Junction has strong affinity for growth
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