In Focus: What role do broker schemes play in supporting affinity and membership groups?

WE ASKED: What role do broker schemes play in supporting affinity and membership groups and how are these propositions advantageous for brokers?

Garry Carlin, head of classic, Peter James Insurance

At Peter James Insurance, we have over 40 years’ experience of developing tailored insurance schemes alongside our affinity partners – in our sector, these are specialist classic car and motorcycle clubs.

In these partnerships, our proposition adopts a club branded nature, which enables us to leverage our partners’ brands and names in the market.

Leveraging these brands comes with responsibilities, so it’s important we take a true partnership approach and develop authentic, close working relationships.

We hold regular, informal catch ups with all our club partners, alongside more formal quarterly meetings.

We support our partners at their events, both in-person and through financial sponsorship. By immersing ourselves in the sector and becoming part of the community, we are able to work closely with our affinity partners to really understand their specific requirements.

We can then tailor our products accordingly and add real value to affinity group members – and by extension, bolster the value of the membership itself.

Encouraging younger people into our hobby not only helps to futureproof these activities and the clubs themselves, but it also ensures we maintain a steady pipeline of future customers.

Alex Hughes, senior schemes underwriter, Hiscox

Broker schemes are essential for providing tailored insurance products to affinity and membership groups across sectors such as sport, contractors, health and wellbeing and professions.

These schemes use specialist expertise to create bespoke propositions that add real value.

They include services such as bespoke risk management, legislative change impact support and comprehensive liability insurance covering affiliated clubs, leagues, coaches and individual members under a single group policy for National Governing Bodies and associations in sport, as an example.

The key to success lies in forming partnerships that understand what is important to the membership and delivering a strong proposition that resonates with customers.

Simplicity and efficiency in accessing and purchasing insurance are vital, enabling members to easily engage with the product. Continuous updates ensure the proposition evolves to address new risks and regulatory changes.

Clear communication is equally important, ensuring that members understand the insurance protection provided and any additional coverage available.

Cross-selling opportunities – such as individual property policies outside the group product – complement schemes provision, as well as enhance member protection and create new revenue streams for brokers.

In essence, broker schemes bridge the gap between the unique needs of membership groups and a comprehensive, efficient proposition, adding value to the management of these organisations.

Simon Henderson, managing director of schemes and affinities, Jensten Group

A close association with affinity and membership groups is important for several reasons when managing broker schemes.

Often, close collaboration helps to enhance understanding of the sector and the needs of the client.

Product development can be specifically tailored to the client, making it a more attractive proposition compared to open market options.

Additionally, being close to a trade association or membership group allows brokers to keep pace with what is happening in that sector. There are advantages for clients in having a broker that truly understands their business, so that any issues and risks can be identified and managed early.

Aligning and partnering with affinity and membership groups delivers engagement, understanding and knowledge, which assists several key metrics – higher customer retention, stronger new business growth and a superior claims service.

This benefits end customers because they receive a superior product and service. It benefits associations because they are working with a specialist that offers their members a relevant and valuable product. It also delivers for insurers, as they win business in sectors that are aligned to their risk appetite.

Of course, it benefits the affinity broker too, as it builds a brand in the sector and can leverage that to win more clients.

Luigi Maggio, director, McCarron Coates 

A scheme broker plays a pivotal role in supporting affinity groups by leveraging its experience and deep understanding of a specific sector.

This expertise enables the broker to build strong and supportive relationships with the membership group, as well as the broader broker market.

Central to the role of the scheme broker is the effective use of industry data and an understanding of its chosen sector’s unique challenges.

This includes addressing the needs of members, particularly in relation to insurance and insurers’ ability to provide tailored products and pricing that delivers defined value and a distinctive competitive edge.

To succeed, scheme brokers must be recognised as a trusted partner within a certain sector, earning the confidence necessary to build critical mass and foster long-term engagement.

By understanding the sector and supporting its needs, scheme brokers play an integral role in mitigating the effects of market cycles for membership groups.

Using the data and insights gathered, they collaborate with insurer partners to ensure consistency in decision-making, while also remaining agile enough to respond to industry changes and evolving member requirements.

Schemes offer significant advantages to brokers, enabling them to specialise in specific sectors and develop a deep understanding of client needs over time. This scale of focus provides valuable insights into performance trends and allows brokers to work proactively with all stakeholders.

This approach ensures the ability to adapt effectively to changing business, regulatory and economic landscapes, delivering sustainable propositions for the long term.