UK Personal Insurance Distribution: Banks & Retailers
UK Personal Insurance Distribution: Banks & Retailers, report explores the significance of banks and retailers within personal lines. It addresses the benefits and challenges of distributing through the channels and provides a competitive overview of where retailers, banks, and building societies rank within the home, motor, pet, and travel insurance markets. This is followed by analysis of the main UK retailers and banks with regards to which insurance products they offer, how significant insurance is to them, what customer incentives they offer, and how much they spend on advertising general insurance. The key insurers that underwrite policies for affinities are also analyzed in relation to what their product strengths are, which companies they underwrite for, and what they offer as a partner.
An affinity scheme is a partnership in which an insurer underwrites insurance to be distributed via another company whose primary product or service is not insurance. This includes banks and retailers, which together account for just under a fifth of GWP from the personal lines market. Banks and building societies are strong within home insurance due to close links with mortgage arrangement, and in travel insurance because cover is often provided with added-value current accounts. Retailers are particularly strong within the pet insurance market. Affinities rely on their strong brand identities in order to cross-sell insurance to existing customers, using incentives such as discounts and loyalty schemes to boost uptake. Insurers play to their strengths within the affinity channel; they tend to underwrite lines in which they are already strong. Brokers provide affinities with access to multiple insurers, and thus are still important within the affinity channel - especially in motor insurance.