Decision details

Proposed decision –The Deputy Leader of Kent County Council to agree a 2-year extension for the Council’s existing insurance arrangements. 

Reason for the decision

-      Kent County Council’s main insurance programme is held under a 5-year Long Term Agreement.  This agreement is due to end on 31^st December 2026 and a new programme is due to be tendered for 2027 onwards.  Due to the impending changes arising from Local Government Reorganisation (LGR), it is anticipated that a tender would not attract competitive prices and a 2-year extension should be sought.  This extension would not alter the nature of the contract and would provide the Council with continued insurance cover through to 31^st December 2028 and therefore past the anticipated LGR implementation date (April 2028). 

Background – Provide brief additional context

-      Insurance cover is required to protect the Council’s financial position in respect of losses it may suffer when undertaking its business. Kent County Council’s current 5-year Long Term Agreement is shared across multiple insurers.  The main policies are currently held with Risk Management Partners (RMP).  The agreement requires RMP to provide the Council’s insurance programme via insurers within their portfolio.  

Options (other options considered but discarded)

-      Kent County Council has two options to ensure insurance cover continues after 31^st December 2026, -

1. To undertake a full tender exercise to procure a new insurance programme
2. To agree a 2-year extension to provide cover through to 31^st December 2028

A 2-year extension is recommended under PCR 2015 regulation 72. Whilst it would be possible to undertake a full tender exercise, it is anticipated that insurers would offer higher premiums or even choose not to bid, due to the likely short timeframe of the arrangement.

How the proposed decision supports the Council’s Strategic Statement

-      The proposed decision responds to the Council’s financial outlook, as the extension will produce savings on the current premium and thus secure value for money.

As Deputy Leader of Kent County Council,  I agree to:

(a)     Extend the Council’s current insurance arrangements for a further two years, through to 31st December 2028.

(b)     Delegate authority to the Corporate Director of Finance, in consultation with the Deputy Leader of Kent County Council to, take relevant actions, including but not limited to negotiating, entering into and finalising the terms of relevant contracts, contract variations or other legal agreements, as required, to implement the decision.