Over Redemption Insurance
Success surplus of an advertising campaign (satisfaction guarantee, coupon promotions, crown cap promotions etc.):
For optimum success of their advertising efforts, advertising agencies are constantly striving to create new and creative promotional campaigns, applying state-of-the-art media.
In doing so, it is very difficult for the organizers or agencies in charge of the budget to assess in advance the progress and the customer response of a campaign. Within contractually defined limits, an over redemption insurance covers the financial risk resulting from an unexpectedly high response rate of a promotional campaign. Promotional campaigns of this kind include collect-and-win promotions, coupon promotions, instant-win promotions, gift promotions, money-back guarantees (try me free), direct mail, bonus programs.
The financial burden resulting from the expected response rate plus an adequate safety margin is to be borne by the policy holder as a deductible. Pre-defined areas in excess of the safety margin are insured for a risk-appropriate premium.*
* Source: Strehl, A. (2014): Die Prize Indemnity Versicherung als Marketinginstrument zur Umsetzung hochwertiger Verkaufsförderungsmaßnahmen, p. 256