Decision details

The Cabinet considered the report of the Executive Director of Corporate Resources and Customer Services which sought approval for a procurement exercise to be undertaken for a new Insurance Contract, to ensure the continued provision of effective insurance and to secure the most advantageous position for the Council.

Decision Made: That

(1)      approval be given to a procurement exercise been undertaken for a new insurance contract, to be effective from 29 September 2023 onwards, using the YPO Dynamic Purchasing System Framework Agreement for Insurance Placement DPS - 978 to enable a new contract to be implemented for three years with two one-year extensions; and

(2)      the Executive Director of Corporate Resources and Customer

Services be authorised in consultation with the Cabinet Member, Regulatory, Compliance and Corporate Services to award the contract (and any subsequent extension) to the highest scoring bidder from the procurement exercise to be undertaken in 2023/2024.

Reasons for the Decision:

The Council should tender the insurance programme to ensure that the Council obtains value for money in accordance with the Contract Procurement Rules. Use of the YPO Dynamic Purchasing System Framework Agreement DPS – 978 for Insurance Placement beyond September 2023 also offers the opportunity to access a large number of pre-vetted insurers, including any new entrants to the market.

Alternative Options Considered and Rejected:

Renewing with the existing insurance programme insurers would be in breach of the Council’s Contract Procedure Rules and would open the Council to challenge.

Council could self-insure and not insure through third parties. All claims including catastrophic claims would need to be paid for by the Council which the current financial budget is not designed to respond to. Insurance is designed to provide catastrophic cover for low likelihood but high financial impact. There are therefore not viable.