Insurance Against Loss

Good morning esteemed posting colleagues!

I have one new business idea today which is rugby related enough for here (please tell me kindly moderators if I misjudging this!) and please help me providing some market research feed backs in which case I will be greatful.

The idea is Loss Insurance. And come originally from my mind pondering on AIG sponsor to the all blacks.

So the proposal work like this:

We all know that the loss can be devastating especially in the big tournament and really nothing makes it feeling better, but what about whenever your favourite team lose you get paid the dividend? Is make the silver lining to the loss in my mind.

So it works like this, the fans take out the policy against the union for example England fans can take the loss insurance policy with the RFU. They pay some premium to starting the scheme and this money go to the union and get managed through the insurance fund. Then is some annual payment by the member such as normal insurance policy. But when the team losing you get made the payout from the union which is base on the odds about the loss and the value of the premium pay by the member. On the end of year once the scheme take its administration fee then the money not paid out to the fan is pay some dividend back to the club and they can make the players a bonus payment for winning! or reinvest to the union or member clubs and make better the infrastructure.

This is better than just put the bet against your team winning on some gamling site because there is a lot benefits and more thorough than that as follow:

You can see in my mind this starting point lead to some kind of genius because there is the method of funding for all unions, and especially ones much likely to losing but wealthy and maybe think they better than they are! So you can test your knowledge and genius against the union rating of itself!

Second, it makes the chance to exploit such unions as has "too big head" opinion on themself and setting the dividend too high and so helps all make some level expectation.

3. The insurance policy can be trade just like the other financial instrument, so by plot the value of the policy or option and future derivative we have another method to rank teams in order!

4. It's fun to play with some small amount of money in trading future contract on the other teams to test your knowledge about rugby and bet on the trends you think. For example, will Wales get very good soon? or will Australia fall apart? so you can short and go long on the policy for that union.

This is mostly the sketch out of my idea. But can get more complex in variety of the policy. For example just "world cup insurance" or "six nations inurance" or "lions tour insurance" or the cheaper "friendly tour insurance".

For example marketing strategy is you get a free £1 loss insurance policy when you buy the team shirt or buy the ticket to the game. Of course is not really free just add to the price. But might be some way for AIG to get "on-side" skeptical all blacks fans to begin with.

Plus is the informal way for a big financial company for example hedge fund to invest in the successful for some team as the premimum start to go down as the team start to win more and then eventually come the big pay out on small investment.

What do you think about it?

Much easier to simply place a bet with a reputable online gaming site. They offer better returns than insurers do and you have the added advantage of odds being shortened on the "home" team due to patriotic better, so you get better value betting against them.

I have heard of teams taking out "win" insurance, so that they can afford to pay bonuses etc.

PSW, how do you knowing what the return is? I didn't share are projections. But did you do any numbers a little bit?

Is also some way to sponsor your team and funding instead of make the spread bet or fund some bookie.

err just bet-- lol

you do realise by insuring you are just losing pts to a middle man- the insurance firm would only hedge the bet to a bookies anyway!!

Think it through mystri! you can get the "no loss discount" for next policy when there is the grandslam! To bet is just loss the money.

Plus you lost money to the middle man when you bet, even if you go bet on some betting exchange.

No loss discount lol- are you on a wind up pal. lol

if there was a no 'claims' discount applied , then that would mean no win or no claim. Break that down and it means odds would just go up next time anyway, because the team in question didnt do well, or did do well. Either way the potential bet to return is cheaper next year anyway

Claim discount just mean your renewal for next year 6N is discount. You still get paid if they not winning! (unless you opting not to claim). You see it work like this: policy holders are entitle to a share in the compensation pool when the team lose according to how many redeemable units you claim on which are issue just like a share. So you can buy £200 worth of compensation and get 20 units but then claim just on 5 because the loss was close. Then also the union might chose to pay out the bigger compensation because the defeat was humiliating! (like the recent 60-0) or might chose just some small compensation because really there was some close loss and feel like some "moral victory". So you see we can give some real tangible value on to things that used to be just some term used in a "WUM". Imagine actually getting some money on the moral victory!! it would shut up all those people who use the phrase like the insult.

So to betting - Well the odds will fluctuate depend on what other fans, market maker or bookies thinking so just because you win then get a lot injuries to the team or someone think you "lucky" or get the bounce or too many home fixtures or other team get better then you losing. But whereas insurance policy get cheaper just because of your loyalty to the schemer.

Im glad to see that jail hasnt stopped Allan Stanford trying to get his business back on track.

Hmmm. I think I'm not sell this genius idea so well. Maybe I will make the video presentation and put to youtube and you can see it in fullest glory with the dazzling lights and dancing girls and comforting marketing scenes of the happy family on the sunny weekend.

Ok AWOP - youtube presentation sounds great

I will invest some serious time in this and make you compelling to sign up.

The only way i will sign up is if i can hedge the position down the bookies and win either way

or one of your dancing girls sorts me out

mystiroakey wrote:The only way i will sign up is if i can hedge the position down the bookies and win either way

You will expose yourself more on the bet than via the structure of my insturance product Mystry! All you will do is write off a portion of your loss (gain) when you win (lose). Because you chose how much you wager (claim) after the match result is known, rather than before. Clever isn't it? Yes some kind of genius. Maybe you need to wait for the youtube performance to understanding.

what the heck are you on about awop.

Look i will give you the quid if you sort me a dancing girl

It's not a ponzi scheme. It's a legitimate insurance product!

Mystri, so with a bet you must put first your money and if you losing the bet, you losing the money.

But with my insturance product you are covered for the whole series and you only "lose" if you team winning all the games, but then you get the no claim discount for next insurance you buy and your team keep the money.

Now imagine you "win" (your team lose) well then you can claim the dividend per insurance unit so the more you invest the more you can claim from the total compensation pot. Or you can not claim and roll over the insurance unit to the next game!

The value of the unit to insurance is base around the likelihood that the team fail because the unit get traded to the open exchange so the market set the value.

You can then hedge by buying either buy the opposite team insurance or by the option on the insurance to the other team.

It's a win-win and everybody make the money.

THEN a struggle team can raise their own captial by invest heavily in insurance against their own loss using for example their national stadium as collateral on a load to afford the insurance.

THEN we can bundle up the collaterialised insurance on collection of tier-2 teams and re-sell it as the complex product! For example you can invest in the bundle of CLI on the whole pacific region! And this will always go up in value because you knowing that the team always improve because the IRB invest in them from all the money they making at the RWC!!! and is guaranteed by the government for tournament loss like NZ. I say to you IS GENIUS!

anotherworldofpain wrote: everybody make the money.

Except the welsh regions

Everyone makes money.... hmm, not quite. If someone receives $100 then someone has to pay it.

The problem with rugby and financing is that the national game for tier 1 sides is already reasonably well structured. We are now at a stage where investment and payoffs take years to see genuine positive impacts and spending a few millions here and there isn't going to have massive changes in performance... its called the rate of deminishing returns.

It would only work if only one or two sides did it against the majority that didn't... if every tier 1 side did it then we'd be at a level playing field once more but the costs/losses would be far greater. We'd have to spend millions more than we do now just to get a marginal improvement in performance.

I doubt anyone in the home unions will be looking to put up their own assets as collateral given the see-saw nature of the game. ENG were world champions in 03... within 2 years they were struggling to be the 8th best side in the world. Are ENG going to risk Twickenham for a few extra million?

In terms of complex products... I've worked with these instruments for the best part of 10 years and its the last thing anyone wants to introduce into the world of sport... why, because very very few people truly understand them and even fewer are able to control them.

The risks far outweigh the gains I'm afraid.

Perhaps you have an idea in terms of offsetting financial losses in downturns in fortunes of both the team and the economy and its consequences to advertising revenue, ticket sales etc (i'd be amazed if they don't already do this) but the last thing we want to do is to get quickbuck artists involved in the running of the game. All it does is spell danger, debt & liquidation.

Peter Seabiscuit Wheeler wrote:

anotherworldofpain wrote: everybody make the money.

Except the welsh regions

fa0019 wrote:Everyone makes money.... hmm, not quite. If someone receives $100 then someone has to pay it.

The problem with rugby and financing is that the national game for tier 1 sides is already reasonably well structured. We are now at a stage where investment and payoffs take years to see genuine positive impacts and spending a few millions here and there isn't going to have massive changes in performance... its called the rate of deminishing returns.

It would only work if only one or two sides did it against the majority that didn't... if every tier 1 side did it then we'd be at a level playing field once more but the costs/losses would be far greater. We'd have to spend millions more than we do now just to get a marginal improvement in performance.

I doubt anyone in the home unions will be looking to put up their own assets as collateral given the see-saw nature of the game. ENG were world champions in 03... within 2 years they were struggling to be the 8th best side in the world. Are ENG going to risk Twickenham for a few extra million?

In terms of complex products... I've worked with these instruments for the best part of 10 years and its the last thing anyone wants to introduce into the world of sport... why, because very very few people truly understand them and even fewer are able to control them.

The risks far outweigh the gains I'm afraid.

Perhaps you have an idea in terms of offsetting financial losses in downturns in fortunes of both the team and the economy and its consequences to advertising revenue, ticket sales etc (i'd be amazed if they don't already do this) but the last thing we want to do is to get quickbuck artists involved in the running of the game. All it does is spell danger, debt & liquidation.

Don't let a few poorly regulated greedy global financial giants mismanaged by out of touch fat cat old boys networks who were only interest in themselves put you off! This is the great opportunity!!

I'd be interested in this scheme, but sadly my money is currently tied up in an investment opportunity headed by a Nigerian prince.

Apparently, now that he's got my bank details, my dividend will be with me soon. I guess he must be very busy on this project as he's not answering my emails.

I am sure it will all working out Sugar. Maybe they lost the money and you need to sending again?

anotherworldofpain wrote:I am sure it will all working out Sugar. Maybe they lost the money and you need to sending again?

Thanks That must be it.

Yeah AWOP im in pal- But first i need to meet up with ya , I am london a couple of times a week. Just let me know

Ok mystri we will make the startup business to do this.