Redemption coverage

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Under a Redemption Coverage (corresponding translation: "Return Insurance"; of closely Redemption = redemption, redemption.) Is an insurance in the field of insurance as part of the risk management understood a company. Redemption coverage can protect a company's marketing measures against excessive returns (e.g. with money-back guarantees) or unforeseen high demands (e.g. with voucher campaigns). In Germany, this form of protection originating in the USA is not yet widespread, which is why many marketing campaigns are carried out without such protection. The number of insurance companies that offer this type of risk management is still low in Germany and particularly in Europe. In the United States, however, sales promotions with protection against marketing risks have been carried out since the 1980s.

origin

The principle of redemption coverage was developed in the 1980s by Bob Hamman , a multiple bridge world champion. In 1986 he founded the US, Dallas, Texas based agency SCA Promotions , which carries out this form of risk management to this day. The term "Redemption Coverage" was only developed and patented by EMIRAT AG in Munich in 2004 and is now used worldwide as a generally applicable term for this insurance.

Examples of applications

  • Promotions with a money-back guarantee
  • Voucher promotions
  • Collection campaigns
  • Discount promotions

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