Junction’s new boss is to shake up its new business strategy and broaden its product portfolio.
Peter Thompson, the managing director appointed in January, said he would shift the focus of the affinity arm of BGL Group away from working with brands new to the sector to brands that already offered insurance products through other affinity providers.
“We want to steer the business to more sizeable applications. There’s no appetite for schemes that can’t produce 25,000 customers a year. For a greenfield [brand] to do that is a big ask,” he said.
Thompson said he would also look for ways to move existing affinity schemes involving a single insurer, or solus deals, to Junction’s panel model.
“Solus arrangements have a shelf life and insurers are reacting more and more to that, particularly on motor. They are talking about opportunities to partner [with us], as our model is the most efficient.”
Junction currently focuses on home and motor insurance schemes but could move into commercial lines.
Thompson said any move into the small and medium-sized business sector would most likely be achieved through an acquisition.
Earlier this year, Junction won a contract to provide motor insurance for HSBC, a five-year deal that could deliver more than 300,000 policyholders next year.
Thompson said he wanted to win more deals of the size of the HSBC contract.