Product innovation is important in securing new Business Partner relationships and revenue diversification.

To provide Life Assistance products that meet the needs of our customers, CPP is committed to product development and innovation. The ongoing enhancement of our existing products and services helps to increase their appeal, penetration and profitability.

In the UK, one version of Identity Protection includes protection against spyware and malware, helping to address the latest criminal attacks and scams. Today, the threat posed to digital identities puts our personal and financial information at risk. If one of our customers suffers an extreme case of identity fraud, we will send an identity fraud specialist to their home to help restore their identity, reputation and access to credit.

In the UK, for some variants of Card Protection and Identity Protection, we also offer Protective Registration through CIFAS, the UK’s Fraud Prevention Service, so that extra checks are made before credit is granted in a policyholder’s name.

Elsewhere, our Airport Angel airport lounge service is contributing towards the success of our Packaged Accounts offer and has strengthened our portfolio of travel products, not just in the UK, but internationally. Our deal with Diners International is a good example of product diversification helping to penetrate new market sectors.

CPP is a multi-channel distributor of products utilising in-branch and Card Activation sales and more recently the web.

Our primary route to market for our Life Assistance products and services is via our Business Partners. Historically, CPP predominantly used outbound telemarketing to complement sales by Business Partners through their own sales channels. However, since the inbound Card Activation sales channel was fully rolled out in 2007, this has evolved into a major distribution channel in the UK, with increased prominence across the Group, particularly in the US, Spain and Germany. Card Activation is a particularly effective sales channel because the call is initiated by the cardholder.

During the activation process, with Business Partner and the customer's permission, Card Protection or Identity Protection is offered to the customer. CPP has also developed a proven competency for cross-selling on an inbound customer service call. In this sales channel, CPP sells products and services to customers calling for ‘service’ on another CPP product or, potentially, a Business Partner’s product. For example, our agent might introduce Identity Protection during a card cancellation and replacement call.

To help improve sales performance in our Business Partners’ own contact centres, our Business Sales Performance team delivers dedicated sales training and coaching. Working at our Business Partners’ sites, the team trains managers and advisors across both contact centres and high-street branches. Furthermore, the team works closely with our dedicated account management teams, helping to answer training requests and provide support on tactical marketing campaigns.

In addition to our other proven distribution channels – including positive option and in-branch retail sales with Business Partners such as T-Mobile – we are developing online and mobile channels. Our online capability enables us to acquire new customers and to service policyholders online. We execute joint online strategies with some Business Partners via their websites, as well as using e-mail and social media platforms.

Developing markets is a key part of our growth strategy and we will continue to look at new markets.

CPP has identified a significant and sustainable growth opportunity in developing markets around the world, where bankable populations are increasing and lifestyles are becoming more complex and sophisticated.

Most recently, CPP launched its business in the developing markets of India, China and Mexico. We launched in India in December 2008 and since then we have established relationships with ten key Business Partners including, most recently, SBI Cards, Barclays, Deutsche Bank and Life Insurance Corporation of India.

In Mexico, we used our experience in Southern Europe to capitalise on existing Business Partner relationships, as well as language and cultural similarities. Following our launch here in July 2009 with HSBC and IXE Tarjetas, we have been making progress to increase the penetration of Card Protection in this market.

In China, we have made progress by signing our second retail agreement with Guangdong Development Bank (GBD), building on a wholesale agreement already in place with this Business Partner. Our first retail agreement was signed earlier in the year with Shenzhen Development Bank (SDB).

Our international expansion is typically based on a strategy of entering the new market with Card Protection, then developing a broader product portfolio over time to meet the needs of the local market. Today, we continue to evaluate new developing markets and investigate international expansion opportunities as a core part of our business strategy.

The Leapfrog acquisition complemented our existing travel products and helped build new sector competency.

Acquisitions have played a supportive role in CPP’s growth strategy. Since 2000 we have acquired a number of established businesses, adding scale and depth to the Group.

The purchase of Homecare, an insurance and household warranty company, in April 2001, gave CPP a presence in the mobile phone sector. Today we provide mobile phone insurance for companies including T-Mobile, Meteor Mobile and the RBS Group. International expansion has also been supported by strategic acquisitions. For example, in July 2003 CPP acquired Metris in the United States, giving us an established presence in this important market.

Most recently, to support our business development and future growth in the UK, we purchased the Leapfrog Group. Leapfrog specialises in sales promotion and international access to airport lounges via its Airport Angel product. Airport Angel gives customers access to a network of more than 560 airport lounges across 320 airports worldwide, with complimentary facilities such as food and drink, business facilities and a host of support services available.

The Leapfrog acquisition was important because its products and services have enhanced our Packaged Services division, which is a key area of growth, and will help us to develop a broader range of travel services. Leapfrog’s product portfolio and associated services are now integrated into CPP, with the newly created division known as CPP Travel Services and a new joint venture called i-deal Promotions Limited.