A calculated guess: insuring contests is for experienced underwriters, not the faint of heart (it takes math and a little luck).(The Last Word)

Best's Review, December, 2007 by Dankwa, David

It's a numbers game even when it doesn't appear to be. What are the odds of a random fan at a National Football League game kicking a 40-yard field goal to win a brand new car, or amateurs at a golf tournament sinking holes-in-one to win $50,000 per hole? What about the odds of the Boston Red Sox winning this year's World Series or the Denver Broncos the 1996 Super Bowl?

If you're a company that assumes promotional risk, such as SCA Promotions, you have a databank of numbers that could help you price this risk.Your loss experience is your best friend. It's Vegas-style betting, without much of the glitz. And sometimes, it's about underwriters around a table full of cookies trying to price the possibility a consumer would be able to stack 85 cookies, one on top...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.