Frequently Asked Questions
Q Who stands behind Synergy MicroCaptive™?
A Synergy Insurance Services UK is a Managing General Agent for the Insurance Company, and as an Intermediary is authorised by the FSA. Your payment is split by Synergy on receipt, the agreed amounts paid to the insurance company and into the bank respectively.
Some of the most respected names in the insurance industry are behind Synergy MicroCaptive – including Sir Mark Weinberg, the founder of Abbey-Life and Hambro Life Assurance, who is the Executive Chairman.
Q Is Synergy MicroCaptive™ available to every company?
A No – Synergy is only available to companies who have an appetite and capability to manage their risk effectively, and spend over £30,000 annually on insurance across Property, Employers Liability, Public Liability and Motor Fleet.
Q How is the Switch Point set?
A Your broker will discuss with you what switch point you feel comfortable with. The larger the switch point you are happy with, the greater the potential saving to you as we pass on the price reductions that arise out of the switch point directly to you. We generally try and ensure that the switch point is set so that there is a 30%-40% possible saving for you.
Q How has the Synergy MicroCaptive™ concept been received by the insurance market?
A Our insurer has responded enthusiastically to the concept – they are particularly drawn to the idea that companies share the burden of effectively managing risk with them. Independent research demonstrates an overwhelmingly positive customer and broker response to product.
Q What happens if a claim stretches over several years?
A It still depends upon the size of the loss and your Switch Point. If a large claim is upheld, then it will be settled. If the end result is below your Switch Point, then you are responsible as in any other case.
Q How do I pay for Synergy MicroCaptive™?
A You pay for Synergy MicroCaptive™ annually as you currently do for your traditional insurance cover.
Q What happens if my insurance needs change?
A Simply contact your broker and we can work with you to calculate any mid-term adjustments needed. If the circumstances of your firm change materially, for instance if your firm acquires another firm, or the structure of your business changes, then the insurer may require a change in premiums – as would be the case with conventional insurance arrangements.
Q Can Synergy help me to improve my internal risk management processes?
A We recommend you discuss your risk management with your broker. They will usually be able to provide the services of risk management consultants to help you. This is all the more important to you with the Synergy MicroCaptive, since the alignment of interests with your insurer and removal of moral hazard means you benefit directly from any additional risk management measures you take – which reduce the possibility of small claims for you, and indeed large claims.
Q How does Synergy MicroCaptive™ assess whether a loss is small or large?
A Synergy MicroCaptive™ uses our own experienced team supplemented by loss adjusters to assess a loss reserve as soon as your claim is notified. Once this process is finished and you are satisfied that the loss is correctly reserved then this becomes the Setting Reserve and determines who pays the loss.
Q What happens if the claim is settled for much more than the Setting reserve?
A Normally, once the setting reserve has been set, that determines who is liable for the loss. For example if the setting reserve is set above the Switch Point then even if the insurer settles below the switch point, they will pay for the loss. In this way we make sure that everybody is aligned to get the settlement to as low a cost as possible.
There is one exception. Sometimes a small loss may grow into a very large loss because of a personal injury that gets worse or because incomplete information is available at the time of fixing the Setting reserve. Where this happens, and the final settlement is more than 125% of the Switch point, then the Insurer will pay for the loss and you will pay nothing.
Q Which product lines does Synergy MicroCaptive™ write?
A We cover all core-risk categories – including: Employers and Public Liability, Property (Material Damage and Business Interruption), and Motor fleet.
Q What happens if I have a lot of small losses in one year?
A It can happen! Some years are better than others and it is possible that you will have a bad year. However, because Synergy MicroCaptive covers across all the main classes you are effectively spreading your risk. So, for instance, it is unlikely that you will have a very bad year with your fleet drivers AND a very bad year with many small break-ins at your workplace. The best test of this is to look back at your own claims history. When did you last have a year in which you had so many small losses they exceeded your insurance premiums? For well-managed businesses we find that this is very rare.
Q What happens if my small loss account runs out of funds?
A If your small loss account falls below 25% of its opening value during the first [9] months of the term of our contract we will ask you to top it up to [half] the amount that you put in at the beginning.
Please note that you are still liable for small losses even if there are no funds left in your small loss account.
Q How do I get my money back?
A If you are staying with Synergy for another year we will roll these funds forward into the next contract and you will simply pay any SLA top-up needed and the insurance part of the contract and so get your saving immediately. If you have found another insurance solution that suits you better and are leaving Synergy then we send you back the balance of your account less an amount to cover reserved losses and losses not yet notified. Every quarter we will send you back any money that we can release because a claim has been settled.
Q What happens if I am not well-managed today?
A Synergy MicroCaptive™ is not for everybody. You should not choose it if you typically experience many losses in a year. Your broker will be happy to discuss various risk management solutions that can help to get you in a place where it makes sense for you to move to a Synergy contract.
Q What about if some of my risks are well-managed but some are not?
A Synergy MicroCaptive™ is, at its heart, a cross-class product. This allows both us and you to manage our risk across the different classes most effectively. We encourage those firms who have one class of risk which is not performing well to invest in risk-management solutions that can bring them into line.
Nevertheless, in some cases, we can exclude a class of insurance from the Synergy product (eg Motor fleet) if a firm needs more time to get its risk management under control.
Q Can any business be a Synergy customer?
A Like all insurance businesses there are certain categories of business that we leave to specialist experts. This is because in some sectors the risks depend on factors that can only be determined by experts. As generalists, Synergy covers most sectors, however.
Q What happens if a small loss happens years after my policy date?
A It sometimes happens that a liability claim is notified one or two years after the policy end-date. In this case, just as your insurer is still liable for a large loss, you are still liable for the small loss. If you are no longer a Synergy customer, and all your Small Loss Account funds have all been returned to you, then you will receive an invoice to cover the loss. If you are still a Synergy customer or there are funds in your Small Loss Account the loss will be paid out of your SLA in the normal way.
Q Up to what limits can you insure?
A Certain classes, like Motor Bodily Injury, have, by law, no upper limit. For property Synergy will normally cover up to an estimated maximum loss of £10m but we will arrange for excess layers to be supplied up to any limit if you need them.
Q Who manages the claims? Who pays for it?
A We will administer and manage all large losses on behalf of the insurer. As with traditional insurance, the costs of these activities will be met by the insurer. Small losses are administered by us (we respond to your notification and proposed course of action, transferring any monies requested to pay for the loss to you). If you require any assistance with small losses (legal, salvage, dealing with a motor insurance company) then we can provide this service to you at an agreed price. The cost of the small loss, including any Synergy Service Charges would be paid from your Small Loss Account.
Q You are not a charity! How do you make your money?
A Because we manage the underwriting and much of the claims part on behalf of the insurance company we get a fee for this work which is intended to cover our costs. In a year without too many large losses we will also share in the insurance profit.
We also take a small fee from you for managing the Small Loss Account. This is equivalent to the amount that you would have paid in insurance premium tax if it had been insurance premium so the cost to you is effectively nothing.
Q What do I do in the event of a claim?
A In the event of a claim your best course of action is to call +44 (0)207 264 5099 Which will be available 24 hours a day 7 days a week. Alternatively you can email your claim to Claims@synergyinsurance.co.uk
Q Your right to complain
A Although we endeavour to meet our customers’ expectations at all times, we understand that from time to time complaints may arise. Our aim is to resolve any complaints that we receive both fairly and promptly. For more information see our complaints page www.synergyinsurance.co.uk/make a complaint