Issue - meetings

To gain Executive approval to enter into an insurance collaboration with London Borough of Sutton (LBS) including five Surrey Districts and Boroughs to manage insurance administration, jointly procure insurance and pool the insurance policies excess (deductibles). Pooled excess reduces the external policy premiums that would otherwise not be practicably possible for a single council without taking on excessive financial risk. This proposal will secure a significant cost saving through economies of scale, increased administrative capacity, expertise and improved business continuity without impacting on the council’s overall insured risk exposure.

Recommendation

It is recommended that the Executive approve the collaborative agreement to join the integrated insurance service led by LBS.

RESOLVED to approve the collaborative agreement to join the integrated insurance service led by London Borough of Sutton.

Reason: The key objectives for joining the collaboration are to reduce insurance costs, increase policy limits and to increase insurance administration and management capacity to mitigate the council’s insurance administrative dependency on an experienced and difficult to replace part time officer.

[VALUE FOR MONEY OVERVIEW & SCRUTINY COMMITTEE]

89.1    Cllr Merryweather introduced the proposal for Waverley to enter into an insurance collaboration led by the London Borough of Sutton (LBS), including five Surrey Districts and Boroughs, to manage insurance administration, jointly procure insurance and pool the insurance policies excess (deductibles). This proposal would secure a significant cost saving through economies of scale, increased administrative capacity, expertise, and improved business continuity without impacting on the council’s overall insured risk exposure.

89.2    Cllr Joan Heagin expressed her reservations about the proposed arrangement, but recognised that there were also benefits for the council, and she urged the council to be an active partner in the collaboration to ensure that benefits and risks were fully understood. Members noted that three other Surrey districts that had been in the arrangement for some time had provided positive feedback on their experience.

89.3    The Executive RESOLVED to approve the collaborative agreement to join the integrated insurance service led by London Borough of Sutton.