Junc­tion has strong affin­ity for growth

The Peterborough Evening Telegraph - - Etbusiness - By JOHN KRALEVICH

CITY-based Junc­tion, the UK’s fastest grow­ing in­surance affin­ity provider, has re­vealed am­bi­tious growth plans in a mar­ket­place oth­er­wise seen by an­a­lysts as static.

Both Min­tel and Data­mon­i­tor re­port that the affin­ity mar­ket for in­surance is no longer grow­ing. Non-in­surance brands are now re­spon­si­ble for a sta­ble 24 per cent of the mo­tor in­surance mar­ket.

Not so at Junc­tion, the affin­ity arm of the BGL Group, which is pre­dict­ing that the next year will see its sales of new mo­tor poli­cies grow by 25 per cent. It an­tic­i­pates that the growth will be driven by both the ad­di­tion of sig­nif­i­cant new part­ners and ex­pan­sion within ex­ist­ing part­ner­ships. The three-year com­pound sales growth tar­get is more than 50 per cent.

Man­ag­ing di­rec­tor Peter Thomp­son said: “Ag­gre­ga­tor growth and rate rises are con­tin­u­ing to drive an ex­tremely com­pet­i­tive mar­ket­place, but STRONG RE­TURNS: Peter Thomp­son there are still good op­por­tu­ni­ties for brands not tra­di­tion­ally known for in­surance to in­crease their rev­enue. By tai­lor-mak­ing each model to the part­ner and se­lect­ing in­surer part­ners ac­cord­ingly, it’s pos­si­ble to de­liver strong re­turns.”

New part­ner­ships in the last year in­clude San­tander, Bar­clays and RAC, and the busi­ness has re­cently acquired Brad­ford & Bin­g­ley’s home and mo­tor busi­ness. The BGLowned affin­ity spe­cial­ist has also ex­panded ex­ist­ing part­ner port­fo­lios for brands in­clud­ing Post Of­fice, Marks & Spencer Money and Auto Trader. Other key part­ners in­clude Co­op­er­a­tive In­surance Ser­vices, HSBC and yes in­surance.

In ad­di­tion, Mr Thomp­son also con­firmed re­cently Junc­tion’s de­sire to build di­rect part­ner­ships with in­sur­ers, to en­able them to max­imise their own con­sumer propo­si­tions.

He added: “Brand is a hugely pow­er­ful tool in the in­surance mar­ket­place. Con­sumers place real trust in a known brand, par­tic­u­larly when the prod­uct demon­stra­bly matches up to their ex­pec­ta­tions of qual­ity. Com­bin­ing our in­surance knowl­edge with a re­spected brand can lead to sig­nif­i­cant gains for our part­ners.”

Junc­tion cur­rently has part­ner­ships with, among oth­ers, Post Of­fice, Marks & Spencer Money plc, HSBC, RAC, Auto Trader, More Th>n, Brad­ford & Bin­g­ley plc, San­tander and yesin­sur­ance.co.uk.

It claims to be the most suc­cess­ful and fastest grow­ing per­sonal lines in­surance affin­ity provider in the UK with 1.5 mil­lion cus­tomers un­der man­age­ment and more than £360 mil­lion GWP.

Formed in the au­tumn of 2002, Junc­tion signed a con­tract with its first ma­jor affin­ity part­ner in 2003. By the end of the first year, it was pro­vid­ing sales and ad­min­is­tra­tion ser­vices to eight ma­jor UK brands

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