Decision details

Approval to increase insurance contract value'

Decision Maker: Deputy Leader and Cabinet Member - Finance and Change

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

To seek approval to increase the aggregate value for the Council’s eleven insurance contracts

Decision:

In coming to this decision I have given due and full regard to the requirements of the public sector equality duty contained in section 149 of the Equality Act 2010 (“the Act”) by reference to the law itself.

 

Having fully considered all the available information, I have decided to reject the alternative options and take the recommended decision to:

 

Delegate authority to the Deputy Chief Executive and Executive Director of Corporate Resources to increase the estimated aggregate value of eleven insurance contracts that are the subject of a competitive procurement process that is currently underway.

 

The proposed estimated aggregate value of such contracts over the initial three year contract period should be increased from the estimated sum referred to in the Individual Cabinet Member decision dated 28th March 2023 (i.e. £1.26m pa) to a sum not exceeding £1.89m per annum. This potential increase is based on advice provided by the Council’s insurance broker who advised that insurance premiums across the insurance market have risen significantly (by up to 50%) since the Council last tendered for insurance services.

The final cost will not be known until the tenders have been received and evaluated.

 

This increase will be funded from surplus funds in the Insurance Fund Reserve for the initial three year contract period. Following the conclusion of the procurement process (when actual costs will be known) an assessment will be made as to whether the Reserve could fund the two year extension. If not then the insurance contracts will either need to be retendered or an MTFS bid submitted for the period post June 2027

 

For the reasons set out in the report.

 

Publication date: 09/05/2024

Date of decision: 09/05/2024

Effective from: 17/05/2024

Accompanying Documents: