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(What they don't teach you in Insurance School)
We are often asked about the most unusual risk we've ever insured.
The following promotion ranks right up there among them.
A major consumer products manufacturer was celebrating the 85th
anniversary of one of its most beloved cookies. A creative marketing
team devised a promotion that offered a $1 million prize to anyone
who could stack, as in one on top of another, eighty-five of the
cookies.
HCC Specialty Underwriters was asked to insure the million-dollar prize. As you can imagine,
there are no actuarial tables to which our underwriters can refer
when assessing such an unusual risk. We did the only thing we knew
how. We went to a local store, bought several packages of the cookies,
cleared off a conference table and started stacking cookies.
In the end, we came up with a reasonable price for the risk and
the promotion proceeded to a successful conclusion. The top cookie
tower did not reach 85, but when it comes to insuring a brilliant,
never-been-done-before promotion, HCCSU will be right out on that
cutting edge with you.
A London, Ontario Jewelry store needed a leg up on their competition.
As a way to increase sales during the key Christmas sales period,
they decided to employ what every Canadian knows best (besides hockey)
into their 1999 give-a-way; SNOW! In fact, every customer who purchased
qualifying merchandise during the sales period of December 1 - December
26 was automatically entitled full redemption of their store purchases
if it snowed 15 centimeters or more on January 2, 1999.
Did it snow? Although the answer to this question is compelling,
of greater importance is that sales exceeded all expectations during
the promotion period as compared to prior years. It seems that this
creative store owner took advantage of everyone talking about the
weather and did something about it. And yes, snowfall of more than
15 centimeters accumulated, thus INSURING lifelong customers for
the jeweler.
Often our prize indemnity insurance is referred to by the generic
term "hole-in-one insurance." Like any generic term, it
sometimes doesn't capture the complexity of the category. At a recent
made-for-TV golf event, however, it was perfectly appropriate.
HCC Specialty Underwriters recently insured twelve golfers, including nine professionals,
playing 18 par 3 holes, with the opportunity to win $1 million on
every hole. Before you reach for your calculator, that's $216 million
on the line.
The event was broadcast on national television on Thanksgiving
Day. Several shots missed by only inches, creating excitement for
the gallery and the television audience |
Cookie
Stacking
Sun
Par 3 Challenge
