2 minute read
The mutual
Many benefits make up the mutual difference
for over 40% of Capricorn's membership.
Every year, thousands of complaints are received about insurance companies across Australia and New Zealand.
Data from the Australian Financial Complaints Authority for the financial year 2019/20 shows 24% of complaints received were about general insurance. In New Zealand, the figure is worse, with general insurance responsible for 64% of all complaints to the Insurance and Financial Services Ombudsman.
That’s a lot of unhappy people.
Traditional insurance companies are focused on making profits. That creates a great incentive to deny claims and reduce payout amounts, and it’s likely to lead to a lot of complaints from customers about how claims have been handled and the quality of service they’ve received.
With a mutual, the profit incentive is removed. That’s because there are no third-party shareholders: the only people who can protect their assets in a mutual are the mutual members themselves. Or, to put it another way, the members own the mutual.
That’s why so many automotive business owners have made the switch from traditional insurance to mutual protection with Capricorn Mutual. It’s available exclusively to Capricorn Members through Capricorn Risk Services and was created precisely to ensure a better alternative for Members. Capricorn Mutual has paid out more than $200 million in claims since it was established and, unlike traditional insurers, regularly exercises its discretion in favour of paying out claims that are technically outside the scope of the protection a Member has taken out.
Capricorn Risk Services and Capricorn Mutual are regulated by the Australian Investments and Securities Commission. By law any assets and profits of the mutual can only be used to support and benefit members, so any profits are reinvested to benefit mutual Members.
There are other advantages, too. Firstly, Capricorn Mutual offers specialist protection tailored precisely to the needs of the automotive industry. Secondly, in Australia stamp duty and the fire services levy are not charged on mutual protections. Thirdly, Capricorn Mutual doesn’t have to pay income tax on Member contributions, which further lowers costs. And lastly, Members can earn rewards points on protections and can pay instalments at no extra cost.
Ultimately, the more Members the mutual has, the stronger it gets and the more benefits there will be to share. If you’d like to see why you’re better off with Capricorn Risk Services, talk to your Risk Account Manager today.