The latest partnership is part of Topdanmark's strategy to supplement its direct-to-consumer proposition with partner distribution channels
One of Denmark’s largest insurance providers, Topdanmark, has partnered with Nordea, one of the Nordic region’s largest banking groups, to expand the reach of its insurance products.
Topdanmark has shown an appetite for partnerships already this year, joining up with leak-detection technology provider HomeServe Labs to deploy the firm’s LeakBot device among its home insurance customers.
This new partnership will allow the insurer to distribute a range of cover from both general and commercial insurance lines among Nordea’s customers.
Peter Hermann, CEO of Topdanmark, said: “Topdanmark is very pleased with the partnership with Nordea. It’s the right match.
“Both Topdanmark and Nordea have customers at the centre and focus on a good customer experience and quality products.
“We have a very strong selection of insurance products that Nordea’s customers can access, and we have good experience working with other companies when we offer insurance.”
Nordea bank director Mads Skovlund showed a similar reaction to the deal, seeing it as an opportunity to increase the banking group’s proposition to customers.
“I am delighted that in close cooperation with Topdanmark we will soon be able to offer our clients the full package of non-life insurance, and I am convinced that our customers will welcome the new opportunities,” he said.
“It has been important for us to choose the partner that can give Nordea’s customers access to the strongest package of insurance policies.
“Like us, Topdanmark has a strong customer focus and will give our customers a safe and competitive offer of insurance in addition to the products we offer ourselves.”
The agreement between the two companies will come into force on January 1 2020, and includes access to private and commercial products.
Among the private products will be home, car and accident insurance — with the commercial propositions including business liability insurance, building insurance and product liability insurance.
Topdanmark’s product distribution strategy
As well as selling insurance direct to consumers through its website, Topdanmark operates several cooperation agreements that include banks to extend the reach of its service.
The firm’s website lists Sydbank and Coop as two organisations it has these agreements with, but Nordea will become the largest banking group it will distribute through.
These agreements allow partner companies to access cheaper insurance cover for their customers and, in turn, act as another avenue for Topdanmark to acquire new customers.
As a supplementary method of distributing insurance, policies sold this way account for little of Topdanmark’s market.
The prime channel to access customers is certified insurance sales agents, which account for 50% of its policies, with 25% distributed through telephone sales, 18% through car dealers, 4% through brokers and 3% through other digital means.