Lottoland signs new jackpot insurance deal

Lottoland signs new jackpot insurance deal

Friday, August 4, 2017 Posted by James Walker

Online lotto betting operator Lottoland has announced a third long-term agreement for its Insurance Linked Security (ILS) jackpot insurance.

As part of the new deal, there will be a €20 million increase in ILS coverage provided, bringing the total to €120 million.

Lottoland’s advanced risk management system is now providing total cover in the hundreds of millions and over 50% more than last year.

In total, Lottoland has paid out over €838 million in winnings across its full business portfolio, with one Berlin-based player scooping a €22 million payout.

David von Rosen, founder of Lottoland, told TotallyGaming.com: “The increase in size is due to the rapid growth at Lottoland - meaning that more and more bets are now being insured through the ILS which helped us to get a larger amount of cover.

“Thus volumes are sufficiently high to back the premiums. We’ve been growing considerably when it comes to our B2C operation, not only through international expansion but also through new products.

“The growth of volume is also being triggered by the B2B side. We’ve recently done deals with Kindred, William Hill Australia and Gaming Innovation Group.”

Von Rosen added: “To grow in volume is exactly what we will be doing; the more volume you have the more likely you are to hit the statistic mean of the risk you are carrying. That pleases the investors. The bigger Lottoland becomes the less volatile the risk is, and that is good for all parties involved.”

“We want to be very open and transparent when it comes to the insurance of our risks because there were people at the beginning that were saying it was impossible to insure it and now we have proven that not only can we do ILSs and take them to the next level but we’ve also proven that ILSs and our risk management pays out instantly in large sums.

“In traditional ILSs, which cover natural disasters, investors have to model the risk of a volcano eruption or flood and you never know exactly how you can calculate it. When it comes to insuring lottery risks you can calculate exactly how much it is going to cost you, down to the decimals.

“You don’t know when it is going to occur but you know exactly how likely that risk is and you can assign a specific cost to it. That is the beauty of it from an investor’s perspective. We have some of the largest names in the financial world in that ILS now.

“Lottoland has developed into something of an insurance company, and risk management has become our core competency. It is our key differentiator because it is a disconnected to gambling.

“That is also the reason why many other operators say it is great to partner up with Lottoland rather than try to go to develop risk management expertise on their own, which is clearly outside the normal gambling operations of any big player."

“Obviously, we have the technical integration for the B2B partners and I think we have the best lottery platform available. But more importantly, what we have with our risk management is something which is really years ahead of everybody else and is something we are very proud of.”

Totally Gaming says: Lottoland’s ILS extension will allow for the continued secure payments of jackpot wins. Customers of Lottoland can be assured that as long as the partnership with ILS continues, the security of payments is guaranteed.

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