Thursday, 17 December 2015

Nationwide partners with RSA for UK's largest building society affinity deal

Nationwide Building Society has announced a new 5 year home insurance partnership with RSA, which will take effect from February 2017. The account, which has been held by Direct Line Group (DLG) for nearly 15 years, was worth just over £200m to the insurer in 2014. It is understood that the business was put out to tender by Nationwide in 2014 and there have been market rumours since Summer 2015, that RSA would be its new home insurance partner.   

The loss of the partnership represents a considerable blow to DLG's home insurance account. Not surprisingly perhaps, DLG has suggested that the Nationwide partnership was not as profitable as other household business and has emphasised that policies will effectively be "run-off" until Spring 2018.  

Nationwide is likely to be RSA's largest corporate partner and gives the insurer even greater market presence with mortgage lenders, where it currently works with a range of banks (Yorkshire, Clydesdale and Bank of Ireland) and building societies (including Yorkshire, West Brom and Nottingham). 

Nationwide continues to partner with LV= for motor insurance and Legal & General for life and protection products. 

Friday, 4 December 2015

Asda cuts short its Brightside partnership

Asda Money has announced the end of its motor insurance partnership with Brightside; at least for new business. The two organisations have worked together since 2012, when a home and motor insurance partnership was signed, with hopes of generating £70 million GWP "within 18 months". 

The motor partnership was renewed in March 2014; supposedly for a period of 3 years and in March 2015, Brightside signed a deal to provide a motor aggregator to Asda Money customers. It is understood that following this decision, Brightside will remain the provider for Asda Money's car and van renewal book. The Hood Group replaced Brightside as home insurance partner in July 2014, with policies underwritten by RSA.

The suggestion has been made that this is a strategic decision by Asda to wind down new business sales of its financial services products, but at this stage, it is not known how and whether this will impact on the retailer's other insurance partnerships.  

Asda has a reputation for its frequent changes of insurance partners and relatively short-term deals. At the time of writing, it also works with BDML Connect for pet insurance and, since October 2015, with Insure & Go for travel insurance.