Decision details

That the Executive Cabinet agrees that Risk Management Partners (RMP), Zurich Municipal (ZM) and ACE European Group Limited be appointed to provide insurance cover for the respective classes of insurance noted in the report.

At the June meeting of the Executive Cabinet Members approved a joint procurement exercise, in conjunction with South Ribble Borough Council, for the renewal of the current insurance covers in place at both Councils under existing Long Term Agreements (LTAs) that were due to expire on 31/12/2011.

Members also approved the contract award procedure and tender evaluation criteria and agreed that South Ribble Borough Council would act as the lead body for the joint procurement and conduct the exercise in compliance with its Contract Procedure Rules and Procurement Guidance.

The joint exercise had now been undertaken and a detailed Tender Evaluation Report had been provided by the Councils’ common insurance brokers. 

Decision made

To agree that Risk Management Partners (RMP), Zurich Municipal (ZM) and ACE European Group Limited be appointed to provide insurance cover for the respective classes of insurance noted in the report. 

Reason for decision

The following objectives have been achieved by the joint tender exercise:

·               Obtaining volume discounts from insurers by providing them with a larger overall offer. 

·               Sharing procurement costs by arranging one tender exercise rather than two. 

·               Rationalising the current insurance portfolios thereby providing ongoing administrative efficiencies.

Alternative option(s) considered and rejected

Prior to undertaking the joint procurement exercise some research into alternatives to the traditional tender approach were undertaken, for example the possibility of joining some form of consortium.

During the appointment process for the insurance brokers to both Councils the opportunity was taken to question all 3 candidates on their views as to the alternatives on offer.  All were quite dismissive about those alternatives, including consortia due to their fledgling nature and also that procurement savings from this route would probably be modest.  The consensus was to arrange a joint tender for new LTA's commencing 1/1/2012.