Aviva’s Tesco deal signals rising importance of affinity channels in protection

GlobalDataFinancialServices

Mon, May 18, 2026 at 10:01 AM EDT 1 min read

A GlobalData survey shows that the UK critical illness insurance market remains highly concentrated, with leading brands using scale and distribution partnerships to extend customer reach. As providers seek to address persistent underinsurance across UK households, partnerships with established retail brands may become increasingly important to increase awareness and improve accessibility.

GlobalData’s 2025 UK Insurance Consumer Survey shows Aviva accounts for 33.6% of UK critical illness insurance policies, well ahead of competitors including Legal & General (9.5%), HSBC (8.8%), and Royal London (8.8%). Aviva’s scale provides a strong platform to broaden protection distribution through affinity and embedded channels.

Aviva has announced a new agreement with Tesco Insurance, under which Tesco customers will gain access to Aviva underwritten life insurance products—thus extending Aviva’s reach into mainstream consumer distribution. The partnership reflects wider industry efforts to simplify access to protection products and integrate insurance into familiar consumer ecosystems. Large retail and banking brands offer insurers access to high-volume customer bases, established consumer trust, and recurring engagement opportunities. These factors can help support cross-selling and improve conversion rates.

For insurers, retail partnerships provide a route to address longstanding protection gaps without relying solely on traditional advised distribution. However, competition for embedded and affinity partnerships is likely to intensify as major providers seek greater scale and visibility in a market where brand recognition and distribution reach remain key competitive advantages.

"Aviva’s Tesco deal signals rising importance of affinity channels in protection" was originally created and published by Life Insurance International, a GlobalData owned brand.

The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.