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October 1, 2018

Open banking continues to open up the bancassurance channel

By GlobalData Financial

The open banking-insurance partnership is fast-becoming the future of the bancassurance channel, with further link-ups announced since GlobalData analysed the trend last week.

Pension specialists PensionBee has recently agreed to have an API on Yolt ’s personal finance manager app. This means that Yolt users are offered PensionBee’s services and can become subscribers through Yolt’s app. PensionBee is an advisory service that helps consumers collate all their various pensions together in one place. It then shows customers their combined balance and how much that would pay out annually if they retired at certain ages. PensionBee also has an open banking relationship with Starling Bank , highlighting how it is smaller, specialist providers that are capitalising.

Yolt previously agreed an open banking partnership with life insurance adviser Anorak , at the end of August 2018. Anorak is a life insurance adviser that asks customers a few questions, then utilises AI to scan policy documents from multiple insurers and picks the top three most suitable.

It is particularly interesting that two of the three insurers selected by Yolt are life insurance and savings-based companies. More simple personal lines products, such as Homelyfe , would appear to be easier to integrate. Yolt also continues to select individual line specialists for home, life, and pension insurance, as opposed to partnering with one mainstream insurer or broker to cover all bases. Yolt now has partnerships across general insurance and pensions, so it can offer full insurance coverage to its customers.

The frequency at which deals between challenger banks and insurers, and mainly specialist and start-up insurers, are occurring highlights how the integration of financial services is a key trend. Yolt is easy to use and very customer-centric and helps place insurance as a day-to-day product, as opposed to something only considered at renewal.

The emergence of open banking is certainly opening doors for insurance start-ups, granting lesser known providers with a platform to sell products and reach new audiences. The holistic approach benefits consumers who can collate all their financial products digitally in one place, and we expect the flurry of partnership announcements to continue.

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