Tuesday, 30 May 2017

Nationwide ends motor partnership with LV=

Nationwide, the UK's largest building society, has announced the termination of its motor insurance partnership with LV=, with effect from 30th June 2017. From this date, the society will no longer offer new policies and it is expected that the management of renewals will pass to the insurer. 

The deal, estimated to be worth £5 million per anum, is no longer considered a strategically important one for the society. The end of this relationship also marks the end of one of the last motor insurance partnerships provided by any UK building society. It remains the case however, that most of the major banks continue to provide motor insurance to their customers. 

It is noteworthy that Nationwide's 5-year home insurance partnership with RSA, announced in December 2015, has still not commenced, even though it was scheduled to launch in February 2017 (see our post dated 17 December 2015 for details). This means that Nationwide home insurance continues to be underwritten by UK Insurance, which also provides travel cover on Nationwide's "added value" current accounts. The society partners with L&G for life and protection policies

Friday, 12 May 2017

Virgin Money tries (yet) another partner for life assurance

Virgin Money has announced plans to launch a new life assurance partnership with BGL Group, following earlier efforts with Scottish Widows (2006), Friends Provident (2009) and Friends Life (see our post dated 20th August 2013 for details).

The new 5-year partnership is due to start in Summer 2017 and will include a range of term and critical illness products. Despite the strength of the Virgin Money brand and its apparent attractiveness for many, it is understood that life assurance has previously seen disappointing results. In addition, Virgin Money does seem to change its provider partners on a regular basis, but is currently working with Ageas for home and motor insurance, InsureandGo for travel insurance and UK Insurance for pet covers. 

The more significant development is that it represents BGL Group's first foray into life assurance partnerships, following its many successes in general insurance partnerships with the Junction brand. 

It is not yet clear whether BGL will provide a panel solution or instead, will follow the model of its "Beagle Street" brand which provides life assurance underwritten solely by Scottish Friendly.  

BIBA partners with Marmalade for young driver insurance

BIBA, the organisation representing the UK's 2,000 general insurance intermediaries, has launched a new telematics insurance partnership with Marmalade (itself a BIBA member) for young drivers.  

The product is essentially an enhanced version of Marmalade's own "New Driver" policy and seeks to take advantage of the growing market share of telematics products. Marmalade products are currently underwritten by Allianz and Zenith Insurance. 

Marmalade is a long-established player in the "young driver" market and has also sought to distribute its products through other partnerships; most notably with a number of driving instructors, including BSM and RED Driving Schools. It has previously worked with Ford and Kwik-Fit Insurance.