Decision details

Proposed decision

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 1^st January 2022. 

Background

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.

Options

Kent County Council has three options, when the arrangement with Zurich Municipal ends on 31^st 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:

• Confirm the policy position and KCC insurance requirements which make up the KCC Insurance Programme.

• The undertaking of the necessary procurement, via an insurance broker, of the relevant Insurance Programme contracts.

• Award the contracts to the successful bidders, as identified via the procurement process.

• Delegate authority to the Corporate Director, Finance to, in consultation with me as the Cabinet Member for Finance, Corporate and Traded Services, to consider and approve any extensions of the awarded contracts provided for as part of the original contract award and related arrangements.

• Delegate authority to the Corporate Director, Finance, in consultation with me as the Cabinet Member for Finance, Corporate and Traded Services, to take the necessary actions, including but not limited to, entering into necessary contracts and other legal agreements, as required to implement this decision