Insurance News Archive
New product 'cuts commercial insurance costs by 40%'
Well-managed, medium sized businesses could save up to 40 per cent on commercial insurance premiums with one insurer's new products, it has claimed.
Synergy Microcaptive Insurance has launched what it calls "the biggest innovation in commercial insurance for several years", for use by businesses spending as little as £50,000 annually on insurance.
The new product is said to reward companies that are well managed, reducing their premiums by up to 40 per cent because they will not have to pay for the mis-management that leads to bad claims of other companies.
Specialist business insurer Inter Hannover, the main insurance arm of Hannover Re, will underwrite Synergy Microcaptive and has pledged to collaborate with Synergy Microcaptive for five years.
The policy can cut businesses' costs by investing between 30 and 40 per cent of the premium into an interest-bearing account and using the account to cover small losses. Companies that make low or no claims, the insurer claims that the company gets the money in the account back.
17 May 2007
