Insurance Policies Renewal (Extension of Existing Long Term Agreements)
Report of the Temporary Head of Shared Assurance Services attached.
Decision:
RESOLVED (Unanimously):
1. Cabinet approves the recommendations in the report.
Minutes:
The Cabinet Member (Finance, Property and Assets), Councillor Matthew Tomlinson presented a confidential report of the temporary Head of Shared Assurance Services that informed of the extension of the Council’s Long Term Agreements with its existing insurers for a further two years.
It was proposed by Councillor Matthew Tomlinson, seconded by Councillor Paul Foster, and
Decision made (Unanimously):
1. Cabinet approves the recommendations in the report.
Reason(s) for the decision:
It is essential that the Council has a comprehensive portfolio of insurance covers in place to manage risks that is faces from delivery of its operational activities and services to the local community. It is also imperative that effective insurance cover is maintained continuously and that revised arrangements are in place with effect from 1 January 2020.
The terms on offer represent sound value for money as they provide a reduction in the cost of the overall insurance premiums for the next two years, while maintaining existing levels of cover and the effective working relationships developed between the Council, the Broker and Insurers. In addition it will ensure continuity of the existing service and provide an opportunity to assess the performance and suitability of the other market options in a more considered way.
This is the course of action recommended by AON following their assessment of the current state of the general insurance market and consideration of the options for Insurance renewal.
In view of the resource implications and time constraints involved in undertaking a full tender procurement exercise at the present time, and following consideration of the alternative mechanisms available, it is considered to be the most appropriate course of action.
Alternative Options Considered and Rejected:
The undertaking of a full OJEU procurement exercise by means of an in house open tender would be demanding to complete within the timescale required.
Use of the Crown Commercial Insurance Services II Framework Agreement (RM 3731) – The existing Framework and arrangements have been subject to significant change and recent changes untested in the market.
The use of the Local Government Association Insurance Mutual has only recently been established and is untested in the market.