White-Label vs. Affinity Insurance: What’s the Difference?

The insurance market is changing quickly, and there’s never been a better time for new entrants to take advantage of the embedded insurance opportunity. There are several different ways that your company can do that.

Hypothetically, you could build your own insurance product, but that route is intense, time-consuming, expensive, and complicated. A far more common option is to partner with an insurance provider in one of two ways: by entering into an affinity partnership or by white-labeling an insurance product. But what exactly is the difference between white-labeling and affinity partnering, and more importantly, which option is right for your company? Let’s start with defining terms.

White Label Insurance and Affinity Insurance Explained

What is an affinity partnership in insurance?

An affinity partnership—sometimes called affinity marketing, or click-through affinity—is formed between two businesses when one business provides goods or services and the other promotes them for a certain payment per click.

For example, if your company were to sell insurance through an affinity partner, you would have a link on your website that redirects the customer to the insurance provider’s website to buy the insurance product from them. Each time a customer clicked the link, you would be paid a certain amount, but the premium payments and ongoing customer relationships would go to the insurance provider.

What is white-label insurance?

A white-labeled insurance product is a good or service that is manufactured by one company and then rebranded, and sold by another company for distribution. Unlike affinity partnerships, white-labeling doesn’t simply generate customers and revenue for the provider partner.