the results of a survey of 2,650 organisations, the report analyses the penetration, operating models and provider share of relationships of affinity and partnership marketing schemes for protection-related life insurance, pensions, at-retirement products and financial advice across a range of distributor categories.
These include: banks; building societies; charities; estate agency and property services firms; friendly societies; internet, media and telecoms entities; lifestyle organisations; 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 more than 550 affinity and partnership marketing initiatives traced by Finaccord in this sector.
In addition, the latest analysis identifies not only the providers of protection-related life insurance, pensions, at-retirement products and financial advice with the most partnerships (overall, and within each category) but, for the first time and using a proprietary formula devised by Finaccord, 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.
In this report, note that life insurance is defined as protection-related life insurance not explicitly related to loans including level and decreasing term life, critical illness, income protection (both long-term and short-term), over-50s plans, funeral expenses insurance and life savings insurance (offered for free to their savers by all credit unions). Hence, creditor (payment protection) and all forms of investment-related life insurance are excluded. Furthermore, personal and stakeholder pensions are defined as including SIPPs (self-invested personal pensions) and group personal or stakeholder pensions, but not occupational pensions and at-retirement products are defined as equity release products and annuities (including income drawdown). Finally, financial advice is defined as the provision of advice in broad terms, potentially including the products listed above but also including more general advice about subjects such as savings, investments, tax and estate planning.
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 life insurance, retirement products and financial advice;
- gain access to research that chronicles the vast majority of affinity and partnership marketing opportunities in these four areas;
- understand not only which providers have secured the most partnerships but which are likely to hold the most valuable deals for each of protection-related life insurance, pensions, at-retirement products and financial advice;
- 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 in life insurance, retirement products and financial advice 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 life insurance, retirement products and financial advice.
0.0 EXECUTIVE SUMMARY
1.0 INTRODUCTION
Background
Rationale
Affinity and partnership marketing remains an important, strategic topic for financial institutions...
... as the ability of affinity and corporate partners to compete effectively has evolved over time
Implementation of the RDR could have a specific impact on the services covered by this report
Methodology
Organisations investigated
Finaccord's research covers a total of 2,650 actual and potential partner organisations...
... representing virtually all entities that could be significant in this field
Calculation of weighted provider share of partnerships
Finaccord's methodology identifies providers that are likely to hold the most valuable relationships...
... by means of formulae that take into account not only UK traffic rankings for organisations' websites...
... but also distribution shares for each financial product or service by organisation category...
... and the total number of organisations in each category that actually distribute the product
Definitions
Financial products
Operating models
PartnerBASE syntax
Finaccord
UK affinity and partnership marketing publications
UK consumer research publications
2.0 MARKET OVERVIEW
Affinities and partnerships in UK life insurance, retirement products and financial advice
Life insurance
Finaccord’s research identified 281 schemes for life insurance involving an external partner...
... which are divided between 20 distributor categories
Most affinity schemes are organised in conjunction with a single external partner
Only two organisations are ranked in the top eight for both the weighted and unweighted analysis
In the unweighted analysis, the leading provider secures its position through over 40 partnerships
In weighted terms, Direct Life & Pension Services is the leading intermediary...
... with Aviva Life & Pensions emerging as the most prominent underwriter
Personal / stakeholder pensions
Comparatively few partner organisations have a specific arrangement for selling pensions...
... with those that do most likely to work with a single external pension company
Aviva Life & Pensions is the product market leader whether measured on an unweighted or weighted basis
At-retirement products
Partner organisations in 11 out of 30 categories have a clearly articulated at-retirement product proposition
Where available, at-retirement products are most commonly organised via an external intermediary
By outright number of partnerships, Key Retirement Solutions and Just Retirement are the leaders
Both of these companies have enjoyed strong business growth in recent years
The Annuity Bureau lays claim to the partnership that contributes the most in weighted terms
Financial advice
More than 20% of organisations in six categories have an accredited provider of financial advice...
... producing a total of 135 initiatives involving an external IFA or other provider
Financial advice is usually organised in association with a single external IFA
In unweighted terms, the leading provider has nearly three times as many partnerships as its closest rival
Lighthouse and Towergate Financial each hold a diverse portfolio of relationships
Only three providers of financial advice appear in the top eight on both an unweighted and weighted basis
Two of Lighthouse's major affinity deals were secured as recently as 2011
Key new deals and renewals, Q2 2010 to Q3 2012
3.0 NOT-FOR-PROFIT AFFINITY PARTNERS
Charities
Introduction
The websites of the National Trust and Great Ormond Street Hospital attract the most UK traffic
Analysis of partnerships
Protection-related life insurance is promoted by a reasonably significant number of charities
Gallagher Heath organises life insurance on behalf of a number of medical charities
As a consequence of just one partnership, Advance Planning is the sector leader in weighted terms
Just four charities have a specific proposition in the area of at-retirement products...
... and only one was classified as offering independent financial advice
Lifestyle organisations
Introduction
The category of lifestyle organisations embraces a diverse range of entities
Analysis of partnerships
Both schemes traced in this category are run through a single, external IFA
Four lifestyle organisations have an arrangement in place for promoting at-retirement products...
... with the same number offering a financial advice service to their members
Professional associations
Introduction
The combined membership of professional associations comes to just under 4 million
Analysis of partnerships
Well over a quarter of professional associations have organised a scheme for life insurance
Parliament Hill runs member benefit schemes on behalf of over 30 professional associations...
... making it the dominant provider in this sector by both unweighted and weighted share...
HMCA also holds a significant number of partnerships in this arena...
... and works with separate underwriters for different types of protection-related life insurance
Ten other providers of life insurance have secured deals with professional associations
For pensions, the long-standing link of LV= with the Royal College of Nursing is likely to be most significant
Professional associations quite commonly appoint a preferred provider of financial advice
Working with Burlington Associates, Parliament Hill is once again prominent in this area...
... although there are numerous other financial advisers competing for mandates here
Sports organisations
Introduction
This category includes bodies to which individual sports clubs, practitioners and trainers may belong
Analysis of partnerships
Six sports organisations have established affinity programs for life insurance...
... but none for either pensions or at-retirement products and just two for financial advice
Trade associations
Introduction
Finaccord has extended its coverage in this category to a total of 700 associations
Analysis of partnerships
28 trade associations offer life insurance to the employees of their member companies
In this domain, HMCA is the only provider with more than one distribution partnership...
... with the remainder spread thinly across 13 separate entities
The provision rate for personal / stakeholder pensions slips to 22 out of 700 trade associations
In this field, four organisations hold two or more relationships with trade associations
Scottish Widows is ranked third on an unweighted basis but first in weighted terms
Several trade associations have appointed an accredited provider of financial advice...
... with the Federation of Small Businesses likely to be the most important of these by far
Trade unions
Introduction
There are around 6.4 million trade union members in the UK
Analysis of partnerships
A significant number of trade unions include life insurance among offers made to members
Two providers work with two or more trade unions and over 20 others with one each
UIB's four relationships make it the most prominent provider on both an unweighted and weighted basis
Only seven trade unions have an arrangement in place for personal or stakeholder pensions...
... albeit this figure rises to over 20 when it comes to the provision of general financial advice
Lighthouse and Endsleigh are prominent providers in both unweighted and weighted terms...
... in part by virtue of the fact that they are two of only three entities with more than one relationship
Universities
Introduction
The Open University's website attracts more UK traffic than that of any other UK-based university
Analysis of partnerships
Universities have scant involvement in these fields although two offer financial advice
4.0 FINANCIAL PARTNERS
Banks
Introduction
Several challenger banks have emerged to compete with the major incumbents...
... and further structural changes to the market are likely to occur in future years
Analysis of partnerships
Banks utilise a variety of operating models for the provision of life insurance
11 providers hold mandates for protection-related life insurance products with banks...
... among which Aviva Life & Pensions is most prominent irrespective of the measure used
The unweighted and weighted analyses of partnerships produce very different results
Only three banks have a specific proposition in the area of personal or stakeholder pensions...
... and just one for at-retirement products
Banks that continue to offer financial advice do so either as a tied agent or on a captive or internal basis...
... although the impact of the RDR may mean that they re-evaluate their approach in this arena
Building societies
Introduction
Mergers and acquisitions have caused the number of extant building society brands to shrink to 54
Analysis of partnerships
Almost two thirds of building societies remain active as distributors of life insurance
13 providers claim at least one building society partnership for protection-related life insurance...
... which is partly a function of the different types of policy that building societies choose to market
Three providers working with the Nationwide are dominant in the weighted analysis of partnerships
The provision rate for personal or stakeholder pensions has retreated to just five out of 54 organisations...
... rising to eight out of 54 in the case of at-retirement products
A majority of building societies offer financial advice with three main operating models in evidence
External providers include Aviva, Legal & General, Skipton Financial Services and Towergate Financial
Credit unions
Introduction
Total membership across around 400 credit unions in the UK now exceeds 1 million...
... with this figure having risen by 170% since 2007
The websites of two London-based credit unions pull in the most online visitors from the UK
Analysis of partnerships
All credit unions investigated offer protection-related life insurance in one form or another...
... with CUNA Mutual and The Co-operative Funeralcare identifiable as the sole providers
Friendly societies
Introduction
Finaccord's research covers 25 of the larger friendly societies in the UK...
... among which Liverpool Victoria is by far the largest
Analysis of partnerships
Selling protection-related life insurance is a core activity for the vast majority of friendly societies...
... although only two are involved in the field of personal or stakeholder pensions...
... and one in the market for at-retirement products
Two friendly societies offer financial advice, both by means of a captive IFA
Insurers
Introduction
Over 70 insurance underwriting brands can be broken down into four main sub-categories
Analysis of partnerships
15 out of 33 insurance brands work with an external provider of life policies
14 external providers, including both underwriters and intermediaries, are visible in this domain
AXA Wealth holds the most deals but those of Direct Life & Pension Services carry the most weight
All insurance brands selling personal or stakeholder pensions do so on a captive or internal basis...
... with a similar observation applying in the case of at-retirement products
Five insurance brands offer financial advice, three via an external IFA and two through a captive IFA
Online aggregators and brokers
Introduction
The market for online aggregation and broking has become more concentrated in recent years...
... as a result of a number of factors including the challenge thrown up by cashback websites
Analysis of partnerships
Some entities in this category have their own search engine but many outsource to external providers
Direct Life & Pension Services and theidol.com are the leading duo by both measures used...
... with their combined share of partnerships increasing when analysed on a weighted basis
Nine major online intermediaries have devised a system for promoting pension products...
... with ten having done so for at-retirement products...
... although just four are active in the provision of general financial advice
Specialised lenders
Introduction
The category of specialised lenders includes a variety of different types of institution...
... with many new competitors having emerged in the wake of the 'credit crunch'
Analysis of partnerships
A single initiative for life insurance is visible in this partner category
5.0 COMMERCIAL PARTNERS
Automotive associations
Introduction
In addition to the AA and RAC, six other organisations fall within this partner category
Analysis of partnerships
Three automotive associations distribute life insurance, all by means of a deal with an external underwriter
The CSMA Club maintains a partnership with Lighthouse Financial Advice
Coalition loyalty schemes and frequent flyer programs
Introduction
The websites of four loyalty schemes are ranked in the top 5,000 by number of UK visitors
Analysis of partnerships
Three loyalty schemes allow members to earn 'currency' by purchasing life insurance
Estate agency and property service firms
Introduction
This category includes prominent online estate agency and property portals as well as traditional chains
Analysis of partnerships
Almost two thirds of organisations in this category have an arrangement for promoting life insurance...
Legal & General and Mortgage Advice Bureau are the category leaders on an unweighted basis...
... in a fragmented field in which there are over 20 competing providers in total
The high traffic attracted to the website of Foxtons is of benefit to Alexander Hall in the weighted analysis
Via external or internal IFAs, five companies in this field also intermediate pension products...
... although only two are classified as having involvement in the sale of at-retirement products
12 firms have an arrangement in place for offering general financial advice...
... with Private Finance the only provider holding a relationship with more than one of them
Internet, media and telecoms entities
Introduction
This category embraces many organisations with extremely high UK website rankings...
... which can have a substantial impact on the analysis of weighted partnership shares
Analysis of partnerships
Most initiatives in this category are run via external aggregators
In weighted terms, lovemoney.com and Moneysupermarket.com hold partnerships with strong potential...
... with Bright Grey ranked third by this measure thanks to its link with the Telegraph Media Group
Few entities in this category have any specific proposition for personal or stakeholder pensions...
... albeit more opportunities are in evidence in the case of at-retirement products
Ten different providers have won distribution mandates with internet, media and telecoms entities...
... two with a pair of partnerships and eight with one deal each
On a weighted basis, Skipton Financial Services and Key Retirement Solutions are ranked highest
Only three initiatives are visible in the realm of general financial advice
Retailers
Introduction
Among retail brands, Amazon's website attracts the most UK traffic, followed by those of Tesco and Argos
Analysis of partnerships
Seven major retailing brands are used for selling forms of protection-related life insurance
The Post office and other major brands
Introduction
Several major organisations are considered separately as they do not fit easily in the other categories
Among these, the website of the Post Office pulls in the most UK visitors, followed by that of Saga
Analysis of partnerships
Three of the five organisations covered promote one or more of the products or services investigated
LIST OF GRAPHICS / TABLES
0.0 EXECUTIVE SUMMARY
1.0 INTRODUCTION
The affinity and partnership marketing universe
Organisations investigated, segmented by broad category
2.0 MARKET OVERVIEW
Affinity and partnership marketing schemes for life insurance in the UK: provision rate by category of partner
Affinity and partnership marketing schemes for life insurance in the UK: operating models
Affinity and partnership marketing schemes for life insurance in the UK: unweighted and weighted provider share of partnerships
Affinity and partnership marketing schemes for personal / stakeholder pensions in the UK: provision rate by category of partner
Affinity and partnership marketing schemes for personal / stakeholder pensions in the UK: operating models
Affinity and partnership marketing schemes for personal / stakeholder pensions in the UK: unweighted and weighted provider share of partnerships
Affinity and partnership marketing schemes for at-retirement products in the UK: provision rate by category of partner
Affinity and partnership marketing schemes for at-retirement products in the UK: operating models
Affinity and partnership marketing schemes for at-retirement products in the UK: unweighted and weighted provider share of partnerships
Affinity and partnership marketing schemes for financial advice in the UK: provision rate by category of partner
Affinity and partnership marketing schemes for financial advice in the UK: operating models
Affinity and partnership marketing schemes for financial advice in the UK: unweighted and weighted provider share of partnerships
3.0 NOT-FOR-PROFIT AFFINITY PARTNERS
Charities offering life insurance: provision rates and operating models
Charities offering life insurance: unweighted and weighted provider share of partnerships
Charities offering at-retirement products: provision rates and operating models
Charities offering at-retirement products: unweighted and weighted provider share of partnerships
Charities offering financial advice: provision rates and operating models
Lifestyle organisations offering life insurance and personal / stakeholder pensions: provision rates and operating models
Lifestyle organisations offering at-retirement products: provision rates and operating models
Lifestyle organisations offering at-retirement products: unweighted and weighted provider share of partnerships
Lifestyle organisations offering financial advice: provision rates and operating models
Lifestyle organisations offering financial advice: unweighted and weighted provider share of partnerships
Top 40 professional associations in the UK ranked by member numbers, 2012 (table)
Professional associations offering life insurance: provision rates and operating models
Professional associations offering life insurance: unweighted and weighted provider share of partnerships
Professional associations offering personal / stakeholder pensions: provision rates and operating models
Professional associations offering personal / stakeholder pensions: unweighted and weighted provider share of partnerships
Professional associations offering financial advice: provision rates and operating models
Professional associations offering financial advice: unweighted and weighted provider share of partnerships
Sports organisations offering life insurance: provision rates and operating models
Sports organisations offering life insurance: unweighted and weighted provider share of partnerships
Sports organisations offering financial advice: provision rates and operating models
Sports organisations offering financial advice: unweighted and weighted provider share of partnerships
Top 80 trade associations in the UK ranked by member numbers, 2012 (table)
Top 80 trade associations in the UK ranked by member numbers, 2012 (table) (continued)
Trade associations offering life insurance: provision rates and operating models
Trade associations offering life insurance: unweighted and weighted provider share of partnerships
Trade associations offering personal / stakeholder pensions: provision rates and operating models
Trade associations offering personal / stakeholder pensions: unweighted and weighted provider share of partnerships
Trade associations offering financial advice: provision rates and operating models
Trade associations offering financial advice: unweighted and weighted provider share of partnerships
Top 40 trade unions in the UK ranked by member numbers, 2012 (table)
Trade unions offering life insurance: provision rates and operating models
Trade unions offering life insurance: unweighted and weighted provider share of partnerships
Trade unions offering personal / stakeholder pensions: provision rates and operating models
Trade unions offering personal / stakeholder pensions: unweighted and weighted provider share of partnerships
Trade unions offering financial advice: provision rates and operating models
Trade unions offering financial advice: unweighted and weighted provider share of partnerships
Universities offering financial advice: provision rates and operating models
Universities offering financial advice: unweighted and weighted provider share of partnerships
4.0 FINANCIAL PARTNERS
Banks offering life insurance: provision rates and operating models
Banks offering life insurance: unweighted and weighted provider share of partnerships
Banks offering personal / stakeholder pensions: provision rates and operating models
Banks offering at-retirement products: provision rates and operating models
Banks offering financial advice: provision rates and operating models
Banks offering financial advice: unweighted and weighted provider share of partnerships
Building societies offering life insurance: provision rates and operating models
Building societies offering life insurance: unweighted and weighted provider share of partnerships
Building societies offering personal / stakeholder pensions: provision rates and operating models
Building societies offering personal / stakeholder pensions: unweighted and weighted provider share of partnerships
Building societies offering at-retirement products: provision rates and operating models
Building societies offering at-retirement products: unweighted and weighted provider share of partnerships
Building societies offering financial advice: provision rates and operating models
Building societies offering financial advice: unweighted and weighted provider share of partnerships
Credit unions offering life insurance: provision rates and operating models
Credit unions offering life insurance: unweighted and weighted provider share of partnerships
Friendly societies offering life insurance: provision rates and operating models
Friendly societies offering life insurance: unweighted and weighted provider share of partnerships
Friendly societies offering personal / stakeholder pensions: provision rates and operating models
Friendly societies offering at-retirement products: provision rates and operating models
Friendly societies offering financial advice: provision rates and operating models
Friendly societies offering financial advice: unweighted and weighted provider share of partnerships
Insurers offering life insurance: provision rates and operating models
Insurers offering life insurance: unweighted and weighted provider share of partnerships
Insurers offering personal / stakeholder pensions: provision rates and operating models
Insurers offering at-retirement products: provision rates and operating models
Insurers offering at-retirement products: unweighted and weighted provider share of partnerships
Insurers offering financial advice: provision rates and operating models
Insurers offering financial advice: unweighted and weighted provider share of partnerships
Online aggregators and brokers offering life insurance: provision rates and operating models
Online aggregators and brokers offering life insurance: unweighted and weighted provider share of partnerships
Online aggregators and brokers offering personal / stakeholder pensions insurance: provision rates and operating models
Online aggregators and brokers offering at-retirement products: provision rates and operating models
Online aggregators and brokers offering at-retirement products: unweighted and weighted provider share of partnerships
Online aggregators and brokers offering financial advice: provision rates and operating models
Online aggregators and brokers offering financial advice: unweighted and weighted provider share of partnerships
Specialised lenders offering life insurance: provision rates and operating models
5.0 COMMERCIAL PARTNERS
Automotive associations offering life insurance: provision rates and operating models
Automotive associations offering life insurance: unweighted and weighted provider share of partnerships
Automotive associations offering financial advice: provision rates and operating models
Coalition loyalty schemes and frequent flyer programs offering life insurance: provision rates and operating models
Coalition loyalty schemes and frequent flyer programs offering life insurance: unweighted and weighted provider share of partnerships
Estate agency and property service firms offering life insurance: provision rates and operating models
Estate agency and property service firms offering life insurance: unweighted and weighted provider share of partnerships
Estate agency and property service firms offering personal / stakeholder pensions: provision rates and operating models
Estate agency and property service firms offering personal / stakeholder pensions: unweighted and weighted provider share of partnerships
Estate agency and property service firms offering at-retirement products: provision rates and operating models
Estate agency and property service firms offering at-retirement products: unweighted and weighted provider share of partnerships
Estate agency and property service firms offering financial advice: provision rates and operating models
Estate agency and property service firms offering financial advice: unweighted and weighted provider share of partnerships
Internet, media and telecoms entities offering life insurance: provision rates and operating models
Internet, media and telecoms entities offering life insurance: unweighted and weighted provider share of partnerships
Internet, media and telecoms entities offering personal / stakeholder pensions: provision rates and operating models
Internet, media and telecoms entities offering personal / stakeholder pensions: unweighted and weighted provider share of partnerships
Internet, media and telecoms entities offering at-retirement products: provision rates and operating models
Internet, media and telecoms entities offering at-retirement products: unweighted and weighted provider share of partnerships
Internet, media and telecoms entities offering financial advice: provision rates and operating models
Internet, media and telecoms entities offering financial advice: unweighted and weighted provider share of partnerships
Retailers offering life insurance: provision rates and operating models
Retailers offering life insurance: unweighted and weighted provider share of partnerships
Partnerships of the Post Office and other major brands offering life insurance, personal / stakeholder pensions, at-retirement products and financial advice
Product Samples
A sample for this product is available. Please Login/Register to download this sample.
Customers who bought this item also bought
All rights reserved. © Copyright 2013 Research and Markets WWW5
Terms and Conditions Privacy Policy Publishers Employment Opportunities Site Map Link to us Webmaster Affiliate Network
