Agenda item

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 and receive an update on the Council’s position as an uncommitted founding Member and that the Executive be advised that the recommendations as detailed be supported. 

After being put to the meeting and a vote taken, the recommendations now detailed,  were declared CARRIED.

RESOLVED - that  the Executive (A) be advised that: 

(A)        the Council’s insurance contracts be extended for a maximum of up to two years; and

 Officers submit a review in one year and an update on the Council’s position as an uncommitted founding Member of the LGA Mutual.