Prize Indemnity Insurance

The world of insuring lotteries, prize draws and promotions is a complex and confusing place. To negotiate it successfully you need contacts, experience and exacting mathematical and legal knowledge. Luckily, we have all those attributes.

We're one of this market's top five brokers by policy size – our biggest policies cover over €70 million. As a registered Lloyd's broker, we don't need to write business through a middleman. Our experts are familiar with the complex mathematical modelling that underpins prize indemnity insurance. And we always work in conjunction with legal experts to write bespoke, absolutely watertight policies for each client.

A world that turns on unknowns

Calculating prize indemnity premiums is a complex mathematical process. You must understand the situation from a statistical viewpoint, as well as an underwriter's. And the standard rules of specialist insurance apply – only absolutely watertight policies pass muster when it's time to claim.

Over half of the policies we audit are seriously coverage-deficient, and the vast majority priced too high. This is the unknown at work. It's a sign that underwriters simply don't have the information they need to do their job.

Play it safe

Even in this highly complex market, brokers often take a superficial approach – handing over control of risk identification, pricing and policy design to insurers, or even outsourcing the job to completely different brokers.

This means you may not be covered adequately, or may even be turned down on a technicality when you come to make a claim.

Bartlett will go through your business in the detail required to understand the risks involved and how to control them.

Play to win

Taking out prize indemnity insurance means you don't need to restrict your business for fear of being underfinanced for a big win.

You can continue to meet your capital reserve requirements while freeing up resources to use elsewhere – or expand your current business without the need to find more cash.

Wherever you see opportunities arise for your company, you'll have the flexibility to pursue them.

The Bartlett process

Our detailed approach takes hard work – but done by us, not by you. We'll conduct thorough due diligence work with you; this will allow our technical specialists to understand your needs in mathematical terms, seeing where the risks lie and how they can be controlled.

Their backgrounds in mathematical modelling also allow them to engage with the modellers developing your policies. And they'll insist on bespoke policy wording, overseen by solicitors experienced in this field, to ensure that your policy is clear and watertight. It can be tailored to insure all or part of a particular risk, or even take unusual factors into account, like potential tax bills.

We will always do the work ourselves – we'll never outsource your brokering to another firm (this practice is surprisingly common; it's called wholesaling).

Finally, we're as focused on the claims process as on the insurance design – a streamlined process is vital when you're under time pressure to pay out wins quickly. That's why we pre-approve loss adjustors and bring them up to speed on your policy right at the start of the process, allowing them to hit the ground running in the event of a claim.

Find out more about Prize Indemnity Insurance

We hope we've given you food for thought. If you'd like to refer offline to this information, please download it in pdf format. Or if you're interested in a face-to-face conversation, please get in touch.

Andrew Bartlett
Director, Specialty Risks
Email: abartlett@bartlettgroup.com