O2 breaks new ground with Junction partnership

Mobile network operator O2, has recently entered the car insurance market through its partnership with Junction Insurance. It has launched its O2 Drive Mobile App and 2 main propositions - "O2 Drive" and "O2 Drive - Box on Board". The latter uses telematics technology and is squarely aimed at younger drivers. 

The application is an early attempt to harness "Internet of Things" technology, and will use data to encourage safer driving and discounts on insurance premiums. The app is also linked to a range of linked services - motor breakdown, car servicing and maintenance - as well as other discounts and offers already available to other O2 customers.   

The cover is underwritten by Junction's car insurance panel and O2 claims that additional discounts may also be available to customers based on their length of relationship with O2, payment history and type of device. 

For many years, insurance providers have wondered how to develop proportions which might appeal to the technology giants and their massive customer bases. Even though the O2 offerings may not be particularly original, the partnership represents something of a coup for Junction and is likely to be repeated by other technology brands and insurers. 

O2 continues to offer "mobile insurance" underwritten by Telefónica Insurance.

Sun Life replaces Brightside with Junction

Sun Life has announced a new 5-year general insurance partnership with Junction, BGL's specialist affinity arm. The partnership will commence in March 2017 with home insurance, followed in June with motor insurance. Sun Life has already suggested an interest in travel and other lifestyle covers. 

One interesting aspect is that the partnership replaces Sun Life's previous "5-year partnership" (household only) with Brightside Insurance, which was announced as recently as October 2015 (see our post dated 22nd October 2015 for details)! This suggests that the Brightside relationship was not on target to help Sun Life achieve its ambitious target of quarter of a million GI customers within 4 years. 

Sun Life continues to work with BDML Connect for pet insurance (see our post dated 30th September 2015), Golden Charter for funeral plans and Hugh James for will writing. 

Junction remains one of the UK's largest affinity providers and as well as its longstanding partnerships with the Post Office, Santander and M&S, it has recently announced a new car insurance scheme, aimed at young drivers, with mobile brand O2.