NOTTINGHAMSHIRE County Council has secured a new deal on its insurance policies which could save taxpayers £650,000 over the next five years but still provide the Council with better cover.
The new agreements come into effect on 1st May and will last for three years, with the option to extend them for a further two years. The policies cover areas such as liabilities, motor and property.
The better deals have been secured at a time when insurance companies are generally quoting higher premiums.
Using a one council, one team approach, officers from across the authority have been working on the tender since last summer.
The complex tendering process saw six major companies bidding to provide cover for all or individual parts of the Council’s insurance portfolio.
Evaluation of the tenders was extremely complicated, with each proposal being scored according to cost and the level of cover. The successful bids were awarded to the best package, based on the ‘total cost of risk’.
Of the seven policy lots available, four have been awarded to Zurich Municipal, one to Allianz, one to Ace and one to Chubb.
Under the new agreements, the ‘total cost of risk’ will reduce by an estimated £130,000 per year, potentially saving up to £650,000 over the maximum life of the contract.
Paul Simpson, service director for finance and procurement, said: “With reducing income and increasing costs because of greater demand for some of our services, it is vital that the Council reduces all other costs wherever it is practical so that we have as much money available as possible for frontline services.
“The council has been scrutinising all of its procurement arrangements to try and secure savings, without compromising quality. The new insurance tender is another good example of where we have managed to drive down costs for better cover.
“By working closely with colleagues across the authority, we’ve been able to determine the most suitable insurance arrangements for each area and make sizeable savings.”
A report providing information on the new insurance tender will be presented to the finance and property committee on Monday. The report is available to download now from the council’s website, www.nottinghamshire.gov.uk