The misuse of coupons can be divided into 2 groups: mal-redemption and mis-redemption.  Mal-redemption involves more blatant fraud like photocopying or digitally manipulating and printing coupons. Mis-redemption is when a coupon is used for a product not purchased or the coupon is invalid.

New measures are being implemented to reduce the risk of mal-redemption. The GS1 Databar is a new barcode that provides more information and security on a coupon when it’s scanned into a retailer’s system. This ensures the correct product is discounted and helps prevent mal-redemption. Despite this and other new ways to ensure the viability of couponing, a continuing concern over mis-redemption exists.

Mis-redemption is when a coupon is used on a product the consumer has not purchased. This may not seem like a huge concern. After all, what difference would $1.00 off on the wrong product really make to a manufacturer? The truth is, as a onetime occurrence not much, but when it’s a consistent practice for consumers and retailers, the costs can quickly add up. Mis-Redemption can result in immediate cancellation of a coupon program and violations of Federal law which can lead to:

•Increase in the average cost of groceries
•Penalizing retailers who are diligent in their coupon practices
•Accounting for the burden of hundreds of millions of dollars annually in fraudulent manufacturer’s claims

While industry guidelines and proper communication will help to reduce fraudulent redemption, protection against legitimately high redemption is recommended to be put in place. With Redemption Insurance, a budget can be set and manufacturers can rest easy knowing any redemption is covered with a secure risk transfer solution.

Learn more about Redemption Insurance here.

*2012 Inmar Coupon Report.

http://www.megamillions.com/winners/jackpothistory.asp

Winning a large jackpot from a small investment of a few dollars has always attracted people.  Consider the popularity of lotteries, casinos, and even local hockey pools. As a business, how can you cash in on the excitement created by a million dollar lottery?  You could hold the lottery yourself, but most businesses don’t have that type of budget.  A popular and smart method to create interest from prize offerings is by securing it with prize insurance. Prize insurance is a win-win method where offering a large prize or pay-out generates interest from the public, and in the instance there’s a winner, the interest multiplies tenfold.

You can manage the right prize insurance, based on your budget. Insurers look at the type of promotion you want to hold, the number of eligible attempts, and the grand prize being offered.  All that sums up to an insurance premium that guarantees a payout in the event of a legitimate winner.  It’s easy, affordable, and you win either way. Let insurers do the work so you can focus on soaking in the positive media attention.

Insurance can be secured for two types of prize promotions:

Physical    Hole in One Shot
Hockey Scores
Football Kicks
Baseball Tosses

Non-physical    Poker Games
Lucky 5 Games
X of Y Games

March 5, 2009, Michael Jackson, the King of Pop, announces his final tour in front of 7000 fans at the O2 Arena in London.
The demand for presale tickets was extraordinary with reportedly up to 16,000 applications per second made as Michael Jackson’s fans swarmed his website to register for a pre-sale ticket draw.

In two hours, 190,000 tickets were sold and not a ticket was left for the 50 date tour planned from July until March of the following year.  The build-up was more than concert promoters AEG Live and Jackson could have expected.  Never had such a large concert series at a single venue been executed.

Less than three weeks before the first concert date, Michael Jackson passed away, leaving fans and promoters shocked and crushed.  Concert organizers offered full refunds to all ticket holders.  Yet, all the preparation and contracts secured left promoters facing a liability of up to £300 million and an empty venue for the next nine months.

Truly, the This Is It tour is one of the defining examples of the need for Event Cancellation and Non-Appearance coverage.  A policy in place protects against such perils as:
Adverse weather
Utilities failure
Talent non-appearance

Coverage can be arranged for such events as company conferences, weddings, and outdoor festivals.  Only by insuring your event against unforeseen circumstances can you guarantee your bottom line is protected.

Learn more on how you can protect yourself using IC Specialty Brokers’ Event Cancellation Insurance.

Families now begin the long process of gathering and rebuilding. Sadly, there is no guarantee this danger will not resurface over the coming months, as the formation of tornados is triggered by unstable weather conditions which are common in the spring and summer.

How can you or your client protect themselves against unpredictable and destructive storms? National Geographic suggests gathering emergency supplies in advance like food, water, medications, batteries, flashlights, important documents, road maps, and a full tank of gasoline.
The North American Oceanic and Atmospheric Administration (NOAA) also recommends these steps:

• If in a home or building, move to a pre-designated shelter, like a basement

• If an underground shelter is not available, move to an interior room or hallway on the lowest floor and get under a sturdy piece of furniture

• Stay away from windows

• Get out of automobiles

• Do not try to outrun a tornado in your car; instead, leave it immediately

Insurance is also an important element in protecting yourself against the damage caused by storms and tornados. While you can’t control the weather, you can control the financial impact it can cause to your bottom line. Weather Insurance is a risk management tool used to limit diminished profits or increased expenses caused by unpredictable weather exposure. Event Cancellation Insurance can also protect your event costs and expenses or revenues against rain storms.

Learn more on how you can protect yourself using IC Specialty Brokers’ Weather Insurance or
Event Cancellation Insurance.

How can a promoter cash in on that excitement? – with the tried and tested method of sponsorship. The marketing leaders of the world, Coca-Cola, Nike, and Visa, have played this game and succeeded. Most, I’m sure, have heard of the Coca-Cola motto “If it stands still, paint it red. If it moves, sponsor it!” As the world’s most valuable brand, Coca-Cola knows what they are talking about!

Getting your name in the public’s eye produces undeniable results, and attaching it to a magnificent display of athletic ability is a marketer’s gold mine. There are a number of ways to associate your brand with champions. Sponsorship of sports teams and events is a top-rated method. Many prefer to attach their brand name to uniforms, sports gear, and onsite signage. But the potential for these effects to multiply can come from sponsoring a large payout based on achieving a difficult sporting challenge. Not only is the achievement of the athletic challenge an attention grabber, but headlines are amplified by the payout of a huge reward.

Summer is right around the corner and golf is on the minds of many. A Hole in One sponsorship is an easy and effective way to experience this same type of exposure. Sponsoring a Hole in One contest at some of the many tournaments held nationwide gives your brand a chance to hit it big. The best part, a brand can protect themselves against the large payouts with insurance. Yes, there’s an insurance for Hole In One payouts.

Coverage on offering a $1 million dollar payout to 144 tournament players can run a marketer as little as $15,984. If a smaller scale is in mind, a brand can offer a new car for a budget of around $400. Get your brand out there! Your brand can’t do anything for you if it’s not seen. If they win, you win!

Click here for more information.

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.

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.

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

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.

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.