Issue - meetings

Note – Essential Reference Paper B is enclosed for Members only as it contains exempt information as defined in paragraph 3 of Part I of Schedule 12A to the Local Government Act 1972.  In considering these matters, if necessary, the meeting may exclude the press and public in accordance with Agenda Item 21.

That (A) the Council’s insurance contracts should be extended for up to two years; and

(B)     ongoing participation as a Founding Member of the Local Government Association Mutual is maintained as recommended by Performance, Audit and Governance Scrutiny Committee.

The Executive Member for Finance and Support Services submitted a report regarding future insurance arrangements as the Council’s Long Term Agreement ends in 2019.  He detailed the options available and referred to the consideration by the Performance, Audit and Governance Scrutiny Committee on 24 July 2018.  The Committee had recommended that the Council extend existing contracts for up to two years with a report submitted in 2019 providing updates on the options available then.  The Committee also recommended that the Council remain a Founding Member of the LGA Mutual and requested that next year’s report included an update on that offering.

The Executive Member thanked Councillors G Cutting and B Deering for their contributions on the options appraisal.  Councillor B Deering expressed his support for the recommended approach.

Councillor G Williamson moved, and Councillor E Buckmaster seconded, a motion that the recommendations now detailed, be approved.  After being put to the meeting, and a vote taken, the motion was declared CARRIED.

 The Executive approved the recommendations now detailed.

RESOLVED - that (A) the Council’s insurance contracts should be extended for up to two years; and

(B)       ongoing participation as a Founding Member of the Local Government Association Mutual is maintained as recommended by Performance, Audit and Governance Scrutiny Committee.

Note - Essential Reference Paper B is enclosed for Members only as it contains exempt information as defined in Paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972.  In considering these matters, if necessary, the meeting may exclude the press and public as detailed at item 15.

The Executive Member for Finance and Support Services submitted a report seeking views on the Council’s future insurance arrangements as the Council’s long term agreement ended in 2019. 

The Head of Strategic Finance and Property provided a summary of the report and drew Members’ attention to the Essential Reference Paper “B” containing exempt information which set out three options available to the Council and the risks and benefits of each option.  The Insurance and Business Risk Advisor provided an update in relation to the Council’s relationship with the Local Government Association Mutual which was in its early development stages.

Councillor G Cutting summarised his involvement in the process explaining that he had attended meetings at the LGA which was moving towards an operational board and engaging professional consultants.  He explained that at the present time, there were a number of unknowns and issues to resolve which could impact on the premiums each Council would have to pay. 

Councillor Cutting explained that there was a great deal of encouragement to commit to becoming a founder Member but that for the moment, the Council should take a prudent approach over the next couple of years, and until the unknowns had been resolved.  He suggested that the Council could present its “book” for soft market testing on its portfolio but that this could impact negatively on the LGA Mutual and any competitive rate they might offer in the future.

Councillor J Wyllie stated that he was happy to support the extension of the contract for a maximum of two years and while Members sought further information regarding the progress of the LGA Mutual.  Councillor L Radford supported this suggestion.

The Insurance and Business Risk Advisor summarised some of the Council’s key insurance requirements which was split between eight insurance companies.  Councillor P Boylan suggested that the Council could increase the excesses to lower the premium rates.  The Insurance and Business Risk Advisor agreed that this was a possibility and that the Council was doing more self-funding and that an actuarial review will be commissioned when appropriate to help determine the optimum balance between insured and retained risk.  He stated that he had had a number of meetings with the Head of Strategic Finance and Property on the options in going forward.

Councillor G Cutting explained that the Council could be declaring its intention to establish itself as a founding Member by submitting its insurance “book”.  The Head of Strategic Finance and Property suggested that the Council should continue to attend meetings and correspond with the Mutual for the time being.  Councillor S Cousins suggested that the Council should stick to the status quo.

The Committee Chairman commented that given Members’ views and the on the advice submitted, the Council should take a prudent approach regarding its future insurance arrangements. 

It was moved by Councillor S Cousins and seconded by Councillor P Boylan that

·        the Council’s insurance contacts be extended for a maximum of two years, and

·        Officers submit a review in one year  ...  view the full minutes text for item 124