Massena, New York – It must be a season for miracles. As Brenda Hewlett, 59, put on a helmet, stepped onto the ice and carefully placed herself at the far blue line, she was more concerned with keeping her balance than getting her puck close to the net. The stakes of a 2012 Ford F-150 didn’t cause her much worry, as she hadn’t ever played hockey before this the prize was not realistically in reach. But something happened that no one expected. Brenda put all her strength behind her shot and as it passed the second blue line, the crowd started going crazy. No one held back when Brenda’s shaky untrained shot slid perfectly through the cut-out at the other end of the ice and earned her a brand new $32,000 truck!

With stories like Brenda Hewlett’s going viral and gaining worldwide attention, crowds are looking to get in on the action. Exciting crowds, gaining sponsorship attention and increasing ticket sales, sponsored Hockey Scoros will help achieve marketing goals. This skill based game gives fans a chance to win big.  If the puck makes it through the cut-out in the net, they win the sponsored grand prize. With coverage in place from IC Specialty Brokers, this means you can up the ante with big prizes for a fraction of the cost.  When there is a winner, the insurance covers the pay-out.

Who does this type of policy benefit?

• Sponsors with the goal of increasing purchase intent, sales, traffic and more
• Sponsors who want to generate excitement and get consumers talking about a brand, product or service
• Sponsors looking to cut through the sea of marketing clutter with a new way to connect to crowds

Insuring a prize pool is not that much different than insuring a house or car. It´s all very simple – if there´s a winner (s), the policy pays, not you. A $35,000 prize can cost less than $500. Coverage can also be provided for Shoot Outs and Toss Outs. Looking for a custom solution? Bring us your great ideas and we’ll find a way to make it work.

Click here for more information.

Most every marketer has a “story” of creating a brilliant promotional campaign that failed to consider the promotional risk it generated and was sent to the shredder.  The time and creative energies of the marketing team were wasted because they did not properly address promotional risk.

During the concept development stage every promotional idea is created to achieve an objective.  When promotional insurance is utilized by the marketing team during this stage they are able to leverage their budget and lessen budgetary constraints that often dictate what is possible.  It effectively allows the marketing team to move outside the box on creative thinking, supersize the message, and contributes to the development of effective solutions that meet objectives.  Stop your brilliant ideas from being shredded by presenting a solid plan to address the associated promotional risk with promotional insurance.

A simple example of how promotional insurance works:

If I had a fixed budget of $1,000 for my promotion the best I could do is simply give away $1,000 worth of cash or prizes.  Utilizing Promotional insurance if I introduce a chance to win component to the promotion I can supersize my message and offer $50,000 worth of cash or prizing by purchasing promotional insurance for $1,000.  If the contestant wins the game of chance, you don’t need to worry as the promotion insurance policy will respond to pay the $50,000.

$1,000 versus $50,000.  What carries the bigger impact?  Don’t just think outside the box…crush it…. and throw it away.

Coupons benefit both consumers and manufacturers; they give shoppers an opportunity to get the most for their money, and they give manufacturers a chance to increase their market share.

With easier access to coupons than ever before, coupon usage is on the rise. Redemption rates grew by 27% in 2009*, with over 3.3 billion redemptions seen in 2010.

A segment of these shoppers are changing the face of redemption programs. The percentage of consumers who are “enthusiasts” has grown to 13% of all households in 2010. This segment is disproportionately driving sales, shopping more frequently, visiting shops 1.7 times more than non-users, and buying 1.8 times more annually. Coupon enthusiasts are creating challenges for retailers by emptying shelves and causing massive and unpredictable fluctuations in redemption rates.

One trend is for sure, as longs as buyers feel uncertain about economic security they will look to save on their purchases. Whether it’s extreme coupon users or weak economic conditions, shoppers can expect to see more limits on redemption programs.

Many associations are developing lists of recommended practices that include banning the use of two buy-one-get-one-free coupons that would enable consumers to get both items for free and limiting households to coupon usage only as long as there is sufficient stock to satisfy other customers.

Manufacturers are caught in the middle, wanting to appeal to shoppers and increase market share, while responsibly implementing limitations that will not cause a backlash from consumers.

So how do we manage our budgets knowing redemption levels are fluctuating?  Manufacturers can never really know how many people will take advantage of an offer so the only way to provide security to your bottom line so you can rest easy launching your coupon is using redemption insurance. Redemption Insurance is a secure risk-transfer solution that limits the financial risk associated with higher-than-anticipated consumer responses. It protects your budgets and balance sheets and eliminates the need to set aside reserves for unexpected over-redemption.

Let IC Specialty Brokers show you how to launch high-impact promotions that drive purchase across multiple product lines with peace of mind.

*The Nielsen Company

In March 2011, the owner of North West Wholesale, a pool and hot-tub company in Winnipeg, Manitoba, made a bet with Mother Nature. He struck a deal that if temperatures exceeded 34.5°C on July 18th, customers who purchased a pool, hot tub, or water heater between March 1 and July 4, 2011 would be eligible for a full rebate.

When he randomly chose July 18th as the date to place his bet on, customers didn’t realize that day would fall in the middle of a heat wave that saw temperatures soaring to the mid-30s across Canada. In a season that started with rain and flood in Manitoba, owner Nelson Barrett couldn’t be more pleased with the buzz created from this weather wager.

The Free Pool Giveaway made headlines in local and national news, spurring articles in the Winnipeg Free Press, Winnipeg Sun, and CBC National Radio:

“Pool Owners Holding Their Breath Today” by Daniela Germano, Winnipeg Free Press, July 18, 2011

“As It Happens” on CBC National radio (Part 2: 12:25 mark), July 18, 2011

“Get set for Winnipeg heat record” by Ross Romaniuk, Winnipeg Sun, July 18, 2011

“Free Pool Deal Hot But Not Hot Enough” by Daniela Germano, Winnipeg Free Press, July 19, 2011

The buzz was generated not only by pool purchasers and media but by the general public who were rooting for people to win a free pool. It created a positive news story that attracted lots of attention. The temperature peaked at 33°C on July 18th but that certainly did not dampen the spirits of those close to the promotion. For North West Wholesale, a season of rain and flood had the potential to ruin sales for the year. “This has gone beyond what we expected,” said Barrett. “We spent a little bit of money on this, but compared to what it would cost to run a whole bunch of ads — I think we got way more out of it.”

The free pool offer was backed by a contingent weather policy by IC Specialty Brokers.  It was designed by looking at the historical weather data for the region, and identifying the likelihood of an occurrence of that level. Based on the odds of the condition happening, the insurance policy was issued to eliminate any financial risk. If Mother Nature hit the mark on July 18th, the insurance policy would cover the cost of rebate payouts to North West Wholesale’s customers.

The weather affects how consumers purchase and how retailers and manufacturers market their seasonal products and services. Designing a promotional offer that is contingent on the weather creates a unique twist to a marketing program that can attract consumers and increase seasonal product sales.

Who does this type of policy benefit?

• Retailers with seasonal product that can be heavily affected by weather, such as air conditioners, beverages, sporting goods, and vacation services.

• Retailers looking for a fresh marketing campaign that can generate buzz for a fraction of the cost.

Learn more about how you can use a weather promotion to your advance by speaking to a
IC Specialty Brokers’ expert today.

With temperatures rising and the summer months just around the corner, the wedding season is surely upon us. Couples planning their wedding day ceremonies are flooding bridal boutiques and florist shops.  As their lists are checked off and invitations stuffed, the newly-engaged and their parents are starting to see their bank balances dwindle. The average expected cost of a wedding in 2011 is $23,330, up from $20,129 in 2010*.

Wedding Insurance is an excellent way to ensure newlyweds don’t begin their marriage at a financial loss if, by chance, their day is canceled and deposits are irrecoverable. Some believe Wedding Insurance takes the romance out of their Big Day.  However, when the costs of food, floral arrangements, dresses, tuxedo rentals, limousines, and everything else begin to add up, wedding hosts start to realize the value of protecting their financial commitment.

There are a variety of wedding policies to choose from, and each policy comes with its own exceptions and conditions. Polices can protect against hiccups like:

•    Hazardous weather preventing bridal members from attending,
•    Floral arrangements not being delivered, and
•    Guests causing damage to the wedding hall and contents.

Wedding Insurance rates are based on several factors including the wedding date, location, and level of costs and expenses chosen. So in the off chance the photographer is double booked or the best man gets on the wrong flight, the couple can rest easy knowing they’re protected.

*As per weddingbells.ca annual reader survey.

Conditional Rebates is an exciting way to drive sales and generate interest in a product. Consumers can participate by purchasing the product during the promotional time frame. If the temperature reaches X or it snows or rains X cm on a specific date the consumer receives a rebate of up to 100% on their purchase.

For many retailers this has proven to be an effective method of differentiation in the market, driving sales during critical periods of their sales cycle and building your customer database.

Conditional rebates are most commonly employed by auto dealers, furniture, jewelry, airlines, and seasonal product retailers. i.e. Swimming pools, boats, Jet Ski’s, snowmobiles, etc

Key points:

• The promotion must be structured such that consumers are required to purchase during a defined period. A promotion start date and a promotion end date.
• The event that must occur is known as the “trigger” and the date set for the trigger to occur is known as the “trigger date”.
• The trigger date is then set for a minimum of 14 days after the promotion end date.
• The weather trigger is measured at the closest government control weather station often located at airports.
• The cost of insuring the promotion can be as little a 1.5% of your expected sales for the promotional period.
• A deposit premium of 50% of the expected overall cost of the promotion is required prior to the start of the promotional offer.
• At the end of the promotional period your actual sales must be provided within 7 days of the promotion end date and the policy is amended to cover the final sales figures and
• the additional premium is paid.
• Just remember you have to provide an Alternative Method of Entry/Free to Enter mechanic.

Consider this scenario – A major movie star is filming a motion picture in Europe. The actor has prior contractual commitments that must be satisfied in New York. They will be in New York for a total of three days and then return to the film set in Europe.

Risk: If the actor is delayed, the production company is faced with additional expenses of up to $80,000 per day as the Director, Producer, Talent, Camera Crew, Production, Make-up, and Wardrobe staff sit idle waiting for our actor’s return.

Solution: A specialized travel delay coverage that pays the additional expenses if the actor is delayed as a result of travel arrangements being irrevocably altered, resulting in the inability of any Insured Person to be at the arranged venue for the Insured Performance(s) or Event(s), provided always that such travel arrangements shall have been made so as to provide adequate time for arrival prior to the Insured Performance(s) or Event(s).  Common causes for delay may be due to airline failure, volcanic disruption,  terrorism, or a communicable disease outbreak.

Death, accident and illness and other perils covered by a standard event cancellation wording are not covered by this insurance. It is purely concerned with the disruption of the scheduled travel plans.

The cost of this coverage ranges around 2.25% depending on the particulars of the traveler, time of year, and arrival/departure destinations. Underwriters will always look to include a 24 hour excess – meaning the schedule allows for a 24 hour buffer from the expected arrival of the insured traveler to when they are expected back to their original destination (in this case, the production set in Europe). If the actor returns to the film location in good time, as in over 24 hours before production is due to restart, then the rate is reduced significantly. In some cases, the base rate can be as low as 0.75%.

Municipalities can experience extreme fluctuations in the annual costs of snow removal.  Too few snow days are great for the city coffers but the effects of a winter that has too many snow removal days leading to overtime and additional equipment expense can be devastating.

The unchecked overrun in budgeted expenses will require the municipality to shift dollars from other needy departments or borrow against their financial holdings.

Introduce weather insurance.

Municipalities can purchase weather insurance to even out these annual costs by taking out a policy that provides for incremental payouts for each additional unbudgeted snow day they incur.

Budgets are fixed and cost overruns eliminated.

After the volcanic eruption of Eyjafjallajokull, Insurers scrambled to understand the aggregate liabilities they faced and volcanic disruption became a standard exclusion for event cancellation/non appearance policies.  There are a few markets that are now allowing consumers to buy back the volcanic disruption exclusion at a 3.5 to 4% rate.

A few points of interest:

• Katla volcano is 12 miles from the Eyjafjallajokull volcano.
• Katla is buried under the massive Mydalsjokull glacier – one of Iceland’s largest.
• The Mydalsjokull glacier has more than twice the amount of ice than the current eruption has burned through.
• Katla lies under the Mydalsjokull glacier and concerns scientists because melting cold water and lava causes explosions and ash to shoot into high altitudes.
• Scientists fear tremors at the Eyjafjallajokull volcano may trigger an even more dangerous eruption at Katla – estimated to be 10 times stronger and shoot higher and larger plumes of ash into the air.
• If this happened, it would be considered the worst global devastation in airline history. .

The problem is that scientists have no way of determining if Katla erupts tomorrow or 100 years from now. All we can do is be ready.

Volcanic disruption coverage.

Think about it.

Click here for more information on Event Cancellation coverage

Sponsoring a NASCAR® is a big commitment and investment for Brands and they need to ensure they are getting an ROI. There are a couple of ways insurance can help.

First, to sweeten the deal for the owners and drivers and help strengthen the Brands negotiations, we can create a Contractual Bonus that pays if the driver wins a certain race, series or the championship.  For example – what if a Brand were to offer Dale Earnhardt Jr. $250,000 if he wins the race at Talladega? The fact that there is a chance this could happen means that you can obtain an insurance policy to assume the risk and liability of paying the bonus. Let’s say it costs 15% or $37,500 to put the insurance policy in place. The Brand can position the offer of $250,000 to the team and driver and know that their budget is fixed at $37,500. Win #1.

Second, to help the Brand directly tie the investment of the sponsorship to product sales, we could create another Contractual Bonus, but this time we pay the consumers. For example – the Brand could create a promotion were everyone who purchases their product and registers online before the race would win $5, $50, $500 or even more if Dale Earnhardt Jr. wins. Let’s use the same 15% and say that we want to give everyone a free product. Your product retails for $5, but the cost (including fulfillment costs) would total $2 and you expect 100,000 consumers to register. So, 15% x $2 x 100,000 = $30,000. So for $30,000 you can make a great offer that ties product purchases directly to your sponsorship investment. Win #2.

This is just one example of how Contractual Bonuses could be used with a particular sport, but there are countless ways they could be structured and applied to virtually any professional sport.