Affinity and Partnership Marketing in Life Insurance and Pensions in Germany

Published by: Finaccord Ltd.

Published: Jan. 1, 2009 - 110 Pages

Table of Contents

0.0 EXECUTIVE SUMMARY

Research background and structure

Several different types of insurance are covered within the category of life insurance and pensions . 2

Direct relationships with insurance companies represent the preferred model for life insurance...

… with Allianz and R+V possessing the highest outright number of exclusive partnerships

Numerous providers compete for distribution mandates for retirement savings products

Restructuring of the German banking sector will have a fundamental impact on future opportunities ..

Distribution developments in Europe may provide useful indicators for future directions in Germany

itself

1.0 INTRODUCTION

Rationale

The channels used to sell financial products and services in Germany are proliferating…

… with online affinity and partnership marketing having growing rapidly in importance of late

Finaccord

Affinity and partnership marketing publications for Germany

Consumer research publications for Germany

PartnerBASE™

Definitions

Methodology

2.0 MARKET OVERVIEW

Affinities and partnerships in life insurance and pensions

Distribution relationships for life insurance are most heavily concentrated in the banking sector... ... 13

… with most schemes organised directly with underwriters rather than through brokers

Affinity programs for private pension insurance are slightly fewer than those for life insurance

Supplementary pension insurance follows a similar pattern to private pension insurance...

... albeit the duo of R+V and Union Investment accounts for a higher share of partnerships

Long-term care insurance offers a smaller opportunity for partnership marketing...

... although several underwriters have cultivated relationships in this field

Several trade unions are enthusiastic distributors of funeral expenses insurance

AXA’s DBV Winterthur is the most prolific provider to partner organisations in this field

3.0 NOT-FOR-PROFIT AFFINITY GROUPS

3.1 Automotive clubs

Introduction

3.2 Charities

Introduction

Analysis of partnerships

The THW Bundesvereinigung possesses an obvious rationale for offering life insurance

One charity has also established a partnership for long-term care insurance

Funeral expenses insurance is a notable niche market for charities

3.3 Educational institutions

Introduction

3.4 Professional associations

Introduction

Analysis of partnerships

Most professional associations offering life insurance work directly with an underwriter

Deutsche Ärzteversicherung has several partnerships among professional associations

A significant number of brokers maintain relationships with professional associations

Fewer professional associations offer private pension insurance to their members...

... although participation rates for supplementary pension insurance are more significant

The schemes of three professional associations extend to long-term care insurance

Several professional associations may launch affinity products in these areas in future

3.5 Sports organisations

Introduction

Analysis of partnerships

A handful of sports organisations have developed affinity propositions for their members

3.6 Trade associations

Introduction

Analysis of partnerships

Almost one in ten trade associations offer life insurance to their members

Signal Iduna and HDI Gerling each possess several partnerships with trade associations

Only two brokers hold more than one link for life insurance in the trade association sector

Private pension insurance is also quite widely offered to members by trade associations...

... with the same observation applying to supplementary pension insurance

However, very few trade associations have organised long-term care insurance...

... and even fewer still have any involvement in the distribution of funeral expenses insurance

3.7 Trade unions

Introduction

Analysis of partnerships

Volksfürsorge has three exclusive partnerships for life insurance with trade unions

There is little or no rationale for most trade unions to offer private pension insurance...

Funeral expenses insurance is a very interesting niche product for trade unions

3.8 Lifestyle organisations

Introduction

Analysis of partnerships

4.0 FINANCIAL INSTITUTIONS

4.1 Banks

Introduction

Analysis of partnerships

Banks adhere to a variety of bancassurance models for the provision of life insurance...

... although banking sector consolidation is likely to bring about important changes

Some partnerships for private pension insurance differ from those for life insurance...

... an observation which also applies in the case of supplementary pension insurance

Long-term care insurance and funeral expenses insurance are much less widely offered

4.2 Savings and public sector banks

Introduction

Analysis of partnerships

Most savings and public sector banks are active as distributors of life insurance...

... with partnerships being determined mainly by geographical location

Some variations in the partners used are visible for retirement savings products...

...with other differences apparent in the case of long-term care insurance

4.3 Co-operative banks

Introduction

Analysis of partnerships

Several co-operative banks intermediate life insurance through captive brokerage units

GLS Bank collaborates with oeco capital Leben for eco-friendly life insurance

For private pension insurance, some co-operative banks use private sector insurers

Union Investment is the most prolific partner for supplementary pension insurance

Long-term care insurance and funeral expenses insurance are less frequently promoted

4.4 Private banks

Introduction

Analysis of partnerships

Allianz possesses distribution partnerships with four private banks for life insurance...

... and also emerges as the most commonly used partner for private pension insurance

Few private banks sell either long-term care insurance or funeral expenses insurance

4.5 Insurance companies

Introduction

Analysis of partnerships

Mannheimer distributes private pension insurance sourced from Die Continentale

Delta Lloyd utilises an external partner for supplementary pension insurance

For long-term care insurance, DKV possesses at least two major partnerships

4.6 Online aggregators and brokers

Introduction

Analysis of partnerships

Specialised providers are emerging in the market for online broking of life insurance

Some online brokers utilise a single, external insurance company for other products

5.0 COMMERCIAL ENTITIES

5.1 Airlines

Introduction

Analysis of partnerships

5.2 Automotive associations

Introduction

Analysis of partnerships

Automobil-Club Verkehr and Verkehrsclub Deutschland are active as affinity distributors

5.3 Automotive dealership groups

Introduction

Analysis of partnerships

Life insurance is offered by a number of the automotive dealer groups surveyed

5.4 Automotive manufacturers

Introduction

5.5 Estate agents

Introduction

5.6 Football clubs

Introduction

German clubs remain reluctant to launch affinity deals in the area of life insurance and pensions ... 89

5.7 Internet, media and telecoms entities

Introduction

Analysis of partnerships

Most media partnerships for life insurance lie with online brokers rather than underwriters

einsurance and Aspect Online are the leading providers of life insurance

Similar arrangements exist for private pension insurance and supplementary pension insurance

5.8 Online price comparison providers

Introduction

Analysis of partnerships

Only three providers have established searching facilities for life insurance under their own brand

preisvergleich makes supplementary pension insurance and long-term care insurance available

5.9 Retailers

Introduction

Analysis of partnerships

A number of Germany’s major retailing brands are being leveraged to promote life insurance...

... and most are also active in private pension insurance and supplementary pension insurance

Otto has opened a special hotline for inquiries about its supplementary health insurance

Long-term care insurance and funeral expenses insurance are less frequently offered

Under the C&A Money brand, C&A hopes to continue launching new products

EDEKA Bank appears to be growing in excess of the average for Germany

The brands of Karstadt and Quelle are being leveraged with success in financial services

5.10 Travel companies

Introduction

5.11 Utilities companies

Introduction

5.12 Other commercial entities

Introduction

Analysis of partnerships

Deutsche Post: Postbank sold its stake in PB Versicherung to Talanx in 2007

Loyalty schemes: life insurance and pensions seem to have produced mixed results

American Express: active as a distributor of several types of policy

6.0 EUROPEAN INNOVATIONS

Introduction

Key events in affinity and partnership marketing in Europe, 2006-8

Life insurance and pensions

Outside of the UK, new initiatives are mostly limited to the bancassurance sector…

… with two main types of deal occurring between banks and insurance providers

GRAPHICS / TABLES

The affinity and partnership marketing universe

Entities contacted for the research, segmented by broad category

Affinity and partnership marketing schemes for life insurance in Germany: penetration by type of partner

Affinity and partnership marketing schemes for life insurance in Germany: segmentation by operating model and competitor

Affinity and partnership marketing schemes for private pension insurance in Germany: penetration by type of partner

Affinity and partnership marketing schemes for private pension insurance in Germany: segmentation by operating model and competitor

Affinity and partnership marketing schemes for supplementary pension insurance in Germany: penetration by type of partner

Affinity and partnership marketing schemes for supplementary pension insurance in Germany: segmentation by operating model and competitor

Affinity and partnership marketing schemes for long-term care insurance in Germany: penetration by type of partner

Affinity and partnership marketing schemes for long-term care insurance in Germany: segmentation by operating model and competitor

Affinity and partnership marketing schemes for funeral expenses insurance in Germany: penetration by type of partner

Affinity and partnership marketing schemes for funeral expenses insurance in Germany: segmentation by operating model and competitor

Charities offering life insurance, long-term care insurance and / or funeral expenses insurance through partnerships

Ranking of top 100 professional associations in Germany by approximate number of members

Ranking of top 100 professional associations in Germany by approximate number of members (continued)

Professional associations offering life insurance: penetration, operating models and partner market shares

Professional associations offering private pension insurance: penetration, operating models and partner market shares

Professional associations offering supplementary pension insurance: penetration, operating models and partner market shares

Professional associations offering long-term care insurance through partnerships

Sports organisations offering life insurance and / or supplementary pension insurance through partnerships

Ranking of top 100 trade associations in Germany by approximate number of members

Ranking of top 100 trade associations in Germany by approximate number of members (continued)

Trade associations offering life insurance: penetration, operating models and partner market shares

Trade associations offering private pension insurance: penetration, operating models and partner market shares

Trade associations offering supplementary pension insurance: penetration, operating models and partner market shares

Trade associations offering long-term care insurance and / or funeral expenses insurance through partnerships

Trade unions offering life insurance: penetration, operating models and partner market shares

Trade unions offering private pension insurance and / or supplementary pension insurance through partnerships

Trade unions offering funeral expenses insurance: penetration, operating models and partner market shares

Banks offering life insurance: penetration, operating models and partner market shares

Banks offering long-term care insurance and / or funeral expenses insurance through partnerships

Savings and public sector banks offering life insurance: penetration, operating models and partner market shares

Savings and public sector banks offering long-term care insurance and / or funeral expenses insurance through partnerships

Co-operative banks offering life insurance: penetration, operating models and partner market shares

Co-operative banks offering private pension insurance: penetration, operating models and partner market shares

Co-operative banks offering supplementary pension insurance: penetration, operating models and partner market shares

Co-operative banks offering long-term care insurance and / or funeral expenses insurance through partnerships

Private banks offering life insurance: penetration, operating models and partner market shares

Private banks offering private pension insurance: penetration, operating models and partner market shares

Private banks offering long-term care insurance and / or funeral expenses insurance through partnerships

Online aggregators and brokers offering life insurance: penetration, operating models and partner market shares

Online aggregators and brokers offering private pension insurance: penetration, operating models and partner market shares

Automotive associations offering life insurance, private pension insurance and / or supplementary pension insurance through partnerships

Automotive dealers offering life insurance through partnerships

Internet, media and telecoms entities offering life insurance: penetration, operating models and partner market shares

Online price comparison providers offering life insurance and / or private pension insurance through partnerships

Retailers offering life insurance: penetration, operating models and partner market shares

Retailers offering private pension insurance: penetration, operating models and partner market shares

Other commercial entities offering life insurance, private pension insurance, supplementary pension insurance,

long-term care insurance and / or funeral expenses insurance through partnerships

Key events in affinity and partnership marketing in life insurance and pensions in Europe, 2006

Key events in affinity and partnership marketing in life insurance and pensions in Europe, 2007

Key events in affinity and partnership marketing in life insurance and pensions in Europe, 2008

Abstract

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