Purpose

This report seeks Cabinet approval to procure
insurance contracts to cover all the Council’s operations for
the next three years, with the option to extend for a further two
years. 
 
This procurement will enable the Council to
comply with relevant statutory obligations as well as demonstrate
responsible risk management practice.

Decision

For the reasons set out in this report and its
appendices, Cabinet RESOLVED to Agree to:
 
i) 
Approve the commencement of the procurement for municipal insurance
cover through the Yorkshire Purchasing Organisation’s (YPO)
Insurance Placement Dynamic Purchasing System (DPS) 01198 for a
contract with an initial term of 3 years, effective 1 April 2026,
with an option to extend for 2 years at the estimated value of
£2.7m per annum.
ii) 
Delegate to the Corporate Director of Resources in consultation
with the Cabinet Member for Finance and Resources, to award the
contracts arising from the tender process to the most advantageous
bidders for the various lots.
 
Alternatives
considered
 

a) 
Wholesale Self Insurance – This is clearly not a viable
option because there are insurance policies we are required to have
in place by law. Confining ourselves to the compulsory classes is
also not advisable, given that the unexpected can occur such as
matters arising from tragedies of Grenfell.

b) 
100% Risk Transfer – Potentially all insurance companies
writing local authority business will decline to offer cover on
this basis. The simple reason is that there is then no incentive on
the part of the Council to manage risk.

c) 
Reduction in General Property cover to Fire, Lightning, Explosion,
Earthquake (FLEE) – Whilst this will secure a reduction in
premium, it is too restrictive a level of cover. It is currently
mainly used by the market for unoccupied properties and may send
the wrong signal to underwriters. Also, this approach would not be
favourable to our education and housing portfolios.