CFC launches two contingency products

Specialist lines underwriting agency, CFC, has launched two new products from its recently established contingency team.

The two policies, prize indemnity and over-redemption, offer up to £20 million and capacity is provided by Lloyd’s of London.

The prize indemnity policy covers everything from hole in one and other sports skill competitions to conditional rebates and lotteries, while the over-redemption policy covers on pack and in store promotions, electronic and paper coupons, loyalty schemes and more.

Matt Helm, contingency practice leader, said: “Prize competitions and coupons or free product offers have become an increasingly valuable marketing tool for a huge range of companies, both on and offline.

“As a result, the contingency market is rapidly growing and there is real potential for brokers to develop profitable business in this arena. However, in my view, many have been constrained or put off by the lack of innovation and low limits.

“In launching these products, CFC is bringing a fresh approach and new capacity with meaningful limits that will help brokers keen to grow their presence in this line of business. We are delivering specialist products straight to brokers, saving them the hassle of trying to place business across several different providers. This means they get a fast turnaround and central underwriting contact, which is a big plus given the nature of what they’re trying to cover.”