Junction aims for growth despite static market

Junction, the UK's fastest growing insurance affinity provider, 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.

Junction, however, 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 over 50 per cent.

Managing Director, Peter Thompson, said: "Aggregator growth and rate rises are continuing to drive an extremely competitive marketplace, but 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 for Junction in the last year include Santander, Barclays and RAC, and the business has recently acquired Bradford & Bingley's home and motor business. The BGL-owned affinity specialist has also expanded existing partner portfolios for brands including Post Office®, Marks & Spencer Money and Auto Trader.  Other key partners include Co-operative Insurance Services, HSBC and yesinsurance.  In addition, Peter Thompson also confirmed recently Junction's desire to build direct partnerships with insurers, to enable them to maximise their own consumer propositions.

Peter Thompson continued: "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."