Home

SW Councils Framework User Guide v5

Contents

1. Employment Defence Tax and VAT Criminal Prosecution Prop erty Disputes Contract Disputes Helpline OTHER 1 _ OTHER 2 1 2 3 4 5 Data Protection 6 7 8 9 57 LOT 7 ENGINEERING INSURANCE amp INSPECTIONS Lot 7 Engineering Insurance amp Inspections Engineering Insurance Please complete the section fully noting the current basis of cover Cover Item Cover Sum saad 1 Sudden amp Unforeseen Damage 2 Damage to Own Surrounding Property due to Explosion or Collapse Damage to Own Surrounding Property due to _ Fragmentation Breakdown _ OTHER 3 o Please note that you may or may not currently purchase all sections for example Breakdown Lot 7 Engineering Insurance amp Inspections Engineering Inpection There is nothing specific for completion within this section other than to note within the Additional Information box which Appendix the Engineering Schedules are included 58 LOT 8 MARINE INSURANCE Lot 8 Marine Insurance Small Craft This section will only apply for Boats and Small Craft where relevant to the individual Member The Situation is to highlight the location or locations please use additional rows where the items are kept The Items Insured details the sums involved Please use the Additional Information box to include a full schedule of Craft or to highlight where in the Appendix such information is retained Sit
2. premium rates A relationship manager will be appointed to each client and there are clearly set out performance standards that the insurer will deliver Service Delivery Tokio Marine have indicated that they are a broker only market and are not resourced to deal with policyholders direct This effectively means that they will only place cover via a broker agency and rely upon insurance brokers to collect premiums on their behalf provide credit control premium accounting and to perform a role in the policy issue process which is critical to their FSA authorisation and approved business processes Their application names Heath Lambert as their preferred broker but they have indicated they will work with other brokers who have a Terms of Business Agreement TOBA in place with them We are confident that this arrangement will extend to all of the brokers who operate specialist Public Sector Teams so this will not in any way be a restrictive or unacceptable practice for the Framework users Service Standards Discounts and Cover Tokio Marine have confirmed that they intend to respond to every request for a quotation unless any tender documents contains exposures or insured values which fall outside of the insurers reinsurance treaty protection Tokio Marine have offered to consider providing wider cover or cover enhancements to their standard wording on a risk by risk basis rather than offering to provide wider cover for all framework users W
3. The Invitation To Tender is the document that will be provided to Insurers to enable them to offer a quotation for any of the 9 Lots included within the Framework agreement The document has been established in conjunction with the Framework Providers to ensure that the data included meets their requirements however there will always be clarifications required by Framework Providers regarding individual Members insurance programmes The intention of this document is to provide Members with a format to provide details of their insurance programmes There are boxes to include Additional Information that should be used to identify any material differences where your Insurance Programme may require a more bespoke basis than the standard form Areas Requiring Completion You only need to complete the yellow boxes Should you wish to increase the size of the box simply keep typing or add another row to the table If you wish to add documents as Appendices simply note that this will be done and then add a further page to the Appendices and amend the Contents page to demonstrate this Covering Sheet STRICTLY PRIVATE amp CONFIDENTIAL Underwriting Presentation in Accordance with the South West Councils Insurance Framework Prepared by Contact Details Address Telephone Number Tender Response Date Tender Reference This is a fairly straight forward page for completion over typing of the Council
4. 499 999 7 5 500 000 10 In addition the insurer has offered an additional 5 maximum discount for authorities that have or use contractors who are accredited with 15014001 or equivalent industry recognised and audited Environmental Management Systems The insurer has indicated that their wording is already specific to local authorities and their contractors but are prepared to consider enhancements of cover on a case by case basis Liberty require premiums to be paid within 60 days of inception and no specific flexible payment options have been proposed Due to the nature of the insurance offered by Liberty the question of long term agreements is virtually irrelevant Their policies cover either ongoing activities in which case renewal is on an annual basis or their policies cover project risks in which case they tend to cover a three or four year period Again due to the specialist nature of insurance provided by Liberty the range of services they could offer to Framework users is very limited They have undertaken to pay up to 5 000 for the services of an environmental consultant from their specialist panel to provide specialist advice in the event that any individual Framework user places cover with them for a premium of 100 000 or more This is considered to be a valuable additional service on top of the discounts already offered RSA Engineering RSA Engineering is part of the RSA Group Plc Company Registration No 93792 and is
5. amp Service Standards 60 60 Best option received Loss recording system to be provided and management information available in real time Very high 36 standards of response and service described Offer to include quarterly loss trend reports with recommendations for improving management of risk Claims Handling Score 100 Total Score 172 Should you include any sub categories within each of your Award Criteria sections these must be identified to the Framework Tenderers There is a requirement for each authority using the Framework to inform all insurers quoting of the outcome of the mini competition and the intention to award contracts to the successful insurer s and to send rejection letters to unsuccessful insurers Letters must be sent by email to the insurers and a 10 day standstill period observed before confirming the award of the contract s Please note that the last day of the ten day standstill period must fall on a normal working day If letters are sent by post rather than email a 15 day standstill period must be observed before the contract can be awarded A list of insurer contacts is included in the Appendices to this Guide and the standard form of letters to be used for notifying the intention to award rejection and confirmation of award to the successful insurer s are provided as separate Word documents 37 8 Invitation To Tender Completion Guidelines
6. s details We have included a Tender Reference box for completion if required 38 Table of Contents We have linked this page to the individual Headings within the report Therefore should you amend the page numbering by the addition of additional information you simply need to right click on the table to get the following options Table of Contents Update Field Edit Field Toggle Field Codes Font Paragraph Bullets and Numbering and the Table of Contents will automatically update to the revised page numbering and headings 39 Introduction Please mark the Lots you wish to include within the Tender with an X General Details Simply add the details for your Authority Business Description You will locate the current Business Description on your current Policy Schedules This is an important element of the Invitation To Tender as this details to Insurers the activities that you undertake District Council for example may be sufficient as the Framework Providers understand the Public Sector and activities undertaken However if you undertake any activities that may be unique to you or only undertaken in a small number of Authorities these should be noted within this section to identify such to the Framework Providers Profile This box can be expanded as much as is required to meet your needs The intention is to provide the Framework Providers with details about your particular Autho
7. Item Description Daciarad Value Sum Insured Leasehold Shops Months Rental Income 1 2 3 Industrial Units 4 Months Rental Income 5 Other 2 6 Other 3 The remaining sections should be completed using the same guidance as given for General Properties Lot 1 Property Insurance Computers Once again the majority of the pages to completed are similar to previous sections The major difference is the Interest Sums Insured section ltem 1 should include servers printers and all computer equipment that would remain within the premises You may not currently purchase all covers Computer Negligent Breakdown in particular therefore please just mark such boxes as N A Interest Sums Insured Item Description Sum Insured 1 Computer and or Ancillary Equipment 2 Lap Top Computers 3 Other Portable Equipment 4 Reinstaternent of Data Damage to Computer Records 5 Months Increase Cost Of Working ICO 6 Computer Negligent Breakdown 7 Other 1 The remaining sections should be completed using the same guidance as given for General Properties 47 Lot 1 Property Insurance Other This is a further section for completion if you have any other Property Insurance that has not already been included An example of such may be Museum Contents Lot 1 Property Insurance Business Interruption You will need to provide details of your current Business Interruption cover Please
8. Partnership Insurance Framework service providers using a standard market presentation template The Framework will be accessible by eligible authorities directly or in conjunction with their appointed insurance brokers advisors Eligibility Authorities eligible for initial membership of the South West Improvement amp Efficiency Partnership are as follows North Dorset District Council West Devon Borough Council Stroud District Council Kennet District Council Mid Devon District Council Torridge District Council North Devon District Council South Hams District Council Teignbridge District Council East Devon District Council Taunton Deane Borough Council West Somerset District Council South Somerset District Council Cheltenham Borough Council Cotswold District Council Forest of Dean District Council Sedgemoor District Council West Dorset District Council Weymouth and Portland Purbeck District Council Dartmoor National Park Authority East Dorset District Council Tewkesbury Borough Council Gloucester City Council Christchurch Borough Council Exmoor National Park Authority The following contracting authorities which are members of the Advantage South West Procurement Club may access any framework or contract resulting from this notice Devon amp Cornwall Housing East Dorset Housing Association North Devon Homes Ocean Housing Penwith Housing Association Purbeck Housing Trust Synergy Housing Group Tarka Housi
9. V Aspen Insurance V V Ecclesiastical y Liberty Mutual y Tokio Marine y RSA Engineering V Ace Insurance V i In respect of Computer Insurance and Contract Works insurance only E gt In respect of Environmental Impairment Liability Insurance and Pollution cover as a stand alone policy Summary of Framework Insurers Tokio Marine Tokio Marine Europe Insurance Company is registered in the UK as a Limited Company Reg 989421 and is also registered for VAT Reg 577511815 FSA Registration number is 202574 Financial amp Economic Standing Tokio Marine have a current Standard amp Poors Rating of AA which is significantly in excess of the minimum of BBB rating required for Lot 1 Property insurance Tokio Marine Europe Insurance Ltd is part of the Tokio Marine Group with the ultimate parent Company being the Tokio Marine and Nichido Fire Insurance Co Ltd of Japan A reassuring aspect is that a parental guarantee is in place so that there is additional security offered by the whole group of companies Tokio Marine have indicated that they will provide the Framework service from their office in Birmingham They have further offices in London and Manchester which gives them a reasonable geographical presence if the Framework develops on a nationwide basis Technical Capability It is the intention of Tokio Marine to provide the claims handling service in house And claims handling costs are included within the insurers
10. Within the Appendices please include a full vehicle schedule detailing all vehicles the cover in force the Use and the excess unless it is the same for all vehicles in which case the summary above can be used 53 LOT 4 ACCIDENT amp HEALTH INSURANCE Lot 4 Accident amp Health Insurance Personal Accident Please complete the Schedule to detail the current cover in force Persons Insured Category Persons Insured l Operative Time Benefits i Benefit _ Category A Category B Category C Category D Death Loss of limb and or Loss of eye Total Loss of Hearing and or Loss of speech And or hearing in one ear Permanent Total Disablement Permanent Partial Disablement Permanent or total loss of use of a anarm hand or leg above the knee b aleg below the knee or foot c a shoulder or elbow d a hip knee ankle or wrist e athumb j any finger or big toe g any other toe Temporary Total Disablement Weekly benefit Period 104 weeks Salaries Highest Individual Salary Ooo The Highest Individual Salary is required to establish the risk to Insurers where you purchase cover on a Salary Multiple Should you have any additional Categories requiring cover or any Benefits that are omitted please provide details within the Additional Information box 54 Lot 4 Accident amp Health Insurance Travel You may not cur
11. applies on a Cross Class Basis Y N In addition you will need to identify the current basis of excess applying With Zurich Municipal your excess may be on a Per Property basis whereas with other Insurers it may be Per Event Beneath this data there is an option to request alternative quotes Data also has to be provided on the current excesses applying within the individual boxes per peril or on an All Risks basis 44 Lastly please include details of any Aggregate applying and whether this applies on a Cross Class basis The following page details the current Conditions and Extensions applying Please note Exclusions have not been included as we would not wish to encourage Insurers to limit cover unilaterally Conditions Extensions Please quote including ALL Conditions marked as Currently In Force and also for any marked as Additionally Required Condition Extension Limit Currently In Additionally Force Required Alterations Repairs Automatic Reinstatement of Sums Insured Capital Additions Clearing of Drains Gutters Sewers inc premises owned leased rented or utilised Contract Purchase Clause Designation Clause Deterioration of Stack External Landscaping Fire Extinguisher Expenses Inadvertent Omission to Insure Keys Replacement Locks Loss Of Metered Water Non Invalidation Clause Other Interests Clause Patterns Moulds Plans or Designs Personal Effects Members Employees Custome
12. for replacement of new private car and goods carrying vehicles Inclusion of Early Settlement Leased vehicle Guaranteed Asset Protection cover Inclusion of a profit share rebate clause 20 Engineering Computer e Computer hacking no exclusion or inner limits e Breakdown of non maintained computers up to maximum of 10 000 e Denial of access no hacking exclusion e Virus and similar mechanisms cover standard up to 100 000 Engineering Plant e Reinstatement basis for plant less than 12 months old provided marked and registered under the Construction Equipment Security and Registration scheme e Anti theft and security devices up to 25 000 e CPA Contract Lift Cover up to 25 000 e Immobilised Plant and Machinery up to 110 of the current market value We expect that some of these extensions are also offered by other insurers and this will form part of our evaluation of wordings However there are a number of potentially valuable extensions of cover included in this list together with a further list of extensions that Aviva will provide albeit in return for additional premium This demonstrates a high level of commitment and flexibility by the insurer Aviva have offered to provide a number of flexible payment options including a Prompt payment discount Low Claims Discount and a variation on this in the form of an Advanced Profit Rebate whereby the discount is allowed up front and the full premium collected in
13. individual insurer proposal is shown below for information The Beneficent amp General Insurance Company Option 1 Criteria Weighting Tender Score Comments Insurance Cover Price and Pricing Structure 40 32 Lowest premium quoted but some concern over proposals to index link premium deductibles and aggregate stop Have offered a three year LTA with option to extend for a further two years Quality Criteria 60 e Service Standards 10 Acceptable response but did not address all service standards required Response times to queries were the lowest of the insurers who quoted e Insurance Cover 30 30 Best option received Quoted to provide cover as defined in mini competition documents No significant exclusions or warranties Per event deductible quoted for weather perils e Range of Insurer Services 10 Are offering no services beyond provision of insurance cover and claims handling No risk control security surveys or risk management services included e Expertise 10 Not convinced that the insurer clearly understands the risk exposures and a number of subjectivities would need to be addressed if this option is accepted Insurance Score 72 Claims Handling Price amp Pricing Structure 40 40 Claims handling will be undertaken by the insurer and cost is included within the premium quoted Quality
14. insurer has also offered quarterly surgery meetings with SWIEP in order to review activity within the Framework With a team of 28 and a network of 46 offices to deliver services to individual Framework users the resources allocated appear to be very comprehensive Aviva have undertaken to provide the claims handling service in house with the exception of travel related claims which will be handled by Cega who are a leading provider of worldwide assistance to Travel insurance policyholders Travel insurance claims handling is best linked to a helpline service and overall this arrangement would generally be the preferred option for Framework users Aviva have confirmed that all claims handling costs are included within the insurers premium rates including the cost of the travel insurance claims handling by Cega The insurer has confirmed that their Risk Management Solutions organisation is accredited to ISO9000 although underwriting and claims units are driven by the FSA regulatory regime and their internal quality is also driven by industry best practice models Their underwriting teams are subject to self assessment by trading teams as well as central compliance auditing and external auditing by the FSA Service Delivery Aviva have indicated that they are a broker only market and are not resourced or prepared to deal with policyholders direct This effectively means that they will only place cover via a broker agency and rely upon in
15. make this clear to the Framework Tenderers Professional Indemnity Negligence policies are very specific to the works undertaken We would therefore recommend that you carefully review with your professional advisers the conditions and extensions required 60 Appendices Insurer Contact details 61 Insurer Contact Details 1 Tokio Marine Europe Insurance Ltd 150 Leadenhall Street London EC3V 4TE Contact Name David Batey Senior Underwriter Email Contact dbatey tokiomarine co uk Allianz Insurance Plc 57 Ladymead Guildford Surrey GU1 1DB Contact Name Mark Smith Account Development Manager Email Contact mark smith allianz co uk Ecclesiastical Insurance Beaufort House Brunswick Road Gloucester GL1 1JZ Contact Name Amanda Hone New Business Manager Email Contact Amanda hone ecclesiastical com Aspen Insurance UK Ltd 30 Fenchurch Street London EC3M 3BD Contact Name Clive Edwards Head of UK Commercial Email Contact clive edwards aspeninsurance co uk Travelers Insurance Company Ltd 61 63 London Road Redhill Surrey RH1 1NA Contact Name Jane Glyn Deputy Product Manager Email Contact jglyn travelers com Ace European Group Ltd Ace Building 100 Leadenhall Street London EC3A 3BP Contact Name Les Vincent Business Development Manager Contact Email les vincent acegroup com 62 10 11 Zurich Municipal Zurich House 2 Gladiator Way Farnborough H
16. number for Allianz Insurance Plc and subsidiary companies is 121849 Financial amp Economic Standing Allianz Insurance Ltd have a current Standard amp Poors Rating of AA which is significantly in excess of the minimum of BBB rating required for Lot 1 Property insurance and Lot 7 Engineering Insurance and Inspection services Allianz Engineering and Allianz Engineering Inspection Services are specialist trading units within Allianz Insurance Plc and provide specialist engineering insurance and engineering inspection services Allianz have indicated that they will provide the Framework service from their London office with support from their Head office in Liphook Hampshire although locally based and qualified engineers will provide the inspection service to individual authorities dependant upon the Council location They have further offices in Birmingham and Manchester which would give them a reasonable geographical presence if the Framework develops on a nationwide basis Technical Capability It is the intention of Allianz to provide the claims handling service in house via their specialist engineering team based in Liphook Claims handling costs are included within the insurers premium rates A nominated claims handler will be appointed to each client and full contact details together with out of hours contacts will be provided to each authority Allianz have described their commitment to comply with the regulatory framewo
17. of RMP that Gallagher Bassett will provide the claims handling service for Motor Liability and Property claims handling With Personal Accident and Fidelity Guarantee claims being provided by Chartis as the insurer Engineering claims will be handled by HSB All claims handling will be provided within the premiums charged with the exception of Liability claims where a separate and additional quote will be provided by Gallagher Bassett to each Framework user This is a complex arrangement but has been seen to work well for other local authorities and we do not see this as a significant problem However the Liability claims costs must be taken into account when evaluating the RMP quotations against those of other insurers 29 Claims rates quoted in the RMP application are shown in the table below Claims Type Rate per claim VAT Employers Liability 678 Public Liability TP Property Damage 117 Public Liability TP Injury 258 Officials Indemnity 678 Claims costs will depend on actual claims numbers submitted in respect of each insurance year and rates will be periodically reviewed so may represent a variable cost to the Framework users Service Delivery RMP have expressed a preference to place insurance via a broker agency and have confirmed that they work primarily with Heath Lambert Aon JLT Marsh Willis and Griffiths amp Armour amongst others in the public sector However RMP have also confirmed that they will provide
18. of which personal accident health and travel products are a particular strong brand This is a reflection of the focus that Ace have on UK public sector business and in particular is consistent with their application to quote only for risks under Lot 4 for the Framework Ace European Group Ltd is part of the Ace group of companies which are structured around geographical location and to an extent product expertise Ace have confirmed that the ultimate parent company is Ace Ltd and a parental company guarantee is available Ace have indicated that they will provide the underwriting service to the Framework from their office in Birmingham and their Glasgow office will provide the claims handling service They have further offices in Leeds Manchester Watford Reading Maidstone and Crawley which would give them a reasonable geographical presence if the Framework develops on a nationwide basis Technical Capability It is the intention of Ace to provide the claims handling service in house and this is would generally be the preferred option for Framework users Claims handling costs are included within the insurers premium rates and details of quality standards have been provided Service Delivery Ace have expressed a preference to deal via insurance brokers appointed by the individual local authorities but have confirmed that they will deal direct with Framework users if required to do so We are confident that Ace have agency agreements wit
19. of writing UK insurance business especially in specialist sectors such as transport and public sector This track record is specifically relevant for the insurance risks that Travelers have applied to write for the English District Councils Travelers Companies Inc is the ultimate parent company of Travelers Insurance Company Ltd Travelers Insurance Company Ltd is the international company the UK Ireland and Canada Travelers have indicated that they will provide the Framework service from their office in Redhill which is where their public sector team is based and there are significant advantages in having a consistent approach to an industry segment and underwriting risks and managing claims from one office They have further offices in London Manchester Leeds and Birmingham which will give them a good geographical presence if the Framework develops on a nationwide basis Travelers have a significant presence in the UK public sector market Technical Capability It is the intention of Travelers to provide the claims handling service in house via their own claims team Generally we expect this to be the preferred option for Framework users However Travelers have indicated that they do allow a flexible approach to claims handling and will consider claims handling by individual policyholders or by their preferred claims handlers if that is a requirement This shows that the insurer has a flexible approach and will work to accommodate the
20. policy dispute resolution an anti fraud proposition and claims cost mitigation Zurich commit to using electronic case management and commit to using rehabilitation services in order to speed recovery of injured parties thereby reducing claims costs Service Standards Discounts and Cover Zurich have confirmed that they intend to respond to every request for a quotation provided that the individual authority allows sufficient time and provides the required underwriting information to satisfy the underwriting process Zurich have pointed out that any offer to give volume discounts to all Framework users will equally reward poorly managed risks and well managed risks In fact the reward in terms of discount could be worth more to local authorities with poor risks as the starting premium is likely to be higher Their proposal is to offer each Framework user an audit against their Risk Management Standards and the achievement by individual authorities to achieve a good or best practice standard will be rewarded by a premium reduction ZM have not quantified this reduction but the thinking behind the proposal is sound and sets out to reward those authorities who actively manage their risks rather than those who do not Zurich have referred to a number of existing enhancements to their public sector wording and a number of other insurance enhancements that the company is looking to develop such as supply chain insurance and partnership insurance Zuric
21. quotations direct to Framework users and will allow direct dealing if required to do so This response attracts top marks as this should give maximum flexibility to Framework Users by either dealing direct with local authorities or via any of the recognised specialist public sector brokers in the marketplace RMP have provided an extensive list of clients including English District Councils who place cover with Chartis and HSB via this arrangement Service Standards Discounts and Cover RMP have noted and agreed to the requirement to provide quotations to all Framework users Chartis have also agreed on the proviso that their reinsurance arrangements will cover the risk and excepting situations where market conditions may change after entering into the agreement and where the company is no longer able to insurer certain risks HSB have indicated that they will always submit quotations wherever possible RMP have referred to discounts offered by Chartis and HSB in their separate responses Chartis have offered a 5 discount to all Framework users once the premium volume written under the Framework exceeds 2 000 000 and the overall Chartis book of business having a Gross Loss Ration of less than 50 HSB have stated that they would be willing to consider discounts but are unable to put forward details or a table of rates Gallagher Bassett have referred to the RMP response which is silent over any discount on claims fees Overall the Chartis offer
22. reference to in house training programmes for their specialist Public Sector teams and a continuous quality 16 review for measuring compliance with reserving philosophy and technical claims handling performance Service Delivery Zurich Municipal have indicated that they will only deal direct with all users of the Framework Zurich Municipal have a direct dealing service delivery model and will not place cover via broker agencies or take placing instructions from insurance brokers appointed by individual local authorities This is not a problem in that Zurich Municipal are resourced to operate in this manner There need not be any conflicts between a sole broker appointed by a local authority and Zurich Municipal as the insurer We are confident that this arrangement is workable for all of the brokers who operate specialist Public Sector Teams so this will not in any way be a restrictive or limiting practice for the Framework users Zurich Municipal writes a substantial market share of UK local authority business and their client list is very extensive The insurer has provided a robust response in terms of the process for providing quotations in response to all requests for cover clarification of queries and placement of cover direct with the insurer The method statements cover ongoing service and regular client contact cover amendments claims management and addressing risk management issues There is specific reference to claims defence
23. rely upon insurance brokers to collect premiums on their behalf provide credit control premium accounting and to perform a role in the policy issue process which is critical to their FSA authorisation and approved business processes Their application comments that their agency list is dynamic but confirms that they have agencies with all of the brokers who are active in the local authority marketplace and will consider any broker proposed by a Framework User to represent them We are confident that this arrangement will extend to all of the brokers who operate specialist Public Sector Teams so this will not in any way be a restrictive or unacceptable practice for the Framework users The insurer has provided a substantial list of public sector organisations for whom it has provided insurance cover under Lot 1 Property insurance and Lot 2 Liability insurance They have referred to specific involvement with a number of English District Councils in particular Service Standards Discounts and Cover Aspen have confirmed that they intend to respond to every request for a quotation but that they reserve the right to decline any risk outside of their risk tolerance regulatory framework or reinsurance treaty 12 The insurer has undertaken to meet the KPIs set out in the insurer tender document and have confirmed that they will allocate both an underwriter and reserve underwriter to each local authority in order to guarantee response times
24. remember that the Sum Insured must represent the total number of Months Interest Sums Insured Indemnity Item Description Period Sum Insured Gross Revenue Increased Cost of Working Gross Revenue Increased Cost of Working Combined Additional Increased Cost of Working Other 1 njej win Members will insure for their Business Interruption on different basis dependent upon their own requirements We would recommend that you do review these with a professional adviser to ensure they meet your current needs The remaining sections follow the format of the previous Lot 1 sections Lot 1 Property Insurance Works In Progress Again the format of this section largely follows the previous guidance provided You will need to provide details of the specific covers required Please note you may well not currently purchase all sections Sums Insured Sum Insured Estimate Item Description Limit Any One Contract Estimated Annual Value of Contracts Hired In Plant Limit Any One Item Hired In Plant Maximum Value Held at any one time Hired In Plant Annual Hiring Charges OTHER 1 One an Should you wish to include a section not currently Insured please note this in the Additional Information box rather than the Sums Insured box 48 Lot 1 Property Insurance All Risks This page should be completed fully unless you prefer to include a spreadsheet or table detailing your Al
25. request 2 Use Of Lots In order to facilitate the maximum competition the sections of insurance policy coverage have been broken down into 9 Lots LOT 1 PROPERTY INSURANCE LOT 2 LIABILITY INSURANCE LOT 3 MOTOR VEHICLE INSURANCE LOT 4 ACCIDENT amp HEALTH INSURANCE LOT 5 FINANCIAL LOSS INSURANCE LOT 6 LEGAL EXPENSES INSURANCE LOT 7 ENGINEERING INSURANCE amp INSPECTIONS LOT 8 MARINE INSURANCE LOT 9 PROFESSIONAL LIABILITY INSURANCE The Framework can be utilised for as many or as few Lots as the Member wishes to encompass We would recommend that you do attempt to tender for as many Lots at a single time as possible as one reason for the establishment of the Framework is reduce administration costs for both the Framework Members and the Framework Providers 3 Eligibility The Framework is intended to be utilised as Long Term Agreements expire or when they are broken by Insurers We do not encourage Long Term Agreements to be broken by Members in order to access the Framework 4 Framework Providers Framework Insurers have been agreed individually for each of the 9 Lots These are as follows Insurer Loti Lot2 Lot3 Lot4 Lot5 Lot6 Lot7 Lot8 Lot Zurich Municipal V V V V V V V V V Travelers V y y y V Allianz Engineering ae V Aviva Insurance UK Ltd y y y y y y y y y Risk Management Partners V V V V V V
26. that shown in the first three months it is envisaged that the framework will be re tendered in 2013 so that a new framework is ready for use in 2014 68
27. the Insurers relevant ability understanding experience skills resources and quality measures to provide the service required 2 Weak Weak response that does not fully meet the Consortium s requirements Response may be minimal with little or no detail or evidence given to support and demonstrate sufficiency or compliance Some minor reservations of the Tenderer s relevant ability understanding experience skills resources and quality measures to provide the service required 3 Satisfactory Response largely covers the Consortium requirements and some but patchy or brief evidence is given to support the answers 34 4 Good Criteria in the specification are met and evidence is provided to support the answers demonstrating sufficiency compliance and either actual experience or a process of implementation 5 Excellent Exceptional response that inspires confidence and indicates high level of commitment and benefits to be provided Response is clearly demonstrated and evidenced Full evidence provided to show how the service will be achieved either by demonstrating past experience or through clear process of implementation Response may also identify factors that will offer potential added value and with evidence to support this The score category for each criteria will therefore be allocated marks according to the weighting of the criteria as shown in the example tab
28. the tendering exercise is for the Consortium to seek enhancements of cover service standards and added value services from insurers appointed to the Framework Insurers are requested to put forward specific proposals as part of their application and consortium members will be encouraged to review such offers and statements as part of the qualitative contract award criteria used in the mini tender process The proposed mechanism for generating these benefits is by the formation of a Framework Agreement with insurers appointed to quote to all applicants for a maximum duration of 4 years South West Improvement amp Efficiency Partnership is not setting out to limit the number of insurers but rather to maximise competition for the benefit of the eligible authorities However insurers will be expected to qualify by satisfying the selection criteria set out in this tender document The process for tendering and utilising the Framework will be carried out in accordance with the public procurement legislation Use of the Framework Individual Members will only be permitted to gain access to the Framework s terms and benefits by inviting ALL appropriate providers in the Framework arrangement to bid for their business in a streamlined mini tender process In return providers must submit detailed quotations in response to ALL mini tender requests The only permitted exceptions to this will be if the individual authority fails to provide insure
29. this is a further box titled Additional Information This is to enable Members to detail anything additional that they feel should be highlighted to an Insurer For example Refuse might have transferred both in and out of the Council s functions and you wish for Insurers to be aware of this Historical Excesses This table is to demonstrate the areas where the Excess applying to the Council for various policies may have changed over time 41 You may wish to instead provide a spreadsheet of your own detailing such information rather than completing this table and a box is available for you to highlight which Appendix includes such information We would recommend that you identify to Insurers any Non Ranking excesses that apply Award Criteria To be set by each Member Instructions and examples are as per Section 7 of this User Guide Service Standards We have included example Service Standards relating to Underwriting and Claims separately We recommend that you review these as part of your preparation work for the tender It is important that you consider what is important to the Authority regarding these standards to ensure that appropriate performance management is agreed with the bidders However care should also be taken not too make the criteria too stringent as this may discourage bidders or increase the premiums required to meet the criteria 42 LOT 1 PROPERTY INSURANCE Lot 1 Property Insurance General Pro
30. 11 insurers are appointed to the South West Councils Insurance framework insurers will offer some volume premium discounts and cover enhancements to framework users to reflect their savings in business acquisition costs an electronic Framework tender document will provide consistency of data and presentation to insurers and ease of use for Framework users a Framework structure will generate maximum interest from insurers through minimising the PQQ workload Competitive pressure is maximised for the benefit of each individual authority whenever quotations are sought it makes it easier for local authorities to secure competitive quotations in a much smaller timescale if long term agreements with insurers are broken insurers are less likely to break long term agreements as they know that a competitive framework will respond to any call of arrangements the is no capital requirement from local authorities and minimal start up costs there is no need for framework users to align renewal dates LTAs scope of cover or programme structures each framework user can make its own decision over which insurer s to use a high rate of return is achieved for the framework users for the investment in the exercise the first four District Councils to use this framework saved a combined total of 214 000 in the first year with a further 667 000 of projected savings over the next four years This represents a return on investment of 1 360 on the investment
31. Aspen have indicated that they will treat each risk on its merit and have not offered any blanket cover enhancement for Framework Users Aspen have not offered any flexible payment terms Aspen have stated that options for long term agreements will be considered on a case by case basis and that each risk will be treated on its merits Aspen offer standard LTAs so this is not seen as an unsatisfactory or unreasonable proposal However it does not offer any specific Framework incentives either The insurer has offered full survey support in respect of property risks and assistance with risk management training and will contribute to each local authority s websites and internal newsletters Liability surveys and claims feedback are included within the premium cost and service levels promised to Framework Users Aspen also offer rehabilitation options as part of their response to Liability claims which often has a marked effect in reducing overall claim costs Travelers Insurance Company Ltd Travelers Insurance Company Ltd is registered in the UK as a Limited Company Reg 1034343 and is also registered for VAT Reg 690809506 FSA Registration number is 202549 Financial amp Economic Standing Travelers have a current Standard amp Poors Rating of AA which is significantly in excess of the minimum of A rating required for Liability insurance classes and the BBB rating required for Lot 1 Property insurance The Company has a strong record
32. Framework meet or exceed specific threshold limits These thresholds and discounts are set out in the table below Combined Fee Premium Inspection Fees Insurance Premiums gt 100 000 1 2 gt 250 000 2 4 gt 500 000 3 6 gt 1 000 000 5 10 We consider that the discounts proposed are offered at extremely reasonable and achievable threshold levels and offer an opportunity for Framework Users to secure additional savings if sufficient contracts are placed with Allianz Allianz will offer a monthly premium payment plan which attracts an interest charge of 8 per annum Although this shows some flexibility on the part of the insurer we consider the interest charge to be excessive and poor value for money However the insurer has also offered a profit share clause which subject to renewal with the insurer will offer a 20 refund of premium if the incurred loss ratio is less than 10 and a 10 refund if the incurred loss ration is less than 20 Again in respect of the risk classes the insurer has applied to quote for this gives Framework Users a real opportunity to save premium costs The insurer offers an discount of 5 of premium for a three year long term agreement and 10 for a five year long term agreement Inspection fees would be adjusted annually to reflect increases in Retail Prices Index Allianz offer a range of specialist engineering services including testing services lift maintenance audits engineering consultan
33. Teignbridge District Council Teignbridge DISTRICT COUNCIL South Devon www teignbridge gov uk South West Improvement amp Efficiency Partnership Insurance Framework User Guide Tendering on behalf of NS L Issued by Teignbridge District Council Forde House Brunel Road Newton Abbot Devon TQ12 4XX Verson o O aa E E E 9 November 2010 Table of Contents T WNOOUOUON aatitanineiainicinnieniandininidn nin niin dina eae 3 PAE E Eo i E E A O ened E pede OOE eases 6 9 Eligi pily pons tann 7 A Framework ProvideT sisgsriarier sinea ae 7 D PNG FRAME WON cisse aan 28 0 TNO GCOS 8 citrina aeaa aaa E EA aes 29 T AWard Criteria 32 8 Invitation To Tender Completion Guidelines ssssssseeesseeseceeeseesees 38 Appendices Insurer Contact Details Frequently Asked Questions 1 Introduction South West Improvement amp Efficiency Partnership has established an insurance Framework for the purchasing of Insurance cover and have invited applications from authorised insurance companies to form a consortium insurance framework for English District and non Metropolitan Borough Councils and National Parks Authorities associated and subsidiary organisations and Members of the SW Advantage Procurement Club Once the framework is in place there will be a uniform mini tender process through which individual authorities will present their insurance requirements to the South West Improvement amp Efficiency
34. also registered for VAT Reg GB 16500801 FSA Registration number is 202323 Financial amp Economic Standing RSA have a current Standard amp Poors Rating of A which is significantly in excess of the minimum of BBB rating required for Lot 7 Engineering insurance and inspection services 23 RSA Engineering is a trading name of RSA Plc and is not a separate legal entity The full resources of RSA Plc therefore underpin the activities of RSA Engineering RSA Engineering have indicated that they will provide the Framework service from their office in Manchester They have further offices in Chelmsford Croydon Birmingham and Glasgow which would give them a reasonable geographical presence if the Framework develops on a nationwide basis The engineering inspection service would be provided by local engineer surveyors who are supervised by a performance manager with a remit to ensure service delivery Technical Capability It is the intention of RSA Engineering to provide the claims handling service in house and this is would generally be the preferred option for Framework users Claims handling costs are included within the insurers premium rates and details of quality standards have been provided RSA Engineering is ISO 17020 and ISO 9001 accredited by UKAS and there are performance standards that the insurer has set and which are externally audited Service Delivery RSA Engineering have confirmed that they will write business di
35. ampshire GU14 6GB Contact Name Barbara Faal Regional Manager Contact Email Barbara faal uk zurich com Aviva Insurance UK Ltd City National Brokers 1st Floor 51 54 Fenchurch Street London EC3M 3LA Contact Name David Townsend Senior Trading Underwriter Contact Email david townsend aviva co uk Liberty Mutual Insurance Europe Ltd 3 Floor Two Minster Court Mincing Lane London EC3R 7YE Contact Name Duncan Spencer Vice President Contact Email Duncan spencer libertyiu com RSA Engineering St Marks Court Horsham West Sussex RH12 1XL Contact Name Tom Cass Engineering Inspection Development Manager Contact Email tom cass uk rsagroup com Risk Management Partners 9 Alie Street London E1 8DE Contact Name Julian Cummings Account Director Contact Email julian cummings rmpartners co uk 63 Frequently Asked Questions What are the benefits of establishing a Framework agreement for the procurement of insurance cover The key advantages of a framework approach are that the procurement process workload and cost for both insurers and local authorities is reduced substantially the level of insurer competition increases as they are attracted to the shorter simpler and cheaper call off process once the framework is established Effectively they need to respond to one complex tender in order to secure an opportunity to quote for all authorities of the same type over a 4 year period
36. as you can Cover Indemnity in respect of legal liability to pay damages to employees for death injury or disease arising out of and in the course of employment Including legal costs and expenses Limits Excess Aggregate Item Description Sum 1 Limit of Indemnity Inclusive of Legal Costs and Expenses 2 Excess each and every loss 3 Aggregate Territorial Limits Great Britain Northern Ireland Channel Islands and Isle of Man including temporary visits overseas by employees normally resident in such territories Wageroll Year Number of Employees FTE s 2003 04 2004 05 2005 06 2006 07 2007 08 2008 09 2009 10 2010 11 Estimate Definition of Employee to include Any Member of the Authority Any person under a contract of service or apprenticeship Persons Hired by the Authority Any Labour Master or person supplied by the Authority Labour Only Sub C ontractors Self Employed Persons Persons on Work Experience or similar schemes Authorised Volunteer workers helpers Any officer of member of the catering social sports of welfare organisation of the Authority The definition of employee included is standard but should you require any amendments please note these within the Additional Information box 50 Lot 1 Liability Insurance Public Products Liability Once again please complete the section based upon your current Limits Excess and Aggregates noting which sections the Aggregat
37. cable currently in force Limits Item Description Limit Excess Aggregate Officials Indem nity 1 2 Land Charges Indemnity 3 Public Heath Act 4 OTHER Estimates al Item Description Sum 1 Estimated Annual Income from Local Land Charges Search Activities Estimated Number of Personal Searches wih Estimated Number of Full Searches Average Cost per Personal Search no Average Cost per Full Search Retroactive Date The Estimates are required for Insurers to establish the Land Charges Indemnity premium Please also highlight any Retroactive Date applying If this varies by section please list all applying and note which section they apply to 52 LOT 3 MOTOR VEHICLE INSURANCE Lot 3 Motor Vehicle Insurance Please summarise the vehicle numbers by category Cover Comprehensive Various Use Social Domestic amp Pleasure Other Vehicle Numbers Private Cars Commercial Vehicles gt 7 5T Excess Private Cars Other Third Party Fire amp Theft Third Party Only Policyhalder s Busi Hire amp Reward usiness Other including Refuse Vehicles Special Types Commercial Vehicles Refuse Vehicles Commercial Commercial Vehicles Vehicles lt 3 5T 3 5T 7 5T It is likely most Members will not use vehicles for Hire amp Reward Please only indicate this section as required if you currently purchase such cover
38. cy and consultancy services relating to energy consumption These include Display Energy Certification and guidance and consultancy services on the Carbon Reduction Commitment and carbon trading strategies as a result of the Climate Change Act 2008 Ecclesiastical Insurance The Ecclesiastical Insurance Group is registered in the UK Reg 1718196 and is also registered for VAT Reg 477724800 FSA Registration number is 113848 Financial amp Economic Standing Ecclesiastical Insurance have a current Standard amp Poors Rating of A which is significantly in excess of the minimum of BBB rating required for Lot 1 Property insurance The Company has a bias towards property risks which is reflected in the application to only write Property risks under the Framework The company has a specific expertise in the insurance of historic and listed buildings and is a major insurance market for church buildings and schools Ecclesiastical Insurance is owned by the Allchurches Trust Ltd which is a registered charity that donates millions of pounds every year from the profits of the insurance business to support community life 10 Ecclesiastical have indicated that they will provide the Framework service from their office in Gloucester They have further offices in London Birmingham and Manchester which would give them a reasonable geographical presence if the Framework develops on a nationwide basis Technical Capability It is the intenti
39. d be offered but if costs rose then higher premiums would apply to all Zurich have proposed a maximum of a 20 refund for a consortium or Framework loss ratio of less than 25 and a 10 premium increase if the loss ration exceeds 100 This idea has some merit and will need to be considered by Framework users once further details can be provided by Zurich Municipal Zurich has offered a range of long term agreement terms from 3 years to 3 2 5 years 5 2 etc and in return will offer discounts These have not been quantified The insurer has given details of a range of additional services that will be provided from within premium costs including annual claims customer days annual insurance and risk management days a Framework user site on the ZM website for sharing policy claims and risk management information This is considered to be a valuable offer if the framework users are to collaborate and share best practice in order to reduce collective claims costs Zurich will also offer on line access to claims records claims awareness and fraud training property surveys for properties in excess of 5m reinstatement value surveyor involvement in new build projects and post loss property surveys Zurich will also offer rehabilitation services for injury claims at a cost of 400 per case insurance training for customers at 399 VAT per delegate as well as a range of advisory information via News amp Views and service to support b
40. dividual authorities Ace have confirmed that they are happy to consider flexible pricing options but have again stated that these will be considered at the time of quoting to individual authorities Ace have confirmed that they will offer a 5 discount for a three year long term agreement and a further 2 5 discount for a five year long term agreement This is considered to be in line with market practice rather than being an additional benefit for Framework users Ace have indicated that they are not able to provide any additional services to Framework users and that this question does not apply in the context of their application to only provide Personal Accident and travel insurance Zurich Municipal Zurich Municipal is a Trading division of Zurich Insurance Plc which is registered in the Republic of Ireland as a Public Limited Company Reg 13460 as well as in England Reg BR7985 and is also registered for VAT Reg 107831677 FSA Registration number is 184006 Financial amp Economic Standing Zurich have a current Standard amp Poors Rating of AA which is significantly in excess of the minimum of A required for Liability insurance Lots and the minimum BBB rating required for the short tail classes of insurance As Zurich Municipal is a trading division of Zurich Insurance plc there is no separation of legal liabilities and assets The entire balance sheet of Zurich Insurance is therefore available to meet the liabilities of Zur
41. e framework has expired and there is no replacement in force then the individual authority must re tender the programme via a full public procurement legislation compliant tender Can access the framework without using an insurance broker No It was the intention to remove as many barriers to insurers participating in the framework as possible Zurich Municipal of course has a direct dealing business model and this framework does not seek to change that However most insurers require cover to be placed via a broker agency as they rely on brokers to collect premiums for them undertake credit control play a part in policy issue and to act as the interface between underwriter and policyholder Therefore in order to access all insurer quotations each authority is required to appoint a sole broker to secure quotations and evaluate tenders received Whether there is a need for any broker to be retained on an ongoing basis will depend upon the outcome of the tender but any ongoing broker fees will need to be added to the insurer premiums and compared to the Zurich terms in order compare the total cost of each insurer option Is there any obligation to use the services of Heath Lambert to access framework insurers No Heath Lambert are the insurance advisers appointed by South West Councils for the sole purpose of establishing the Insurance Framework Their contract does not include acting for individual authorities in call off arrangements be
42. e applies to within the Additional Information box You may not currently purchase Hirers Liability or Libel amp Slander cover if so please mark these as N A Once again please note any requirement for higher limits or covers or new quotations within the Additional Information Box Cover Indemnity against Legal liability for accidental bodily injury or disease fatal or non fatal to third parties or loss or damage to third party property arising out of business activities including goods or products including food and drink sold supplied or distributed by the insured Casts in Addition Limits Excess Aggregate Item Description Sum 1 Public Liability Limit of Indemnity Products Liability Limit of Indemnity Excess each and every loss Aggregate Hirers Liability Limit of Indemnity if required Libel amp Slander Limit of Indemnity if required njej w N Territorial Limits Worldwide excluding USA Canada Revenue Year Annual Total Revenue 2003 04 2004 05 2005 06 2006 07 2007 08 2008 09 2009 10 2010 11 Estimate Year Annual Hitings Estimate if applicable 2010 11 Estimate The Annual Hirings Estimate only requires completion if you currently have or require a quote for Hirers Liability 51 Lot 2 Liability Insurance Officials Indemnity Land Charges Public Health Act Please complete the relevant sections noting the Limits Excesses and Aggregate if appli
43. eks Presentations by Tenderers X 5 weeks Award Agreed X 3 weeks Meeting with successful Tenderer s X 2 weeks Contract Starts Renewal Date X We would recommend that you start at the last Activity ie the Renewal date and work upwards Data Required to Undertake the Tender You should also consider what information is required to complete the exercise Some of this information will be required from your current and or your previous Insurers This would include e Claims Experience for the previous 5 years as a minimum by each Class of insurance The Motor Claims experience to be provided in standard ABI approved format e Claims Listings for the previous 5 years by each Class of insurance e Engineering Schedules You should also be prepared to provide claims data on a Ground Up basis where you handle claims below the excess in house Other information likely to be required depending on the Lots selected would be List of General Properties inc Sums Insured List of Leasehold Shops Commercial Properties inc Sums Insured List of Housing Properties over 6 storeys including postcodes and Sums Insured All Risks Schedule Safe List Fleet List Craft List Marine Cover only Professional Indemnity Proposal Forms Professional Liability cover only List of non ranking excesses applying where applicable 31 7 Award Criteria As part of the Framework process an assessment of the Framework Providers ab
44. er dats for response Framework Providers MUST provide a quotation It is recommended that Claims Data is provided for a minimum of 5 years This enables Insurers to undertake a thorough review of your loss history and to establish any patterns or to identify some incidents as one offs The Role of South West Improvement amp Efficiency Partnership South West Improvement amp Efficiency Partnership will give ad hoc advice to eligible authorities to guide them through the mini tender process and through any EU procurement process if requested However South West Improvement amp Efficiency Partnerships will not assist members with the evaluation of insurer terms nor will it recommend any one insurer over another South West Improvement amp Efficiency Partnership will be involved in helping to ensure where reasonably possible that the operation of the Framework complies with EU procurement regulations and that the service providers meet their contractual obligations under the Framework Agreements South West Improvement amp Efficiency Partnership will also provide a focal point for the development of the Framework arrangements to the benefit of both authorities and insurers If a member requires assistance outside the scope of South West Improvement amp Efficiency Partnership remit described above they will be encouraged to appoint their own insurance advisors Heath Lambert as advisors to South West Improvement amp Effic
45. extensions which can be purchased in addition to basic policy cover for example employment dispute cover Travelers has declined to offer a specific Framework discount but will offer long term discount and low claims rebate options primarily in relation to Liability cover but also for Property cover A table of the standard rebate percentages are shown in the table below Earned Loss Ratio Rebate as age of premium Less than 10 10 10 to 20 7 5 20 to 30 5 0 30 to 40 2 5 Over 40 Nil Travelers have offered to quote with long term agreements of three and five years with options under both to extend the agreement for a further two years A minimum discount of 5 is offered Travelers have confirmed that they will offer complimentary risk management services and training services to their customers free of charge Risk Management seminars and workshops are also offered to their customers free of charge and they will provide electronic policy documentation and claims records as well Ace European Group Ltd Ace is registered in the UK as a Limited Company Reg 1112892 and is also registered for VAT Reg 668395969 14 FSA Registration number is 202803 Financial amp Economic Standing Ace have a current Standard amp Poors Rating of A which is significantly in excess of the minimum of BBB rating required for Lot 4 Accident and Health Insurance Within the Group Ace Europe has a number of specific product ranges
46. h all of the brokers who operate specialist Public Sector Teams so this will not in any way be a restrictive or unacceptable practice for the Framework users This response offers maximum flexibility to Framework users enabling them to either deal direct with local authorities or to deal with any of the recognised specialist public sector brokers in the marketplace Ace have provided a list of KPls in relation to both underwriting services and claims services The underwriting service standards proposed are to a higher standard than those required of all insurers by the Financial Services Authority for example issuing policy documentation within 20 days rather than 30 Service Standards Discounts and Cover Ace have confirmed that they intend to respond to every request for a quotation provided that they are given adequate time to prepare a quotation and there is sufficient underwriting information provided to them Ace have responded to 7C confirming that they will offer a discount for Framework Users but have then stated that details will be available at the time of quoting This is unhelpful in assessing what value this discount will offer to framework users Ace have confirmed that they will be very flexible in terms of policy wording in response to the needs of individual authorities However again no details are provided and Ace have indicated 15 that they will consider cover enhancements at the time that they provide quotations to in
47. h have stopped short of offering any direct enhancements for Framework users but it is true to say that the insurer already provides a bespoke local authority wording for all risk classes Zurich have offered to provide payment of premiums by instalment but have indicated that they would require an unspecified interest charge for doing so This shows some flexibility by the insurer but does not provide enough information for us to evaluate the benefits for Framework users However they go on to offer a Claims Performance Adjustment CPA or loss ratio discounts on Property and Motor risk classes although if the CPA is to apply the insurer will require a higher premium at inception of the policy We are not sure whether this will be a real benefit to authorities or whether the higher up front premium will simply revert to the normal premium by application of the CPA 17 However the CPA discount tables are shown below Zurich Municipal Property CPA Discount Table Incurred Loss Ratio Year 1 Year 2 Year 3 Less than 25 5 7 5 10 25 50 2 5 7 51 65 Nil Nil 2 Zurich Municipal Motor CPA Discount Table Incurred Loss Ratio Year 1 Year 2 Year 3 Less than 25 20 25 30 25 40 15 20 25 41 55 10 15 20 56 70 5 7 5 10 Over 70 Nil Nil Nil ZM have also offered to provide Framework users a profit or loss agreement whereby if collective claims costs are contained then a Framework discount woul
48. hilst this falls short of what we were hoping to achieve bearing in mind the potential variation in risk quality and risk exposures that they could be required to quote for this is an understandably guarded response from an underwriting perspective Tokio Marine have offered an instalment option which would attract a 5 interest charge We have clarified with the insurer that this offer refers to a monthly instalment option and the interest rate is 5 per annum The insurer s standard approach would be to offer a three year long term agreement which would not be broken proved that the loss ratio remained below 50 Whilst ideally we would have liked a higher loss ratio quoted this arrangement would give protection to Councils as and when the hard insurance market returns Effectively what Tokio Marine are saying is that they will guarantee that the price of market capacity will not impact on their policyholders only a loss ratio of gt 50 will trigger a breach of long term agreement The insurer has not offered to provide any additional services to policyholders either within premium rates or for additional cost In this case the insurer considers that any risk control advice surveys etc should be provided by the broker and they are structured to operate in this manner Allianz Insurance Ltd Allianz Insurance Ltd is registered in the UK as a Limited Company Reg 84638 and is also registered for VAT Reg 384 463 821 FSA Registration
49. ich Municipal We have no reservations over the financial position of Zurich Insurance plc at the present time and do not consider that a parental guarantee is necessary Zurich Municipal have indicated that they will provide the underwriting service sales administration property claims handling and complex liability claims from their Farnborough office Motor claims are to be delivered from Fareham Their Birmingham office will provide a range of claims handling services ZM Account Managers and Claims Service Managers risk management consultants engineering surveyors and motor engineers are all home based which will give an excellent geographical spread of resources for Framework users Technical Capability It is the intention of Zurich Municipal to provide the claims handling service in house and this is would generally be the preferred option for Framework users A separate method statement is given for the claims handling service giving details of the claims structure and resources has been provided together with details of Key Performance Standards that are applied to the claims process and reserving practice Claims handling costs are included within the insurers premium rates Zurich have confirmed that they will provide a high quality underwriting and claims service to Framework users and have provided an extremely detailed method statement to support this This response covers both underwriting and claims services and makes specific
50. iency Partnership are available to advise individual authorities as required Role of Teignbridge District Council Teignbridge District Council are nominated as the Lead Authority for the Consortium Framework and they are acting as the Procurement Lead for the Project The Council will manage the process for the appointment of insurance companies to the Framework Agreement and will be responsible for the governance of the Framework for the first four year period The Council will address any Member or Insurer queries concerning the operation of the Framework Agreement At annual intervals the Council will provide a report to South West Improvement amp Efficiency Partnership and Consortium Members on the KPIs relating to Membership the Consortium 29 Framework Insurers performance and will provide a summary of the cost benefits achieved and a return on investment statement During 2013 the Council will undertake a consultation exercise with all consortium members to establish the level of demand for a new Framework and the level of commitment of Members to fund an equal share of the cost of the necessary Framework Tender Exercise The Role of Heath Lambert The role of Heath Lambert is primarily to act as independent advisers to South West Improvement amp Efficiency Partnership in the establishment and development of the insurance framework Heath Lambert are not undertaking to place any cover on behalf of the Members once the f
51. ility to deliver the services required was undertaken This should not therefore form part of your Award Criteria These elements include Financial Rating Membership of Professional Bodies Technical Capabilities Qualifications Public Sector Knowledge Equal Opportunities Environmental Matters Health amp Safety You will still need to establish your Award Criteria and include this within your Invitation To Tender document The basis of this is up the individual Member concerned together with guidance from their professional advisers and procurement tea but an example is provided below All Authorities using the Consortium Framework will award their contract s on the basis of the Most Economically Advantageous Tender with a weighting of 40 for Price and 60 for Quality Criteria The model for contract awards is set out below and this will be included in the Framework User Guide although individual Authorities will be able to apply their own weightings to sub criteria in order to reflect their individual preferences and needs All Authorities using the Framework will be required to include their version of the contract award criteria in the mini competition tender documents which will be submitted to all insurers appointed to the Framework in respect of the insurance Lots relating to the services required The model criteria to be used are listed below together with the proposed weightings to be applied to each 1 Insura
52. in this project Why can t the framework be used by organisations other than District Borough Councils and National Park Authorities In an ideal world the framework would be open to all public sector organisations but the range of organisations from County Council unitary authority district council NHS Trust police fire authority to housing association all represent vastly different risks Individual insurers have different underwriting appetites and strong preferences to write or not write cover in respect of some of these activities In order to attract maximum interest from insurers and secure a commitment from them in terms of providing quotations premium discounts and 64 cover enhancements it was necessary to provide them with a homogonous group of risks This ensures that the insurer understands the risk exposures that it will be required to quote for and gives the underwriters the confidence to compete strongly for each insurance tender The framework only has a lifetime of four years Can my authority place cover under a five year long term agreement Yes Any eligible authority can seek to place cover under a long term agreement which exceeds the lifespan of the framework agreement provided that the contract starts within the currency of the framework In the event that a long term agreement is broken by insurers then the authority must either re tender the risks via the framework or any successor framework but if th
53. indicated that they will provide the Framework service from their offices in Bristol and London They have further offices in Manchester which would give them a reasonable geographical presence if the Framework develops on a nationwide basis Technical Capability It is the intention of Liberty to provide the claims handling service in house and this is would generally be the preferred option for Framework users especially as environmental impairment liability claims are a very specialised area Liberty offer a 24 hour claims reporting and technical helpline staffed by Cunningham Lindsay which is included within the premiums quoted Claims handling costs are included within the insurers premium rates Details of quality measures and processes include peer reviews internal audit processes and compliance with FSA rules In total Liberty have some 300 control processes in place within their business Service Delivery Liberty have indicated that they are a broker only market and are not resourced to deal with policyholders direct This effectively means that they will only place cover via a broker agency and rely upon insurance brokers to collect premiums on their behalf provide credit control premium accounting and to perform a role in the policy issue process which is critical to their FSA authorisation and approved business processes Their application names Heath Lambert Aon Marsh Willis JLT Oval Jelf and Towergate as the principal br
54. ing rather than an additional cost If cover is required to be placed via a broker s agency agreement then they will require an annual fee for provided the placement and advisory service to the local authority The cost of this needs to be included in the comparison of costs with any insurers who agree to deal direct with the authority to ensure that the total cost of each option is compared Insurers are requested to quote for all risks presented to them What will happen if they decline to quote Teignbridge District Council are monitoring the performance of the framework and the behaviour of both insurers and framework users to ensure that the conditions of the framework agreement are complied with It is accepted that insurers may be unable to quote for some specific cases mainly where the risk exposures are for some reason not covered by their reinsurance arrangements or where the individual authority fails to provide the information required or to allow sufficient time for the insurer to quote However if an insurer fails to provide quotations outside of these two areas of justification Teignbridge District Council will initially seek to resolve the situation but if there is a persistent failure to comply the insurer will be removed from the framework My authority has a requirement for an insurance class of business e g Aviation risks not specified in the Insurance Framework Can I use the framework but tender this specific risk ou
55. is potentially of value to Framework users but we do have questions over the application of the loss ratio and whether the premium volume is cumulative during the four year framework or based on annual premium value It does however show that the insurer is prepared to look at incentive schemes Neither Chartis or HSB have offered any enhancements of cover to Framework users although both have indicated that they will review cover on a case by case basis HSB have indicated that they can offer flexible premium payments via Premium Credit but have not indicated what interest charge would apply Chartis has confirmed that they will not offer any flexible premium terms Both HSB and Chartis have offered 3 year long term agreements 3 year LTAs with an option to extend for a further 2 years and 5 year LTAs However neither company has indicated the premium discounts they would allow in each case HSB have offered a range of additional services such as Health and Safety services Energy Performance certification and Display Energy Certificates Chartis have not offered anything 26 Gallagher Bassett have offered Legionella surveys as part of a Liability risk placement and loss control days and access to Risxfacs their own online claims handling system Physical surveys are also offered and there is significant value in some of the services offered 27 5 The Framework Conditions of Contract Framework Agreement If during the Tender peri
56. l Risks items If so please delete Item 1 and detail which Schedule includes the spreadsheet table If differing excesses apply please provide details of such within a separate spreadsheet rather than completing the excess boxes The request to note all Conditions Exclusions applying is for the Framework Tenderers and not for Members to complete Lot 1 Property Insurance Money Again this section should be completed fully Please add additional rows should the table be inadequate to detail all of your limits applying Additional Information Please include a Safe Schedule within an Appendix and detail this here Lot 1 Property Insurance Terrorism Please only complete this section if you currently purchase Terrorism insurance If you do not purchase such cover but require a quote please request such in the Additional Information box 49 LOT 2 LIABILITY INSURANCE Lot 1 Liability Insurance Employers Liability Please complete this section based upon the current coverage in force You may not have an excess or an Aggregate for your Employers Liability policy please mark these as N A if so Should you have an Aggregate please note in the Additional Information box which sections this applies to The wageroll and FTE employees data will be of use to Insurers when establishing how the claims experience has changed potentially due to fluctuations in numbers Please provide as much of this information
57. le below Scoring Matrix for Insurance Mini Competition Tender Evaluation Matrix Criteria Weighting 1 2 3 4 5 Insurance Cover Price amp Pricing Structure 40 8 16 24 32 40 Quality 60 e Service Standards 10 2 8 10 e Insurance Cover 30 6 12 18 24 30 e Range of Insurer Services 10 2 4 6 8 10 e Expertise 10 2 4 6 8 10 Claims Handling Price amp Pricing Structure 40 8 16 24 32 40 Quality amp Service Standards 60 12 24 36 48 60 For each contract award criteria used a weighting for sub criteria will be set by the individual Contracting Authority and a scoring matrix drawn up to allocate a score for each criteria The exact method of sub criteria weighting will be set by the individual authority but the 60 40 split between Price and Quality Criteria is fixed and this model will be the example circulated to Consortium members and they will be required to follow the same methodology 35 An example evaluation matrix is shown below whereby each insurer proposal is scored on a comparative scale of 1 5 and marks are allocated to each insurer under each contract award criteria so that the maximum score is 100 for the insurance proposal and a further 100 for the claims handling service Each insurer quote is therefore given a total score which when compared in a summary table will show the successful insurer proposal An example of a tender evaluation sheet for an
58. luntary but we recommend that you consider this It enables an opportunity for both the Member and the Framework Providers to meet and discuss the key requirements of the tender It should be borne in mind that the offer to meet with one Framework Provider should then be open to any of the other Framework Providers within that Lot Similarly we have included the potential to meet with Tenderers following the Award of the Contract This is a particularly useful meeting should you be changing your Insurance Provider as you will need to consider amendments to contact details new claims procedures etc Risk Management This box is to be completed with details of particular Risk Management initiatives undertaken within the Council You may wish to include examples of your Risk Register Health amp Safety policy or similar and these should be noted as being included within the Appendices within this box Council Services It is important to detail to Insurers which specific Services Functions are not under the Authorities Control and when they were transferred out One box is labelled as OTHER Please feel free to overtype this to include another Council Service that may be specific to you and has transferred in or out COUNCIL SERVICES Service Function Currently Undertaken Y N Date Transferred Out Housing Refuse Leisure Centres Highways Environmental Health Building Control Finance Administration OTHER Below
59. marketing tool in that it provides members with a tangible link between premium rates and collective purchasing behaviour within the constraints of a relatively uniform tendering environment Insurers and claims handlers are encouraged to address this discount specifically in their applications and put forward proposals for volume business discounts to users of the framework agreement in recognition of 1 the standardised presentation of tender information from eligible authorities 2 amore objective and systematic assessment of tenders in accordance with prescribed transparent contract award criteria 3 being part of a finite panel of service providers operating within a more structured tender process 4 A greatly simplified tender process insofar as the selection part of the procurement process will only need to be addressed once for this group of local authorities in a four year period rather than for each authority on a case by case basis 5 access being given to a large number of tendering opportunities every year because members who choose to use the Framework will be compelled to approach ALL of the Framework insurers for quotations in respect of each Lot for which quotations are needed in order to achieve compliance with the EU Public Procurement regulations This will greatly reduce the marketing effort required by any insurer wishing to build up or consolidate their position within the local authority sector Another objective of
60. n of that response The insurer is prepared to offer volume discounts but stops short of proposing threshold values and percentage rates Their response is qualified to say that the extent of discounts will depend on both exposure issues and loss ratios Ecclesiastical have offered to provide enhanced cover which varies from their standard wording but only on a case by case basis They have undertaken to adapt cover to provide maximum benefit to policyholders and also provide a bespoke risk management service for all clients This is likely to be of more financial benefit to local authorities in helping reduce claim numbers and claim costs than providing additional cover extensions The insurer confirms that they will offer a Low Claims Rebate to individual policyholders and have provided a wording for the agreement which increases for the same loss ration over each of three years within the long terms agreement Loss Ratio Year 1 Year 2 Year 3 Less than 20 5 0 7 5 10 0 20 40 2 5 5 0 7 5 Ecclesiastical offer a standard 3 year Long Term Agreement wording and offer a 5 premium discount in return Ecclesiastical will offer a range of technical services to their customers including risk management advice business continuity services training and health and safety advice They offer to provide individual tailored packages for each client and offer 1 free day per annum of risk 11 management advice They will add one further day
61. nce Cover Price Weighting 40 The Council will consider price pricing structure and outlook for price stability cost of claims handling if priced separately framework discounts and terms for payment when selecting insurers The Council will consider entering into a long term agreement or contract with insurers Insurers should confirm how such agreement will be affected if the Council elects to increase or decrease limits of indemnity sums insured or levels of excess Please confirm the wording of the long term agreement In the event that a LTA is agreed the Insurer must give the Council at least 60 days notice in advance of the renewal date if the Insurer intends to breach the agreement If the Insurer fails to comply with this notice period then the Insurer will be bound to offer renewal at the current rates terms and conditions 32 Quality and Service Standards Weighting 60 Example Sub Criteria Service Standards Weighting 10 Insurers must comply with the service standards set out in the mini competition tender documents for the issue of policy documents response to enquiries claim processing provision of claims information and requests for mid term cover adjustments Cover Weighting 30 The Council will give consideration to the range of cover perils offered policy conditions warranties exclusions extensions and limitations of cover The Councils is flexible and will consider quotations on different ba
62. ng Tor Homes Teign Housing Westcountry Housing Weymouth amp Portland Housing Yarlington Housing and other contracting authorities in the South West of England as may join Advantage SW Other English District non Metropolitan Borough Councils and entities or organisations financed managed or controlled by them or National Parks Authorities are eligible to join the consortium and access the Consortium Insurance Framework provided they apply to the Consortium for membership and are prepared to accept and sign the Consortium Framework Users Agreement Benefits of Using the Framework The potential benefits to users of the framework will include Administration efficiencies for Members Reduction in Broker costs for preparing the tender document Increased Competition from Insurers Access to a quicker and simpler OJEU compliant tender process Enhancements to cover Potential Collaborative Purchasing Discounts Objectives of the Framework An objective of the consortium framework is that participating authorities will benefit from competitive premiums and where applicable claims handling fees which are discounted on the basis of overall volumes of business written by each service provider under the framework Under this arrangement increases in the volume of business to each insurer is expected to lead to increased discount rates for all authorities insured with or placing business that insurer or service provider This is an important
63. ocess of competing for work between Tenderer s on the Framework Agreement The first tranche of District Councils to access the framework will require cover from 1 October 2010 Tenders Undertaken Outside of the Framework Process Members should take care that should they undertake any element of the tender exercise outside of the scope of this Framework for example inviting tenderers to quote who are not an approved Framework provider then the normal Public Procurement rules will apply 28 6 The Process Within Part 8 we provide full instructions regarding completion of the Invitation To Tender This document MUST be used to provide the required data to Framework Providers although authorities may wish to add additional data The document provides opportunity for you to provide details of your Authority the Risk Management work undertaken details of the services and functions undertaken claims experience and underwriting data The document is a combination of the Renewal Questionnaires that Members would usually receive from Insurers and also the Market Presentation that either the member or more likely your Insurance Broker would create to provide details to Insurers The use of a standardised document is a requirement of the process as this ensures that all Framework Providers are issued with a minimum level of underwriting data to offer quotations If the document is fully completed allowing a minimum of 27 calend
64. od the Council issues any circular letters to Tenderer s in order to clarify or alter part of the Tender documents then such circular letters shall form part of the Contract Framework Agreement and Tenderers shall be deemed to have taken account of them in preparing their submission Tenderers shall also promptly acknowledge any circular letters that they receive Framework Agreement Period It is intended that any resultant Framework Agreement shall commence as soon after receipt of formal letter of award as may be agreed The Framework Agreement period is to be up toa period of four years subject to performance and termination clauses contained within either the Standard or Special Terms and Conditions whichever prevails For clarification purposes the appointment of any Tenderer s to this Framework Agreement does not in itself form a Contract between the Tenderer and the Council Framework Agreement For the avoidance of doubt the Council s do not bind themselves to secure the purchase of specific quantities of any services Framework agreements represent the Tenders submitted by the Tenderer s to the Council The Tenderer s stands ready to accept orders from the Council s for the provision of Services in accordance with all descriptions Specifications and Terms and Conditions contained in the Framework Agreement itself The formal contract will be formed by each individual Council through a mini competition exercise which is the pr
65. okers that they would transact business with under this Framework However they have indicated they will work with other brokers and we are confident that this arrangement will extend to all of the brokers who operate specialist Public Sector Teams so this will not in any way be a restrictive or unacceptable practice for the Framework users The insurer has written cover for Derby City Council Derbyshire County Council Buckinghamshire County Council Shepway District Council and the London Borough of Merton The insurer has provided a step by step method statement for responding to requests for quotations under the Framework responding to mid term adjustments queries and for handling claims The insurer has set out response times and KPIs within each section 22 Service Standards Discounts and Cover Liberty have confirmed that they intend to respond to every request for a quotation unless any tender documents contains exposures or insured values which fall outside of the insurers reinsurance treaty protection or for uninsurable risks This is a reasonable response and attracts a Pass score The insurer has offered a discount of 5 for all cover placed via the Framework Further discounts will be allowed to individual authorities who place volume premium with Liberty via the Framework These discounts are shown in the table below GWP Threshold per authority age Discount Up to 99 999 0 100 000 to 249 999 5 250 000 to
66. omic Standing Chartis have a current Standard amp Poors Rating of A which is compliant with the minimum of A rating required for liability risks and significantly in excess of the minimum of BBB rating required for the shorter tail risks such as Lot 1 Property insurance Chartis will write cover for all of the Lots that RMP have tendered for with the exception of Lot 7 Engineering Inspection and Insurance and Contractors All Risks Works in Progress and Computer insurance under Lot 1 which will be insured by HSB Engineering Insurance Ltd HSB Engineering have a Standard amp Poors Rating of A which is significantly in excess of the minimum of BBB rating required for the shorter tail risks they have applied to write under Lots 1 and 7 Chartis has no parent company having separated from the AIG Group in 2008 HSB Engineering Insurance Ltd is part of the HSB Group which in turn is a wholly owned subsidiary of Munich Re RMP will be responsible for providing the client interface on behalf of Chartis and HSB They are based in London but have Account Directors based around the UK who work from home RMP already provide a national service for local authority risks so they have a reasonable geographical presence if the Framework develops on a nationwide basis Technical Capability The key personnel from RMP are all very experienced and will be the personnel who will have day to day contact with Framework Users It is the intention
67. on of Ecclesiastical to provide the claims handling service in house and this is would generally be the preferred option for Framework users Claims handling costs are included within the insurers premium rates and details of quality standards including ISO 9002 accreditation have been provided Service Delivery Ecclesiastical have indicated that they are a broker only market and are not resourced to deal with policyholders direct This effectively means that they will only place cover via a broker agency and rely upon insurance brokers to collect premiums on their behalf provide credit control premium accounting and to perform a role in the policy issue process which is critical to their FSA authorisation and approved business processes Their application states that they currently deal with circa 4 000 brokers We are confident that this arrangement will extend to all of the brokers who operate specialist Public Sector Teams so this will not in any way be a restrictive or unacceptable practice for the Framework users The insurer has written cover for ocal authorities Royal Albert Hall Chatsworth House Blenheim Palace and 42 out of 43 Cathedrals Ecclesiastical has written a number of property insurance risks for schools and local authorities at District Council and Unitary Council levels Service Standards Discounts and Cover Ecclesiastical have confirmed that they intend to respond to every request for a quotation without qualificatio
68. per annum for every 75 000 of premium spend Aspen Insurance UK Ltd Aspen is registered in the UK as a Limited Company Reg 1184193 and is also registered for VAT Reg 795579748 FSA Registration number is 202644 Financial amp Economic Standing Aspen Insurance UK Ltd have a current Standard amp Poors Rating of A which is significantly in excess of the minimum of BBB rating required for Lot 1 Property insurance and matches the minimum requirement of A for Lot 2 Liability insurance Aspen Insurance UK Lid is a subsidiary of Aspen Insurance Holdings Ltd A reassuring aspect is that a parental guarantee is in place so that there is additional security offered by the whole group of companies Aspen have indicated that they will provide the Framework service from their sole UK office in London From an underwriting perspective it makes sense to apply a consistent underwriting approach via a central team Technical Capability Aspen have indicated that they will provide claims handling services in house but may use third party claims administrators and loss adjusters Lucas Associates working to agreed Aspen service level agreement and standards Claims handling costs are included within the insurers premium rates Service Delivery Aspen have indicated that they are a broker only market and are not resourced to deal with policyholders direct This effectively means that they will only place cover via a broker agency and
69. perties Please mark the Perils required with an X to identify the cover required If your policy is not on a Specified Perils basis please mark the All Risks box and identify if the Theft basis is Full or not LOT 1 PROPERTY INSURANCE GENERAL PROPERTIES Basis of Cover Fire Lightning Aircraft Explosion Riot Civil Commotion peers ROckaa eiut Workers Malicious Damage Earthquake Subterranean Fire Storm Flood Escape Of Water Impact by Vehicle Impact by Animal Sprinkler Leakage Subsidence Theft Full Theft Accidental Damage OR All Risks Including Full Theft Sums Insured Item Description Declared Value Sum Insured 1 Municipal Buildings 2 Professional Fees Debris Removal 3 Contents 4 Glass 5 Leisure Centres Buildings 6 Other 1 Interest All property owned used leased or rented by the Insured or in their care custody and control or in which they hold an interest or which is held in trust or on commission or on consignment by them and for which they are responsible or wish to assume responsibility Including Personal Property of the Insured s officials and employees whilst on any premises described below and personal tools of trade being used on the business of the Insured anywhere in the UK You will also need to complete the Declared Value and Sum Insured boxes It would be expected that your General Properties are insured including a 115 this may be higher or lower Da
70. policy issue By way of payment for these services insurers pay brokers a low level of commission These insurers have taken a business decision to outsource this work and out intention is to ensure that the framework is structured in such a way to attract insurers rather than disqualify them In the event that an insurer appointed to the Framework requires cover to be placed through the agency of an FSA registered insurance broker appointed by an individual Framework User it is accepted that a commission of not more than 2 5 may be paid by the insurer to the appointed broker as compensation for work undertaken by the broker on behalf of the insurer Any such payments are to be declared to the Framework User upon request Insurers are however required to submit quotations net of all normal commissions and contingent commissions any commission dependent upon volume placement or profitability via a specific agency agreement Does the use of brokers add to the cost of placing cover via the framework An insurance broker will make a charge for work in connection with a tender exercise and this would typically be in the region of 4 000 5 000 The workload in relation to the framework call off arrangements is reduced and a lower charge for this work should be payable than for a full public procurement 66 compliant exercise to reflect this As most authorities use a broker in tender exercises anyway this is viewed as an additional sav
71. ppendices Lot 1 Property Insurance Private Dwellings This follows the same procedure as for the General Buildings section other than this is specifically for Housing Leasehold Flats Mortgaged Properties The number of Perils are increased to reflect the Homeowners Perils that may be required Within the Sums Insured box please only complete the sections relevant to your Authority and mark the others as N A Please amend Other 1 2 or 3 as required Sums Insured Item Description Declared Value Sum Insured 1 Buildings Housing Stock Co Owned Properties Leasehold Flats Professional Fees Debris Removal Other 1 Other 2 Other 3 N D n S wN The remaining sections should be completed using the same instructions as applying to the General Properties section 46 Lot 1 Property Insurance Industrial Units Leasehold Shops Once again this element of Lot 1 follows largely the same procedure as General Properties The main differential is contained within the Sums Insured where the Rental Income data needs to be listed including the number of months insured Please ensure that where the number of months is different to 12 that the rental income sum insured represents the total period rather than an annual figure For example if the annual rental income is 100 000 and your number of Months Rental Income is 18 then the Sum Insured should be shown as 150 000 Sums Insured
72. ramework is in place Heath Lambert will also upon request provide a Tender Management Service to individual authorities using the South West Improvement amp Efficiency Partnership Insurance Framework which can include all or any of the following elements e completion of the Insurance Questionnaire and Specification form in its entirety on the authorities behalf e gathering and presenting supporting information e mini tender evaluation To provide this service a fixed fee at preferential rates agreed with South West Improvement amp Efficiency Partnership on behalf of member authorities will be payable There will be no compulsion to use Heath Lambert for these services and authorities are permitted to use the services of any appointed insurance broker advisor Timetable By using this Framework and the mini tender process the requirements to comply with the OJEU Public Procurement timetables are avoided However it is still important that you do provide enough time to undertake this process and also give the Framework Providers ample time to undertake a thorough review of the tender specification to provide the most competitive terms to the Member Authority The suggested timetable within the report is as follows 30 Activity Deadline Tender Documents Released X 11 weeks Meetings With Tenderers X 8 weeks Last Date for Submission of Questions X 7 weeks Return of Tenders X 6 we
73. rance motor insurance and home insurance for the employees of local authorities who insure with them via the Framework Liberty Mutual Insurance Europe Ltd Liberty Mutual Insurance Ltd have applied to quote for Environmental Impairment Liability Insurance and Pollution cover only as a stand alone policy under Lot 2 Liability Insurance As a number of insurers have excluded this risk from their standard wording this is considered to be a 21 useful product in ensuring that Framework Insurers have as much choice as possible and competitive pressure is exerted on insurers to ensure value is reflected in premium quotations Liberty Mutual is registered in the UK as a Limited Company Reg 01088268 and is also registered for VAT Reg 244637455 FSA Registration number is 202205 Financial amp Economic Standing Liberty Mutual has a current Standard amp Poors Rating of A which means that the Company has an A rating but at the lower end of the A scale This is at the lower end of the scale of the standard required of A for insurers of Lot 2 Liability insurance but as the insurer is only applying to write environmental impairment liability as a small part of this Lot their financial standing is acceptable Liberty Mutual Insurance Europe Ltd is part of the Liberty Mutual Group and a reassuring aspect is that a parental guarantee is in place so that there is additional security offered by the whole group of companies Liberty have
74. rding provided offers 5 premium fee discount in return for a 3 year LTA and 10 discount in return for a 5 year LTA The wording is considered to be acceptable and reasonable in scope RSA Engineering are able to offer a wide range of additional engineering related services which will be of interest to local authorities and National Park Authorities These services include specialist engineering or related health and safety inspection and testing services which will supplement the expertise of in house resources Risk Management Partners Ltd Chartis HSB Risk Management Partners Ltd RMP have submitted a tender as Managing General Agents for Chartis Insurance and HSB Engineering Insurance They have tendered to quote for risks under 24 Lots 1 2 3 4 5 7 and 9 and it is a requirement that any claims made against cover placed with Chartis and HSB will be handled by Gallagher Bassett a specialist claims handling company owned by Arthur J Gallagher who are also the parent company of RMP The four companies form one entity for the purpose of providing insurance cover for local authorities Chartis Insurance UK Ltd is registered in the UK as a Limited Company Reg 1486260 and is also registered for VAT Reg GB629471517 FSA Registration number is 202628 HSB Engineering Insurance Ltd is registered as a Limited Company Reg 02396114 and is also registered for VAT Reg GB6526422 FSA registration number is 202738 Financial amp Econ
75. rect with Framework Users and or are happy to deal via any FSA registered insurance brokers appointed by individual Framework Users to assist them with evaluating call off arrangements from appointed insurers This response gives maximum choice and flexibility to Framework Users over the question of whether to retain an insurance broker adviser or deal direct with insurers once the call off contracts are awarded Their client list includes a number of universities colleges schools and local authorities and they have cited Wolverhampton City Council and Birmingham City Council as clients RSA have a stated commitment to continuous improvement and the cost management of claims Service Standards Discounts and Cover RSA Engineering have confirmed that they will offer no volume discounts for the supply of engineering inspection services although they have confirmed that they will offer premium discounts in return for long term agreements However LTA discounts are offered by all insurers so this is not seen as any specific incentive for framework users RSA Engineering have confirmed that they intend to respond to each and every request for a quotation and may consider offering wider cover or flexible premium payment arrangements under call off arrangements for individual authorities However each will be considered on its individual merits so this is not a specific benefit generated by the existence of the framework The example LTA wo
76. rently purchase Travel Insurance If so please just note the section as NOT REQUIRED within Additional Information Where cover is required please detail the Benefits currently in force by completing the table Benefits H Item Section Sum Currently In Additionally Force Required Overseas Medical Expenses and Emergency Repatriation Expenses and _ Travel Expenses Excess Personal Property Single Article Limit Delayed Personal Property Loss of Travel Documents Loss of keys Money Cash Limit Cancellation Curtailment and Rearrangement Expenses 44 Travel Delay oo N D oO Ww hy o 12 Excess 13 Kidnap and Hijack Benefit 14 Kidnap and Extortion Coverage 15 Personal Liability any one event 16 Legal Expenses 17 Rental Vehicle Excess 18 Political or Natural Disaster o In order to provide a quotation details of your anticipated Travel Pattern for the next 12 months is required If this is unknown you may wish to provide the previous years please note this within the Additional Information box Travel Pattern Based unon the number of person days For example 3 persons visiting the USA for 10 days would be noted as 30 person days within the USA _ Location Estimated Person Days UK ee Europe USA Canada E Rest Of The World 7 55 LOT 5 FINANCIAL LOSS INSURANCE Lot 5 Financial Los
77. rity Details that would normally be included would be e Area of Authority square miles e Key Locations included within the Area e Annual Revenue Budgets e Key Priorities You may wish to include Corporate Plans or similar and these can be referred to being included within the Appendices Instructions to Tenderers Please include any specific requirements regarding the tender such as where the tenders should be returned to what should be written on the tender envelope etc We have included boxes to identify the number of copies of the submission and whether an electronic copy usually a CD is required Contact Details Please include the details of the person within the Council who is managing the exercise This could be the Insurance Manager Risk Manager Procurement Manager etc In addition if you have sought independent professional advice please also include their details We would recommend that you also identify who is to be the primary contact This will ensure that all communication is directed to a single person Timetable We have included an example Timetable You are free to amend this to meet your requirements but in order to meet the minimum standards for the Framework you MUST provide a minimum of 27 calendar days from the issue of the Tender Documents through to the submission of the quotations 40 We have also included opportunities for Meetings with Tenderers during the process This is entirely vo
78. rk which governs their business and the work of their internal Compliance Unit which monitors quality and compliance issues within the company In addition their internal audit team monitor and report on internal controls and risk management within the company Allianz are accredited as a SafeContractor and also accredited to BS EN ISO IEC 17020 as a Type A Inspection Body by UKAS and have provided copy certificates as evidence Service Delivery Allianz have indicated that they are prepared to deal direct with any local authority via the framework or will transact business via the agency of any FSA registered broker with whom they have a Terms of Business Agreement We are confident that this arrangement will extend to all of the brokers who operate specialist Public Sector Teams so this will not in any way be a restrictive or unacceptable practice for the Framework users Allianz has provided a list of 250 public sector organisations for whom it has provided insurance cover Service Standards Discounts and Cover Allianz have confirmed that they intend to respond to every request for a quotation They have qualified their answer by stating that should they find themselves under resourced in a specific area then their quotation for inspection services would reflect any additional costs of transporting engineer surveyors in to the area Allianz have offered a table of discounts to be applied to all policies if premium volumes via the
79. rs or Visitors Public Authorities Clause including undamaged portions 72 Hours Clause Temporary Removal of Deeds Theft Damage to Buildings Workmens Clause Deletion of Average OTHER We have noted where Limits would usually apply by virtue of a Pound symbol This should represent the current basis of cover Please mark the Conditions Extensions Currently In Force with an X in the relevant box and either an X or the higher limit required in the Additional Required box Please add any additional clauses using the OTHER box and by adding additional rows to the bottom of the table Deletion of Average This clause will not be given automatically by Insurers but is something for Members to consider and may form part of your scoring criteria The deletion of this clause will reduce the potential of Insurers applying contributions for under insurance of sums insured This is not meant to allow Members to under insure but does protect you from the application of the clause due to an error 45 Additional Information This box should be used to list any other matters to highlight to Insurers For example e Which categories the Cross Class Aggregate applies to e Details of any Non Ranking excesses currently applying and which perils items they apply to e Any Alternative options required e Any Material Facts that must be declared to Insurers e First Loss limits applying Full Property schedules are to be included within the A
80. rs with sufficient timescale for underwriting or fails to provide the required information in the tender document Failure by an insurer to respond to all quotations in the absence of a permitted exception will lead to a review of the framework status by South West Councils who reserve the right to remove an insurer from the framework Alternative Options Consortium members and eligible authorities are not contractually bound to use the Framework but if they elect not to do so they will need to tender their insurance requirements in isolation and in accordance with the public procurement legislation In view of the saving in procurement time and anticipated benefits offered by insurers appointed to the Framework a high usage of the Framework is expected Consortium members using the Framework may elect to obtain specialised covers such as Marine or Aviation risks from outside the Framework if there are insufficient insurers qualifying for these Lots but this option is likely to exercised relatively rarely Insurer Commission In the event that an insurer appointed to the Framework requires cover to be placed through the agency of an FSA registered insurance broker appointed by an individual Framework User it is accepted that a commission of not more than 2 5 may be paid by the insurer to the appointed broker as compensation for work undertaken by the broker on behalf of the insurer Any such payments are to be declared to the Framework User upon
81. s Insurance Fidelity Guarantee Please complete details of your current insurance coverage Some Members may have a Limit applying to All Employees others may have specified persons with individual limits and a remaining limit for All Other Employees Please details your basis of cover within this table Limit Of Indemnity Alternative Required Item Persons Insured Sum Conditions Extensions Please note that the reference to including systems of check relates to Framework Tenderers not a requirement for this to be provided by Members 56 LOT 6 LEGAL EXPENSES INSURANCE Lot 6 Legal Expenses Insurance Members may or may not currently purchase this coverage If you do not currently purchase this but require a quote please note this within the Additional Information box If cover or a quotation is required please provide complete the section fully The Sections of Cover Limits Excesses highlights the usual areas of cover purchased Please note that your current basis of cover may not include all of these sections Contract Disputes in particular is an expensive area of insurance This section may be used to consider alternative areas of Legal Expenses insurance such as Members Legal Expenses Should this be required please ignore items 1 7 and amend one of the spare rows to meet such requirements Sections of Cover Limits Excesses Item Section Limit Excess se sae
82. s and KPIs relating to the response to quotations issuing of policy documents mid term adjustment of cover and provision of renewal terms Aviva have indicated that they intend to develop the scope of their cover for Framework users over time but have specifically offered a number of cover enhancements from day one Specifically they have offered to provide free of charge Property e Waiver of average clause subject to property valuations being carried out every two years This is a useful improvement although we do need to find out more detail around the valuation requirement 72 hour clause Contract Works extension 500 000 limit Capital additions with 2 500 000 limit Full theft cover Temporary removal reinstatement of documents deeds with 500 000 limit Landscape costs with 25 000 limit Involuntary betterment for computer equipment Change of locks with 5 000 limit Theft collusion Frozen Food 5 000 limit per premises Goods in Transit cover up to 100 000 annual value Liability Terrorism cover with 5m limit of liability Cover for corporate manslaughter Cover for claims actions brought under the Data Protection Act Cover for claims actions brought under the Consumer Protection Act Motor Uninsured Loss Recovery Access to Roadsense risk management website Inclusion of Fleet Risk Adviser to meet with authority to review discuss fleet risk controls Waiver of young inexperienced driver excess Cover
83. s handlers are also required to indicate to what extent disbursements and other charges are excluded from the fees quoted Quality of Service and Service Standards Weighting 60 Authorities will rely upon submissions from insurers claims handlers to the Framework Tender for an overview of service and service standards to be provided and Claims handlers are only required to add additional detail that they wish to propose to the individual Authority In particular please confirm required to set out their service standards quality measures and KPIs that apply to this service 33 Claims handlers must be able to demonstrate their expertise in providing claims handling services to public sector organisations and confirm their commitment to the public sector In addition applicants should provide details of the service team the resources to be allocated to the Authority and location for where the team is based Service providers should indicate how their expertise will be applied for the benefit of the Authority Each Insurer Contract Award criteria has a different weighting as indicated above and each insurer response will be marked on a range of 0 to 5 as detailed in the table below 0 Unacceptable No response or totally unacceptable and does not meet the requirement in any way 1 Inadequate Substantially unacceptable and does not meet the Consortium s expectations in some significant areas Considerable reservations of
84. sis but insurers must clearly indicate any aspect of their quotation which does not comply with the mini competition tender document Range of Services Weighting 10 The Council will give consideration to the inclusion of services from a single provider such as claims handling loss control services surveys risk management days included within the premiums quoted and to the provision of any additional services at specified daily rates Expertise Weighting 10 All insurers must demonstrate how they will use their expertise in tersm of the public sector claims handling and other technical areas for the benefit of the Council 2 Claims Handling and provision of claims data This section forms part of the Contract Award Criteria and will be applied irrespective of whether claims handling is provided by the insurer within premiums quoted or whether a separate claims handler provides the service and or a separate fee is payable Price Weighting 40 This is an evaluation of the total cost of the service to the Authority Claims handlers must indicate the total cost of the service and confirm whether cost is within premium terms or if an additional charge will be made If additional charges apply please indicate the price paid for claims handling and degree of financial certainty Cost per claim to extinction or annual cost of handling Evaluation will seek to identify the total cost where fees are adjustable on claim numbers Claim
85. specific requirements of individual local authorities 13 Claims handling costs are included within the insurers premium rates and details of quality standards have been provided Service Delivery Travelers have indicated that they would prefer to deal via an appointed broker but will deal direct with individual local authorities if that is the requirement of the tendering authority This response represents maximum flexibility for the individual Framework User by either allowing dealing direct with local authorities or by dealing with any of the recognised specialist public sector brokers in the marketplace Travelers have confirmed that they write cover for over 100 UK local authorities and will provide references from their local authority clients to individual Framework Users if required to do so Service Standards Discounts and Cover Travelers have confirmed that they intend to respond to every request for a quotation although they have declined to offer Environmental Liability or Cyber risk insurance as part of a standard wording This is in line with the insurance market as a whole The response relating to service standards and KPIs that would apply and be monitored in respect of underwriting activity and policy issue is extremely comprehensive Travelers have indicated that their policy wordings for UK local authorities already offer a number of extensions to standard market policy cover They also offer a number of policy
86. surance brokers to collect premiums on their behalf provide credit control premium accounting and to perform a role in the policy issue process which is critical to their FSA authorisation and approved business processes Their application refers to their history of working with national brokers and of providing insurance cover for District Councils We are confident that this arrangement will extend to all of the brokers who operate specialist Public Sector Teams so this will not in any way be a restrictive or unacceptable practice for the Framework users 19 They have referred to the activities of legacy companies such as General Accident Commercial Union and Norwich Union and specifically to cover written for Registered Social Landlords Housing Associations and Parish District and non Metropolitan Borough Councils over recent decades Service Standards Discounts and Cover Aviva have confirmed that they intend to respond to every request for a quotation provided that sufficient time and sufficient information is provided by Framework users for the insurer to underwrite the risk Aviva have also inserted a caveat that in the unlikely event that a specific risk falls outside of their reinsurance treaty and they cannot arrange alternative reinsurance or falls outside of their risk appetite they may need to decline to quote but will endeavour to provide a full explanation in such circumstances Aviva have set out four key service standard
87. the event that the expected loss ratio threshold is exceeded However Aviva have not specified the actual rate of discount to be allowed under these options so it is difficult at this stage to assess how valuable they are It does however show that the insurer is trying to be flexible and offer options that are valued by Framework users Aviva have offered the option of long term agreements or Rate Stability Agreements to Framework users LTAs will be offered as standard for three years with consideration given to providing 5 year LTA proposals on a case by case basis The rate stability agreements will be offered on the basis of a two year agreement which will guarantee holding premium rates during this period provided that loss ratio does not exceed 60 and there is no significant change in market practice or risk exposure Aviva are offering a wide range of additional services to Framework users including surveys of properties for valuation and risk control purposes within premium costs The insurer also has a list of preferred suppliers who provide a range of security and safety services The suppliers will offer discounts and Aviva will make these available to their customers including their policyholders via the Framework Aviva will also offer training schemes and a discounted RAC breakdown cover for both motor fleet applications and for the staff of local authorities using the Framework Aviva are also keen to offer discounts on Travel insu
88. tside of it Yes In the event that an authority has an insurance requirement which is not covered by the Lots listed in the Framework the authority can tender for that risk outside of the framework but still use the framework to obtain quotations for the main insurance programme Is my authority able to vary the Contract Award Criteria shown in the User Guide and ITT documents All framework users are required to award contracts on the basis of MEAT criteria split between a 40 weighting on price and 60 weighting on non price or quality criteria However individual authorities are required to specify their own sub criteria within the two main headings and can allocate sub criteria weightings to suit their own requirements When my authority awards a contract under call off arrangements under the framework do we need to observe the standstill period and publish a contract notice 67 Yes Although legal opinion on this point is divided due to the results of the framework appointments having been subject to a standstill period an undertaking was given to insurers in the framework tender that a standstill period would apply to each call off arrangement Failure to observe this requirement would mean that the framework is non complaint with the rules set at the outset of the exercise What will happen at the end of the four year framework period On the assumption that the framework continues to demonstrate the same level of success as
89. uation Ashore or Afloat at Items Insured Sum Insured Damage Cover Liability Cover Item Description Required Y N Required Y N 1 Schedule of Craft Excess Item Description Sum 1 Excess each and every loss Conditions Extensions Condition Extension Currentiy In Additionally Force Required Third Party Liability Water Skiers Liability The Conditions Extensions for such policies are bespoke therefore we would recommend that you carefully review with your professional advisers the conditions and extensions required 59 LOT 9 PROFESSIONAL LIABILITY INSURANCE Lot 9 Professional Liability Insurance Professional Indemnity Professional Negligence Whilst this section should be completed to provide overall details of the services undertaken we would recommend that either a new proposal form is completed for each service and included within the Appendices or as a minimum the previous years form is included Limits Item Description of Services Estimates Limits Excesses Run Off Only Required Y N Limit of Indemnity Estimated Annual Item Fees Excess WwW N gt Retroactive Date Conditions Extensions ae paar Currently In Additionally Indemnity for former Employees and Consultants Infringement of Copyright or Patents The Retroactive Date may vary if there is more than one area of service If so please add multiple rows to
90. usiness continuity planning We do not expect all of these services to be of interest to all Framework users but the insurer does offer an impressive range of additional services if required Aviva Insurance UK Ltd Aviva Insurance UK Ltd is registered in the UK as a Private Limited Company Reg 99122 and is also registered for VAT Reg 105437300 FSA Registration number is 202280 18 Financial amp Economic Standing Aviva have a current Standard amp Poors Rating of AA which is significantly in excess of the minimum standard of A set for liability long tail risk classes and of the minimum of BBB rating required for the property risk or shorter tail insurance exposures Aviva Insurance UK Ltd is owned by Aviva Plc which is the world s fifth largest insurance group The RAC is another company within the Aviva group of companies Aviva have not offered a parent company guarantee emphasising that their experience scale of operation and financial strength render this unnecessary We take the view that in view of the size of the company and their financial strength this is an acceptable position Aviva have 46 offices located throughout the UK which gives the insurer the ability to provide a local service if the Framework is widely used and a full list has been provided on CD Rom The insurer will co ordinate responses from London via their London National Broker Trading Team which is a unit of 28 people Technical Capability The
91. y One Inflation Protection basis The Declared Value is the figure provided by the Council to apply on the first day of the insurance contract The Sum Insured would usually be 15 higher to reflect potential inflationary uplifts between the date of placement of insurance and the date the building may be rebuilt repaired 43 On the following page you can indicate what percentage of Day One uplift is actually required Basis of Valuation Buildings and Contents are insured on a Day 1 Non Adjustable Reinstatement basis of claims settlement where noted within the Sums Insured Table This automatically provides for an inflation uplift factor of the Declared Values at inception Situation Any premises owned leased occupied utilised or in the custody or contr of the Insured for which they are responsible whilst in transit in between and whilst stored in the open at such premises anywhere in the Great Britain Northern Ireland the Isle of Man or Channel Islands Excess Basis of Excess Per Event Per Property Quotations are required on the Basis of Per Event Per Property Both Options Excess Sum C Fire Lightning Aircraft Explosion Riot Civil Strikers Locked Out P Commotion Workers Malicious Damage Earthquake Subterranean Fire Storm Flood Escape Of Water Impact by Vehicle Impact by Animal Sprinkler Leakage Subsidence Theft Full Theft Accidental Damage OR Aggregate The Current Aggregate applying is This
92. yond the first wave of district councils that required cover to be placed by 1 October 2010 Individual framework users are free to use whichever insurance broker they wish to appoint to act for them although it is recommended that a broker with public sector experience is used and authorities must use an insurance broker who 65 have a current agency agreement with all of the insurers on the Insurance Framework A summary of insurer comments about the acceptable brokers are included in the Framework User Guide Is there any cost to me in using the South West Councils Framework Agreement There is an administrative charge of 200 payable to Teignbridge District Council as a contribution towards the administration of the Framework and towards the cost of processing the application Must I use the tender document template provide in the information pack Yes One of the arguments for attracting insurers to the Framework was the undertaking to present tender information to them in a consistent format However there is no problem with individual authorities adding detail to the documents in order to provide further relevant risk information Please explain the reference to commission payments in the User Guide and Invitation to Tender documents It is accepted that insurance brokers provide a number of services for insurers which the insurers themselves are not resourced to do Examples include premium collection credit control and

Download Pdf Manuals

Related Search

Related Contents

Le Focke-Wulf 190A  Singer 5400  MANUAL DE USUARIO - Componentes para automatismos  Manual del usuario  62 - Clio Club Argentina  Omega OMNCPIG notebook cooling pad  

Copyright © All rights reserved. Failed to retrieve file