Decision details

Insurance contract extension

Decision Maker: Head of Resources

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Purpose:

The Insurance contract with Zurich Municipal and Risk Management Partners (as well as Arthur J Gallagher) has now run for three years. Included in the tender document was the option to extend the contract for an additional two years.
The Council’s brokers have advised that RMP will be holding their rates and claims experience does not show a significant deterioration. Therefore any increase should be limited to any changes in sums insured. Zurich Municipal have also given similar advice.

Decision:

To extend the contract with Zurich Municipal and Risk Management Partners (as well as Arthur J Gallagher) for 2 years to 31st March 2022.

Alternative options considered:

Option 1 - To put the contract to full tender. Unlikely to generate a financial advantage for the Council. Current rates are good and past experience has proven costly in terms of both economics and officer time.
Option 2 - To extend the contract for 2 years to 31 March 2022. This is the preferred option due to there being an unlikely financial saving. Contracts are normally taken on a 3 + 2 basis and there is the intention to go to full tender in 18 months thereby putting in place a new contract for 1 April 2022. An extension offers a smoother process and is administratively beneficial for such a small time frame. Relations with both RMP and Zurich Municipal are extremely good and the service provided by them raises no concerns.

Publication date: 04/02/2020

Date of decision: 04/02/2020