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Finaccord A comparison of affinity market trends from within Germany and the UK
A comparison of affinity marketA comparison of affinity market trends from within Germany and the
UK: benchmarking best practiceUK: benchmarking best practice1st July 2009
Expertise in financial servicesWeb: www.finaccord.com. E-mail: [email protected]© Finaccord Ltd., 2009
Finaccord A comparison of affinity market trends from within Germany and the UK
Agenda
Channel ComparisonsPartner Metrics
3-1213 20
Page
Partner MetricsSummary and conclusionsAny questions?
13-2021-22
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Finaccord A comparison of affinity market trends from within Germany and the UK
Channel Comparisons
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Finaccord A comparison of affinity market trends from within Germany and the UK
Definitions of generic affinity / partner distribution channelsp
Financial partners: namely, banks, building societies, credit card issuers, credit co-operatives (Germany)and savings banks (Germany).
Not-for-profit affinity groups: namely, charities, educational institutions, professional associations andtrade unions.
Non-financial commercial partners: including automotive associations, automotive dealers, automotivemanufacturers, estate agents, loyalty schemes, media entities, the Post Office, retailers, travel agents / tour
t tiliti ioperators, utilities companies.
Worksite: namely, employers.
The other generic distribution channels included in the Channel Metrics research (for which data is notshown in the following slides) are direct sales by insurance companies and financial intermediariesshown in the following slides) are direct sales by insurance companies and financial intermediaries(i.e. insurance brokers , including aggregators, and insurance agents).
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Finaccord A comparison of affinity market trends from within Germany and the UK
Germany UK
Financial products investigated
Breakdown recovery insuranceCar finance and leasing contracts
Credit cardsDental insurance
Extended warranties (for cars)F l i
Breakdown recovery insuranceCar finance contracts
Cash ISAsChild Trust Funds
Credit cardsCritical illness insuranceFuneral expenses insurance
Hospital cash insuranceHOUSEHOLD INSURANCE
Investment life insuranceLegal expenses insuranceLong-term care insurance
Mortgages
Critical illness insuranceDental insurance
Extended warranties (for cars)Extended warranties (for electronic appliances)
Health / hospital cash plansHome emergency insuranceHOUSEHOLD INSURANCEMortgages
MOTOR INSURANCEPayment protection insurancePersonal accident insurancePersonal liability insurance
Personal loans / consumer financePRIVATE HEALTH INSURANCE
Interest-bearing savings depositsLife insurance
Loan payment protection insuranceMobile telephone insurance
Mortgage payment protection insuranceMortgages
MOTOR INSURANCEPrivate pension insuranceProtection life insurance
Savings accountsSavings bonds
Supplementary pension insuranceTRAVEL INSURANCE
Work incapacity insurance
MOTOR INSURANCEPersonal / stakeholder pensions
Personal accident insurancePersonal loansPet insurance
PRIVATE MEDICAL INSURANCETRAVEL INSURANCE
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Work incapacity insurance TRAVEL INSURANCE
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Finaccord A comparison of affinity market trends from within Germany and the UK
Distribution share of generic affinity / partner distribution channels in motor insurance in
G d th UK 2007/2008Germany and the UK, 2007/2008
75%% of switchers and new buyers using affinity / partner distribution channels, 2007 (UK) / 2008 (Germany)
60%
45%
Financial partnersNot-for-profit affinity groupsNon-financial commercial partnersWorksite
45%
30% 22.0% 20.0%
15%
0%Germany UK
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Source: Finaccord Channel Metrics reports
6
Finaccord A comparison of affinity market trends from within Germany and the UK
Distribution share of generic affinity / partner distribution channels in household i i G d th UK 2007/8insurance in Germany and the UK, 2007/8
75%% of switchers and new buyers using affinity / partner distribution channels, 2007 (UK) / 2008 (Germany)
60%
45%
Financial partnersNot-for-profit affinity groupsNon-financial commercial partnersWorksite
45%
30%28.0%
33.6%
15%
0%Germany UK
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Source: Finaccord Channel Metrics reports
Finaccord A comparison of affinity market trends from within Germany and the UK
Distribution share of generic affinity / partner distribution channels in travel
i i G d th UK 2007/8insurance in Germany and the UK, 2007/8
75%% of switchers and new buyers using affinity / partner distribution channels, 2007 (UK) / 2008 (Germany)
60%
45%
57.6%Financial partnersNot-for-profit affinity groupsNon-financial commercial partnersWorksite
45%
30%
37.0%
15%
0%Germany UK
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Source: Finaccord Channel Metrics reports
Finaccord A comparison of affinity market trends from within Germany and the UK
Distribution share of generic affinity / partner distribution channels in private medical
insurance in Germany and the UK 2007/8insurance in Germany and the UK, 2007/8
75%% of switchers and new buyers using affinity / partner distribution channels, 2007 (UK) / 2008 (Germany)
60%
45%
56.3%Financial partnersNot-for-profit affinity groupsNon-financial commercial partnersWorksite
45%
30%31.1%
15%
0%Germany UK
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Source: Finaccord Channel Metrics reports
Finaccord A comparison of affinity market trends from within Germany and the UK
Distribution share of the Internet in personal non-life insurance in
Germany and the UK, 2007/875%
% of switchers and new buyers using the Internet as a distribution interface, 2007 (UK) / 2008 (Germany)
60%
45%
UK
45%
30%Germany
Motor insurance Household insurance Travel insurance Private medical i
15%
0%
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insuranceSource: Finaccord Channel Metrics reports
Finaccord A comparison of affinity market trends from within Germany and the UK
Distribution share of aggregators and brokers in personal non-life insurance i G d th UK 2007 d 2008in Germany and the UK, 2007 and 2008
75%% of switchers and new buyers using aggregators or brokers, 2007 (UK) / 2008 (Germany)
60%
45%UK
45%
30%
15%
0%Motor insurance Household insurance
Germany
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Source: Finaccord Aggregation Metrics reports
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Finaccord A comparison of affinity market trends from within Germany and the UK
Operating models used by partner organisations for affinity and partnership marketing of motor
and household insurance in Germany and the UKand household insurance in Germany and the UK
Other / undisclosed100%% of operating models for affinity and partnership marketing schemes
Captive broker
Broker
80%
60%
Multiple underwriters
Single underwriter
60%
40%
20%
0%Germany UK
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Source: Finaccord Affinity and Partnership reports
Finaccord A comparison of affinity market trends from within Germany and the UK
Partner Metrics
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Finaccord A comparison of affinity market trends from within Germany and the UK
Organisations investigated in Germany, 2008/9
ADACAir Berlin
AldiAmazon
American Express
Die BahnDM Drogeriemarkt
DouglasE.ONeBay
Kaiser's TengelmannKarstadtKaufhof
LidlL'Tur
REWERossmann
RWERyanairSaturnAmerican Express
AppleAralAudiAvD
Bayern Munich
eBayEDEKAE-PlusEsso
FacebookFord
L TurLufthansa
Media MarktMercedes Benz
MTVNeckermann
SaturnSchlecker
ShellSony
Steigenberger HotelsStern
Bild ZeitungBMW
Borussia DortmundBreuninger
C&ACoop
Formula 1Frankfurter Allgemeine
Googleguenstiger.de
H&MHagebaumarkt
O2Opel
OTTO PAYBACK
Peek & CloppenburgPenny
TchiboThomas Cook
T-mobileToom
Toyota TUICoop
DER CLUB BertelsmannDeutsche Post
Deutsche TelekomDeutscher Caritas Verband
HagebaumarktHappyDigitsHornbachIhr Platz
IKEA
PennyPorscheQuelleReal
Renault
TUIVodafone
VolkswagenWelt
Yahoo!
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Finaccord A comparison of affinity market trends from within Germany and the UK
Organisations investigated in the UK, 2006/7
AAAge Concern
AldiAmazon
American Express
Daily Mail / Sunday MailDaily Telegraph /
DebenhamsE.ON
Easygroup
LidlLittlewoods
Manchester United F.C.Marks & Spencer
Morrison's
RyanairSaga
Sainsbury'sShellSkyAmerican Express
AOLArgosASDA
Auto TraderB&Q
EasygroupeBay
English HeritageEsso
ExpediaFirst Choice Holidays
Morrison sMyTravel
National Trust /NectarNettoNext
SkySomerfield
Sun / News of the WorldSuperdrug
TescoTexaco
BMWBody Shopbonmarché
BootsBounty
BP
FordGoogleHalfords
HomebaseHondaIKEA
npowerO2
OrangePeugeot
Post OfficePowergen
Thomas CookThomson Holidays
Times / Sunday TimesToyota
VauxhallVirginBP
British GasBT
Chelsea F.C.csma
IKEAJet
John LewisKuoni Travel
Kwik-Fit
PowergenPrimark
QVCRAC
Renault
VirginVodafone
VolkswagenYahoo!
Yell
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Finaccord A comparison of affinity market trends from within Germany and the UK
Leading five partner organisations in terms of frequency / strength of consumer relationships
Germany UK
GoogleAldi
TescoGoogle
Deutsche PostLidl
eBay
gPost Office
BTBootseBay Boots
Source: Finaccord Partner Metrics reports
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Finaccord A comparison of affinity market trends from within Germany and the UK
Leading five partner organisations in terms of total number of actual / viable
customers for motor insurance
Germany UKGermany
ADACVolkswagen
UK
TescoPost OfficeVolkswagen
AldiQuelle
Post OfficeMarks & Spencer
Sainsbury‘s
Source: Finaccord Partner Metrics reports
PAYBACK AA
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Finaccord A comparison of affinity market trends from within Germany and the UK
Leading five partner organisations in terms of total number of actual / viable
t f h h ld icustomers for household insurance
Germany UKGermany
ADACAldi
UK
TescoPost OfficeAldi
QuelleTchibo
Post OfficeSainsbury‘s
Marks & SpencerAmazon ASDA
Source: Finaccord Partner Metrics reports
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Finaccord A comparison of affinity market trends from within Germany and the UK
Leading five partner organisations in terms of total number of actual / viable
customers for travel insurance
Germany UKGermany
ADACLufthansa
UK
Post OfficeTescoLufthansa
Die BahnNeckermann
TescoMarks & Spencer
Thomas Cook
Source: Finaccord Partner Metrics reports
TUI Boots
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Finaccord A comparison of affinity market trends from within Germany and the UK
Leading five partner organisations in terms of total number of actual / viable customers
for accident and health insurance
Germany UKGermany
ADACQuelle
UK
Post OfficeBootsQuelle
AldiOTTO
BootsTesco
Marks & Spencer
Source: Finaccord Partner Metrics reports
Deutsche Post Sainsbury‘s
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Finaccord A comparison of affinity market trends from within Germany and the UK
Summary and conclusions
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Finaccord A comparison of affinity market trends from within Germany and the UK
Summary and conclusionsAffinity and partnership marketing does exist in Germany but some of itscharacteristics are different from the UK;
online distribution channels in Germany, including aggregators, are growing in
-
-importance but are still far less important than in the UK;
not all retailers will be able to have the same impact in affinity and partnershipmarketing as in the UK;
-
many major organisations in Germany (e.g. ALDI) have not yet realised theirpotential as distribution partners for financial services;
since the position of insurance agents as the traditionally dominant distributionh l i i d l d li t iti ill b il bl f ffi it
-
-channel is in gradual decline, more opportunities will become available for affinityand partnership schemes in Germany in future.
Expertise in financial servicesWeb: www.finaccord.com. E-mail: [email protected]© Finaccord Ltd., 2009 22
Finaccord A comparison of affinity market trends from within Germany and the UK
Any questions?
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