Issue - meetings

Report of the Head of Corporate Resources

The Cabinet considered the report of the Head of Corporate Resources in relation to the Council’s contract for insurance provision.

The report set out that the Council has a contract for insurance in place which was awarded in September 2013 on a three year term plus options to extend for two one year periods.  On 28 September 2017, the first of the extension periods expires.  The contract exceeds the OJEU threshold, having an annual cost of £949,643 in 2016/17. 

Decision Made: That:

(1)       the Council exercises the option to extend the current Insurance contract for one year until 28 September 2018; be approved;

(2)       the Council undertakes a procurement exercise for a new insurance contract, effective from 29 September 2018 onwards, using the Crown Commercial Services Framework Agreement for Insurance Services; be approved;

(3)       the Head of Corporate Resources be granted delegated authority in consultation with the Cabinet Member, Regulatory, Compliance and Corporate Services to award the contract to the highest scoring bidder from the procurement exercise to be undertaken in 2018/19; be approved; and

(4)       the Head of Regulation and Compliance be authorised to enter into a contract with the successful tenderer from the procurement exercise to be undertaken in 2018/19, be approved.

Reasons for the Decision:

Advice on the current local authority insurance market, received from the Council’s insurance brokers, AON, strongly suggests that the procurement of insurance in 2018/19, when the market has settled and there is an opportunity to gain maximised benefit from the increased competition from insurers. This is likely to enable the Council to secure a more advantageous position than a procurement in 2017/18 would offer. 

By extending the current contract, due to the current insurers’ understanding and familiarity with Sefton’s portfolio, premiums and cover are expected to be maintained at current levels.

Use of the Crown Commercial Services Framework Agreement for Insurance Services beyond September 2018 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:

Undertaking a procurement exercise for insurance during 2017/18 is not advantageous for the Council, as this would not enable the Council to maximise benefit from the increased competition generated by the entry of new providers into the local authority insurance market, and would not maximise the choice of potential insurers open to the Council, as these new entrants do not yet have a proven track record.