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South East Alarm Conference 2004

Discover key areas and tips for successful insurance tendering in the public sector. Learn about the importance of timing, procedure types, cover reviews, required information, options, evaluation, and more.

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South East Alarm Conference 2004

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  1. South East Alarm Conference 2004 Insurance Tendering Pam Savill – JLT Public Sector Risks

  2. Agenda • Introduction • Making the Most of the Tendering Process • Timetable • Type of Procedure to Use • Review of Cover • Information Required • Options • Evaluation

  3. Introduction • Jardine Lloyd Thompson Public Sector Risks • Pam Savill - Account Executive

  4. Making the most of the Tendering Process • Highlight the key areas for consideration • Important to know what you are trying to achieve • Reasons for tendering • Remember …. The tender document is all that the Insurers see of you. It needs to show the Council in the best possible light and provide sufficient information to allow the Underwriters to consider the risk and put forward the best possible terms.

  5. Timetable • It takes longer than you think! • For 1st April renewals you should have started already • Having a timetable will help to make sure you don’t run out of time • Allow ‘slippage’ time • Work backwards • Example

  6. Timetable • Renewal 1st April 2005 • Absolute deadline for making a decision – 31st March 2005. Ideally you would prefer not to be making decisions this late in the day! • Remember Easter – 25-28 March 2005

  7. Timetable • Do you need Committee Approval? • Dates of Committee Meetings • If Committee Meeting is 18th March – how long before do you need to submit report? • Say one week – 11th March • Whether you are doing evaluation yourself or a broker is doing this, allow 2 weeks – 25th February • Usually allow a minimum of three weeks for Insurers to quote, but at this busy time of year, allow four if you can – 28th January

  8. Timetable • Contract Notice – if Negotiated Procedure used, 37 days – 23 December • PIN – if PIN required, should allow 52 days before publication of Contract Notice – 2 November • So your timetable will look something like this:-

  9. Timetable • 2 November 2004 – Issue PIN • 23 December 2004 – Issue Contract Notice • 28 January 2005 – Issue Tender • 25 February 2005 – Tenders Returned • 11 March 2005 – Report to Cabinet • 18 March 2005 – Cabinet Meeting

  10. Timetable • These are the ‘key’ dates • In addition, you have to consider the following:- • Cover Reviews • Gathering of Information required for the Tender • These need to be completed before you can issue the tender document

  11. Type of Procedure • OJEC Changing in 2006 • For time being have a choice of Restricted, Open or Negotiated Procedures

  12. Review of Cover • Ideal Time to review insurance cover • Look at what is covered and why • Look at excess levels • Look at aggregate levels • Look at claims handling arrangements

  13. Options • Don’t be tempted to get the Insurers to do your job for you • You should have thought about different options at the cover review stage • If you ask for large numbers of options, Insurers will be put off quoting…Remember, Insurers will receive a number of tenders and you want yours to be at the top of the pile rather than the bottom.

  14. Options • Have well considered options. • No more than 2 or 3 options for each class of business • The more options you have the more difficult the tender evaluation process will be

  15. Information Required • All the usual renewal information and more …….. • Claims experiences and Liability Triangulations for at least the last 5 years from the holding Insurer (and run-off details from previous Insurers if necessary) – this can take some time to come through so make sure you ask for it in good time • Ask Insurers to carry out a claims review early so that experience shows the Council in the best possible light • If you have outsourced functions e.g. Highways, it can take some time to manually split the claims experience

  16. Information Required • Wages and salaries (and employee numbers) split between the different categories • Wageroll figures and employee numbers for previousyears Risk Management Activity • CPA Scores • Functions of the Council • Details of functions that have been outsourced e.g.Leisure, Housing, Refuse etc

  17. Information Required • In house claims handling – if you do this, Insurers will require details of the claims handled split by policy year, paid, outstanding, total. • Full property lists including addresses and postcodes • Details of large losses • Vehicle Numbers and Fleet Lists • General information about the Council and its environs

  18. Evaluation • Allow plenty of time for this • Although you ask for specific cover, excesses etc each Insurer will quote for what they want to provide • There will inevitably be differences on the major classes • Need time for clarification and to seek alternatives where required

  19. Conclusion • Need not be stressful if well planned and if you have sufficient time • Remember you will be stuck with your decision for at least 3, possibly 5 years so it is important to get it right

  20. What we have covered • Making the Most of the Tendering Process • Timetable • Type of Procedure to Use • Review of Cover • Information Required • Options • Evaluation

  21. Questions

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