FINANCIER Sir Mark Weinberg will this week launch an insurance venture that aims to help small and medium-sized businesses slash their premiums by up to 40%.

Synergy Microcaptive is adapting the concept of the captive insurer, where large companies can slash their costs by setting up their own insurance company.

Under the captive system, a company takes out reinsurance to cover large claims but agrees to pay small claims.

Under the Synergy plan, 30%-40% of the insurance premium is paid into an account paying interest and will be used to cover small losses. The remaining premium pays for large claims.

If a business has limited or no small insurance claims it is repaid the money in the account, pocketing a saving.

Synergy is aiming to offer a single policy covering a range of areas from business interruption, motor and liability insurance.

Weinberg is understood to have invested well over £1m and will have an undisclosed equity stake in the company.

Other investors include George Magan, the veteran corporate financier, while fund manager Invesco Perpetual has taken a large stake. The business is thought to be valued at about £60m.

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