Decision Maker: Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
The Cabinet Member for Finance, Corporate and Traded Services to agree the award of a new contract for Kent County Council’s insurance arrangements to the successful provider identified through a procurement exercise for the period of 3-5 years, with the possible option to extend for a further 1-2 years.
Reason for the decision
The current insurance programme was due to be tendered during 2020 but as a result of the impact of Covid-19 and the volatility in the market, a decision was taken to agree one-year policy extensions. The tender process re-commenced in 2021 and new arrangements are due to be in place for 1st January 2022.
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 main insurance programme is currently held with Zurich Municipal under a 5-year Long Term Agreement. The agreement requires Zurich Municipal to provide cover by way of casualty (Public Liability & Employer’s Liability), motor and property policies.
Kent County Council has three options, when the arrangement with Zurich Municipal ends on 31st December 2021 –
1. To seek a further 12-month extension to the current programme.
2. To do nothing and self-insure without additional insurance cover.
3. To undertake a tender exercise to procure a new insurance programme
It is recommended the Council proceeds with a tender exercise to procure a new insurance programme for the next 3-5 years. Whilst a further extension might be available, the proposed terms are currently unknown, and it is likely that prices would be increased in the absence of competition.
Proceeding without insurance cover is not recommended as the Council would risk significant claims spend – particularly if a total property loss was to be suffered or a catastrophic personal injury claim was to be received.
How the proposed decision meets the objectives of ‘Setting the Course’: Kent County Council’s Interim Strategic Statement 2021-2022’
The proposed decision responds to the financial challenge articulated in ‘Setting the Course’ as the insurance tender will seek to secure value for money.
As Deputy Leader and Cabinet Member for Finance, Corporate & Traded Services I agree to:
Publication date: 27/10/2021
Date of decision: 27/10/2021
Effective from: 04/11/2021