Issue - meetings

As per item 11.

The Cabinet noted the exempt information and resolutions as per minute 733.

Report of the Director of Finance. To be introduced by the Cabinet Member for Finance and Transformation.

To seek approval to award the contract for insurance arrangements to successful tenderer(s) for the following: Property, Combined Liability, and Terrorism.

The Cabinet Member for Finance and Transformation introduced the report which sought approval to award the contract for insurance arrangements to successful tenderer(s) for the following: Property, Combined Liability, and Terrorism.

Following consideration of the exempt information, it was

RESOLVED

In accordance with Contract Standing Order (CSO) 9.07.1(d), to approve the award of the contracts for the provision of the Insurance Services via the Insurance London Consortium (ILC), effective from 1 April 2022, for a period of five years with a break clause at the end of year three and year four to the following providers: Property Insurance Services (Lot 1) to Insurer 1 (identified in Appendix A to the report), Terrorism Insurance Services (Lot 2) to Insurer 1 (identified in Appendix A to the report), and Liability Insurance Services (Lot 3) to Insurer 3 (identified in Appendix A to the report).

Reasons for decision

The current insurance contracts commenced on 1 April 2017 and were based on a three year agreement with an option to extend by a further two years. The extension period will end on 31 March 2022. It is necessary to ensure that the new contracts are in place from 1 April 2022, to avoid any gap in insurance cover for the Council.

Alternative options considered

Purchasing stand-alone cover for the Council, using agreed procurement processes. This was not considered appropriate because:

·         Haringey Council’s membership of the ILC has enabled it to benefit from significant economies of scale in procuring policies for a number of local authorities; these economies of scale would not be available if the Council were to opt for a single authority procurement route.

·         Membership of the ILC has also allowed the Council to share best practice on insurance and risk management practices, which would not be available on a stand-alone basis; and

·         The insurance market for local authority risks has historically had a limited number of competitors. Procuring through the ILC has previously increased the number of providers willing to respond and resulted in lower premiums.