Decision details

The competitive procedure shows a much lower increase in premiums than was expected from market engagement and current market conditions.
The tender was split into 6 lots to encourage competition and supplier engagement. Listed below
LOT 1 Property
• Material Damage. All Risks
• Business Interruption
• Contract Works
• Computers
• Money
LOT 2 Combined Liability
• Employers Liability
• Public and Products Liability
• Libel & Slander
• Officials Indemnity
LOT 3 Crime/ Fidelity Guarantee

LOT 4 Motor including Airside Liability

LOT 5 Personal Accident and Business Travel

LOT 6 Engineering
• Engineering Insurance
• Engineering Inspection

6 companies submitted tender responses to one or more of the lots and were evaluated and moderated against the following criteria;

45% Quality
5% Social Value (an industry that historically doesn’t engage in offering strong Social Value to contracts although have a focus on SV for their own organisations. The winning bidder did score well on their social value offering to the authority.
50% Price

On this occasion one supplier won all lots. Zurich Municipal

The contract value is £445,212 per annum.

Recommendation

To approve award of the contract to Zurich at a cost of £445,212 pa years (indicative £2,226,060 for 5 years if optional 2 year extension is taken). Noting that the premiums are not fixed for contract duration and will be determined by any increase to property sums insured, increases to wages/salaries, FTE changes to fleet vehicles and any increase in claims costs and frequency.

Following an open competitive procurement exercise. Insurance services re tender has been concluded, to award a contract for 3 years ( + 1 x 24 month permissible extension) The contract will start 1st June 2024 or as soon as is practicable after contract signature.