Wednesday 09 April 2025 - Thought Leadership

Improving Sales and Customer Interaction Through Prize Indemnity Insurance

Auto dealerships are constantly seeking innovative strategies to attract customers, boost sales, and differentiate themselves from competitors. Through Tokio Marine HCC – Specialty Group’s Prize Indemnity insurance, policyholders are provided with opportunities to excel beyond their competitors in achieving these objectives.

For example, a car dealership who is seeking a sales promotion to help them drive sales can offer customers a full or partial refund on any purchases made during the promotional period if it snows enough to trigger the payout. By leveraging weather promotions, the dealership can expect augmented sales, an increase in brand awareness, to turn customers into lifelong customers, and to retain its customer base in a highly competitive category.

 

Prize indemnity insurance permits auto dealerships to offer substantial prizes, such as cash rewards, refunds, or high-value items, during promotional events. In the event a customer wins the prize, our coverage absorbs the cost, rather than the business itself. This arrangement allows dealerships to present appealing offers without incurring the financial burden associated with the prize.

Sample Concepts for Auto Dealers:

  • “Lucky Key Grab” - Customers can win a brand-new car if they show up on the designated promotional day and take a test drive. Everyone who takes a test drive gets one opportunity to pick a key from the trunk of a car. If the key starts the engine of the promotional car, he/she wins the car!
  • “Sports Challenge” - Every person who buys a car on a designated day gets the opportunity to predict the scorecard for their local sports team. If they predict the correct scores they win. 
  • “Canada Day Fever” – Customers who purchased a car in the month of June have a chance of winning a full refund if the temperature hits x or higher on July 1st. 
  • “Guess the VIN Number” – Customers have a chance at winning a car by submitting an entry with a VIN # prediction. If it matches the randomly generated VIN #, they win the car!
  • “Dice Roll” – Customers have a chance at winning a car if they roll six dice and they all land with your dealership’s logo facing up.

Benefits:

  • Increased Customer Engagement: Offering substantial prizes as part of a promotional campaign can significantly increase customer interest and engagement. Customers are more likely to visit the dealership and participate in events when there is a chance to win valuable rewards.
  • Enhanced Brand Image: Prize indemnity insurance allows dealerships to host exciting and high-profile events, which can enhance their brand image and reputation. Successful promotions can lead to positive word-of-mouth and media coverage, attracting more potential customers.
  • Boost in Sales: By incorporating rewards into promotional campaigns, dealerships can attract more customers to visit their showrooms and participate in events. This increased foot traffic and customer engagement raise the chances of making sales through additional inquiries, test drives, and transactions. Prize indemnity insurance allows dealerships to conduct these promotions without financial risk, providing a cost-effective method to enhance sales figures.

How Specialty Group Can Help:

At Tokio Marine HCC – Specialty Group, we understand that every dealership has unique marketing objectives and customer demographic. That’s why our experienced underwriting teams work closely with you to design custom, results-driven prize promotions tailored to your specific goals – whether that’s driving showroom traffic, building brand awareness, or increasing conversion rates.

Our expertise in developing creative and high-impact promotions allows you to offer bold incentives without taking on the financial risk. With Tokio Marine HCC – Specialty Group as your partner, your dealership can stand out in a crowded market and deliver unforgettable campaigns that convert browsers into buyers and first timers into lifelong customers. 

Contact:

Scott La Croix
Vice President, Head of TMHCC Specialty Canada Operations
[email protected]

Robin Lang
Vice President, Contingency Underwriting
[email protected]