Mutually beneficial

How Capricorn Mutual has helped Capricorn Society further its mission.

Like Capricorn’s establishment back in 1974, the creation of Capricorn Mutual Limited in 2003 was all about meeting a critical need for Members and their businesses. At the time, small businesses in Australasia’s automotive aftermarket were finding it increasingly difficult and expensive to get insurance, following the collapse of HIH Insurance in 2001.

Capricorn decided to step in to help Members, establishing Capricorn Mutual as a discretionary mutual that could ensure that Capricorn Member’s assets and businesses were protected. That first year, about 1,000 Members signed up, and Capricorn Mutual wrote A$2.2 million in contributions. In 2023, Capricorn Mutual protected 12,000 Members and wrote almost $122 million in contributions.

In just two decades, Capricorn Mutual has become critical not just to Capricorn’s business but to the businesses—and the peace of mind—of our Members.

Capricorn Risk Chief Executive Rod Scanlon said the secret to success has been staying true to Capricorn Mutual’s core purpose: being a Mutual that specialises in motor trades and provides a protection product tailored to the auto industry.

“When our Members start or expand their businesses or purchase often very expensive equipment, we understand that these are huge moments in their lives, and by providing protection products like ours, we like to think we give them the confidence to make these decisions and still sleep easy at night,” he said. “Then, if things do go wrong and our Member needs to make a claim, we understand it’s critical that Members can get their business up and running as quickly as possible, as this is often their only source of income. We really tailor our claims processes around this.”

Rod said what sets Capricorn Mutual apart from its competitors is that, as a Mutual, we don’t have the same pressures to make huge margins like the listed insurance companies and we also have the ability to return excess funds back to Members through our Member rebate.

“Over the last three years, we returned more than $10 million to Members, thanks to our strong results and excess capital." he said.

The mutual difference is also apparent in the way Capricorn Mutual responds to incidents and to claims. Rod said that had never been clearer than when widespread flooding devastated communities across the Australian East Coast in 2022^.

“We had a huge number of Members impacted in that event and we paid out in excess of $42 million in claims,” he said. “It was the biggest event we’ve had in the Mutual’s history, and looking back I could not be prouder of the way we responded. In very difficult conditions we worked with our builders to rebuild factories, service stations and we replaced stock and equipment to get our Members roller doors open to customers as soon as possible — and alongside this we paid many of our impacted Members for loss of earnings because they couldn’t open their workshops and get back to business if they had purchased the Business Interruption Protection.”

“One of the other big things we approved were emergency payments, where within 24 to 48 hours of the event we had cash out in our Members’ bank accounts. We understand that just because they’ve had a flood, it doesn’t mean that the bills stop.”

Rod said Capricorn Mutual’s Risk Account Managers—the team who are out on the road every day, meeting Members, were another real point of difference with the Mutual’s competitors.

“I am always blown away by how well our Risk Account Managers really understand our Members’ businesses, and how they work with the Member to tailor a protection product that meets the individual requests of the Member,” he said. “We understand that all of our Members’ businesses are different, so we don’t sell something off the shelf that is a one size fits all. We work with the Member to build a product until they are satisfied it meets their needs, so they’re not paying for unnecessary products and so they can feel comfortable they’ve got the right protection in place for their situation.”

Contact your local Risk Account Manager for more information, or simply call 1800 007 022 (AU) | 0800 555 303 (NZ) or email info@capricornrisk.com for assistance.

In Australia: *Flood protection offered by Capricorn Mutual Ltd is subject to availability and may change based on risk assessment. Members are advised to review their protection documents, as the availability of flood protection is not guaranteed and may be subject to Capricorn Mutual Ltd's discretion and risk appetite. This disclaimer does not alter the terms and conditions of Capricorn Mutual Ltd’s protection. Not all general insurance providers offer flood protection.

1Products sold through Capricorn Risk Services Pty Ltd (ABN 91 111 632 789) are: (i) discretionary risk protection products issued by Capricorn Mutual Ltd; and (ii) general insurance products issued by a range of insurers and brokered through Capricorn Insurance Services Pty Ltd. Before deciding to acquire any product, you should consider the Product Disclosure Statement available from Capricorn Risk Services Pty Ltd to see if the product is appropriate for you. Capricorn Risk Services Pty Ltd is a Corporate Authorised Representative (No. 460893) of Capricorn Mutual Ltd (AFSL 230038) and Capricorn Insurance Services Pty Ltd (AFSL 435197). For its protection, Capricorn Mutual Ltd has published a Target Market Determination which is available at capricorn.coop/about/capricorn-mutual. Capricorn Insurance Services subscribes to National Insurance Brokers Association of Australia's (NIBA) Insurance Brokers Code of Practice, available at cap.coop/NIBA.

In New Zealand: *Flood protection offered by Capricorn Mutual Ltd is subject to availability and may change based on risk assessment. Members are advised to review their protection documents, as the availability of flood protection is not guaranteed and may be subject to Capricorn Mutual Ltd's discretion and risk appetite. This disclaimer does not alter the terms and conditions of Capricorn Mutual Ltd’s protection. Not all general insurance providers offer flood protection.

1Products sold through Capricorn Risk Services Pty Ltd include discretionary risk protection and general insurance products. Discretionary risk protection is issued out of Australia by Capricorn Mutual Ltd. Before deciding to acquire discretionary risk protection, you should consider the Product Disclosure Statement to see if it is appropriate for you. This can be obtained from Capricorn Risk Services by phoning 0800 555 303, emailing info@capricornrisk.com or checking the website capricorn.coop/risk. General insurance products are issued by a range of insurers and are available through Capricorn Risk Services Pty Ltd as a member broker of PSC Connect NZ Limited. Capricorn Risk Services is a registered financial services provider (390466) and a corporate Authorised Representative (No. 460893) of Capricorn Mutual Ltd (AFSL 230038). Capricorn Mutual Ltd has published a Target Market Determination for its protection, which is available at capricorn.coop/about/capricorn-mutual.