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 31st 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 31st 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 31st December 2026, -
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.
Decision type: Key
Decision status: For Determination
Notice of proposed decision first published: 09/02/2026
Anticipated restriction: Part exempt -
Decision due: Not before 11th Mar 2026 by Deputy Leader of the Council
Reason: To allow 28 day notice period required under Executive Decision regulations
Lead member: Deputy Leader of the Council
Lead director: Cath Head
Department: Strategic & Corporate Services
Contact: Lee Manser, Insurance Manager Email: lee.manser@kent.gov.uk.
Consultees
The proposed decision will be considered at the Policy & Resources Cabinet Committee to be held on 11 March 2026.
Financial implications: The total premium cost for 2026 is approximately £6m. The 2-year extension value is therefore approximately £12m, but with the benefit of discounted premiums. This saving is ringfenced to the insurance fund and will not impact the corporate position. The premium costs will not impact the MTFP as these are funded from the insurance fund and are already accounted for.
Legal implications: The Council proposes to extend its current insurance arrangements for an additional two years in line with PCR 2015, regulation 72. Regulation 72 sets out that a contract may be amended due to unforeseen circumstances by no more than 50% of the original value. Local Government Reorganisation could not have been foreseen at the time of the Council agreeing its current 5-year agreement on 1st January 2022. The current agreement has a contract value of approximately £25m and therefore the cost of the extension will meet the 50% requirement. Advice has been sought from KCC’s Procurement and Legal teams.
Equalities implications: Equalities implications: - An Equalities Impact Assessment has been carried out and no adverse impacts have been identified. Data Protection implications: - Given the nature of the proposed decision, there are not considered to be any data protection implications.