Junction to help struggling motor insurers

Junction is aiming to partner with insurers which have taken a hammering in the motor market.

Managing director Peter Thompson says insurers are reassessing their business models, following poor underwriting results in motor and the ever-advancing power of aggregators, and Junction can help them find new solutions.

Junction's staple business is as an affinity provider, but the management have taken a strategic decision to partner with home and motor insurers.

Thompson 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.”