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Press Release

Junction Targets New Insurer Partnerships

Immediate release: 22 March 2010

Junction, the UK's fastest-growing insurance affinity provider, has launched a strategic drive for new partners in the insurance sector.

Junction is best known for its partnerships with leading non-insurance UK brands such as Post Office®, M&S Money and Auto Trader, plus major banks including HSBC, Santander and Barclays. It additionally offers products for leading insurers, including Co-Operative Insurance Services, Yes Insurance and RAC.

The new strategic approach sees Junction looking to partner with motor and home insurers that are seeking access to distribution expertise in order to create value. In addition, Junction will continue to grow its core affinity business with leading non-insurance brands.

Peter Thompson, Managing Director for Junction, said: "We have built a number of very successful relationships with non-insurance partners where combining our respective skills is driving significant value. We believe there is an opportunity to do something similar with insurers. The trend towards selling more insurance online, particularly through aggregators, combined with recent poor motor underwriting results, is forcing insurers to reassess their business model.

"Junction is uniquely placed to assist insurers: our recent results demonstrate our success in driving distribution income in this 'new world'. We see opportunities to work with insurers in a number of ways, such as assisting them going direct to consumers, supporting their entry into new distribution channels or providing expertise to allow them to compete more successfully."

Junction already has a number of strong relationships with insurers, through the panel arrangements built for its partners. It is talking to these organisations around potential partnerships and is actively seeking opportunities with other insurers.

Peter Thompson continued: "We're confident that insurer partnerships will be a real growth area for us. Our existing IT capability, marketing expertise, experience of generating ancillary income and sophisticated pricing strategies offer major benefits to potential partners. We offer a way of providing broker experience and capability through a strategic partnership that is customised and aligned, rather than through the traditional broker-insurer relationship."