New product has unbeatable loss ratio

In what might be seen as a effort to grow business in the personal lines household market (or simply the result of too much mulled wine), Lloyd’s insurer Talbot announced it had launched an unprecedented policy to protect families against the Grinch at Christmas.

It’s not known whether the insurer got any bites from policyholders interested in purchasing the event cancellation coverage. But Backchat wonders if that could have something to do with the stringent policy terms.

Families must prove that nothing was left in the house by the Grinch on Christmas morning including a speck of food — unless it was too small for even a mouse.

Given that Christmas has now past, the loss ratio will probably look pretty healthy. Perhaps a better bet than the North American catastrophe business?