insurance services framework agreement – rm958

Savings for the Nation

Insurance Services Framework Agreement – RM958

Improvement and Efficiency West Midlands

Insurance Showcasing event

15th March 2013

04/21/23 1


Agenda

• Introductions to GPS, ESPO and Pro5

• Market Engagement and Procurement Background

• Framework Overview

• Lot Overview & Call Off Process

• Guidance Pack

• Next Steps

• Questions and Answers

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Welcome and Introductions

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Government Procurement Service• Play a key role in the delivery of the centralised procurement strategy, providing

significant and sustainable savings for the taxpayer through centralised sourcing,

category and data management.

• GPS work closely with senior stakeholders in Central Government Departments

and across the public sector, implementing policy to deliver savings and drive

efficiency

• 2011/12 GPS managed £8.4bn of public sector spend and delivered combined

price and demand savings of £759m (excluding consultancy & contingent labour

(CCL) demand)

• http://gps.cabinetoffice.gov.uk

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Eastern Shires Purchasing Organisation (ESPO)

We are………..

One of the largest local authority buying consortia in the UK

Publicly owned by a joint committee of seven Local Authorities

Operate on a not for profit/self financing basis

Our goals are to……….

To facilitate the supply of goods and services to schools and other public sector bodies throughout the UK cost effectively

To maximise buying power and value for money by collaborating where appropriate

To make it easy for our customers to comply with public procurement rules http://www.espo.org/

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ESPO Experience of Insurance Purchasing• OJEU processes (time and cost implications)

• Usually ‘open’ procedure

• Project group approach

• Single authority or small collaboration

• Whose T’s and C’s?

• Interest usually from the direct insurance market

• Usually one or two bids

• Missed opportunities

• Outcomes depended on……..

• The starting point

• The cyclical nature of the insurance market

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Pro5• The Pro5 group represents the four largest professional buying

organisations in the UK and is committed to producing leading frameworks to benefit the whole of local government, with a combined spend of over £2bn per annum.

• The Pro5 group are:

o Central Buying Consortium (CBC)

o Eastern Shires Purchasing Organisation (ESPO)

o North East Procurement Organisation (NEPO)

o Yorkshire Purchasing Organisation (YPO)

http://www.pro5.org/

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Pro5 Working Together• Fleet – Purchase of electric vehicles (20)

• Business services – Staff benefits (319)

• Education - Outdoor play equipment (115)

• Energy – Voltage reduction/optimisation (438)

• Facilities Management – Washroom services (239)

• Food – Catering services (704)

• Furniture - Kitchen units, worktops and sink units (99)

• Social care – Electronic home monitoring/scheduling (394)

http://www.pro5.org/

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GPS & Pro5 Partnership

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• Background

• Memorandum of Understanding (MoU)

• Removal of duplication

• Efficiencies and efficiency savings

• Ease of use for Customers

• Access to customers


Roles and Responsibilities

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GPS

• Contracting Authority• Overall management of suppliers and supplier relationship Management SRM process• Key role with marketing and communications for GPS customers, as well as provision of procurement advice and guidance• Lead in the data management of the Framework Agreement

Pro5

• Supported on the procurement exercise, developing tender documentation and participating in the evaluation process• Provide expertise in on boarding of new customers, particularly from member authorities• Key role in the marketing and communications to customers,

running events and 1-2-1 uptake sessions with customers, and the provision of procurement advice and guidance


Market Engagement & Procurement Background

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Market Engagement• Prior Information Notice issued April 2012

• Insurers and Insurance Brokers

• Support service providers

• All suppliers received the same presentation/message

• Suppliers provided comments on lotting strategy, Terms and Conditions and specifications

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Stakeholder Engagement• Varied and well established stakeholder group assisting the project

with representation from Councils, Police, Fire to Central Government

• Managed by the partners

• Consultation on specification on key elements e.g. Specification and evaluation scheme

• Participation in tender evaluation

• Updated on project progress by partners

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Procurement Background

• Open procedure utilised

• Open to any public sector body within the UK from Academies to County

Councils

• Framework duration (years) 2 + 1 + 1

• Estimated OJEU spend £850m

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Framework Overview

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Framework Overview• Go live 25 February 2013

• Call Off contracts specific to insurance category

• Customer can deal direct with insurer or via a broker

• Ability for insurers to decline to quote

• Standard documentation (market presentation ,claims reports and confirmed claims experience)

• Support services

• Framework agreement reference RM958

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Framework Overview Continued

• Long term agreements up to 5 years

• eAuction used to conclude lot 3 (single supplier insurance brokerage)

• eAuctioned enabled for further competitions

• Up to 30 June 2013 any broker can access the insurers on lot 1. After

this date the lot 2 and lot 3 brokers will be the only brokers that can

access the lot 1 insurers

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Main Headings of Insurance and Insurance Brokerage

• Liability

• Property & Construction

• Travel & Personal Accident

• Motor

• General

• Specialist

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Lot Overview and Call Off Process

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Lot Overview

• Lot 1 – insurance services – 31 suppliers

• Lot 2 – multi supplier insurance brokerage – 11 suppliers

• Lot 3 – single sourced insurance brokerage – 1 supplier

See Annex 1 for list of suppliers

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Call Off Processes• The image below shows the different ways in which a customer can call

off via the Framework Agreement:

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Lot 1 Call Off Process – Further Competition• Further Competition, or through a Framework broker.

• When running a further competition, customers will specify their

requirement and ask for a policy quote.

• Price 40% and Quality 60% (percentages can be varied up to 30% +ve

and –ve).

• Insurers are able to decline to quote.

• Procurement processes (eSourcing suite, emails, other procurement

routes).

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Lot 1 Call Off Process – via a Broker

• If a Customer intends to use a framework broker, the broker will be

appointed prior to insurers being approached to quote.

• Brokers will conduct business with insurers on the framework agreement

using standard business processes. However brokers must provide the

information to all capable insurers (including direct) that have stated they

can provide the particular class of insurance.

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Lot 2 - Call Off Process – Direct Award

• Further Competition, or through a Direct Award.

• Customers wishing to procure a broker on Lot 2 via Direct Award must be

able to demonstrate that this is delivering value for money.

• Tendered prices must be used (i.e. there is no scope for a broker to lower

prices to ensure business if a customer is using the Direct Award

approach).

• To direct award, customers will simply email you their requirements,

quoting the Framework Agreement reference number of RM958.

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Lot 2 - Call Off Process – Further Competition• If procuring a broker via Lot 2 using a Further Competition, a customer will

develop all Tender documentation, and send out to all capable brokers.

• Procurement processes (i.e. eSourcing suite, emails, other procurement routes)

• Price 30% and Quality 70% (percentages can be varied up to 30% +ve and –ve).

• Customer can define different pricing models if running a further competition (i.e. annual rate, per instead of a daily rate) if they wish.

• Brokers can lower prices at Further Competition stage if they wish.

• Once appointed, the broker will support the Customer, and approach the insurers on Lot 1, as per normal business practices.

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Lot 3 - Call Off Process – Direct Award

• A Customer can only call off Lot 3 (single supplier insurance brokerage)

via a Direct Award.

• The customer will contact Aon UK Ltd with their requirements.

• Aon UK Ltd will then support the customer, and approach the insurers on

Lot 1, as per normal business practices.

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Framework Specifications and Call Off ContractsSpecification key points:

• Market presentation

• Support services

• The Insurer must provide complete and accurate policy documentation by the policy start date or within 30 calendar days of inception of the Policy

• Claims reports to be sent no later than 90 days prior to expire of current period or within 30 days of a customer request

claim27


Framework Specifications and Call Off Contracts

• Specification key points continued:

• Confirmed claims experience for live contracts to be sent no later

than 60 days prior to expiry date

• Call off contract process

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eSourcing Suite Training

• Training plan for 2013 on the eSourcing Suite for the further competition

process

http://gps.cabinetoffice.gov.uk/news/esourcing-suite-training-new-dates-added

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Guidance Pack & Next Steps

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Guidance Pack

• Toolkit Guidance

• Supplier matrix

• Non-Disclosure Agreement

• Decision tree matrix

• Further competition templates

• Call-off templates

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Next Steps

• 1:1 meetings

• Case studies

• Regular communication

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Question & Answers

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Contact Information

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Government Procurement Service

Jade Rawlinson and David Pyle

0151 672 2348 / 2164

[email protected]

http://gps.cabinetoffice.gov.uk/contracts/rm958

ESPO

Richard Skelton

0116 294 4010

[email protected]

http://www.espodealingdirect.org/


Annex 1

Framework Agreement Suppliers

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Lot 1 – Insurance Services

• ACE European Group

• AIG Europe Limited

• Allianz Insurance PLC

• Amlin UK Ltd

• Aspen Insurance UK LTD

• Assuranceforeningen Gard –

gjensidig

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• AXA Art Insurance Limited

• Barbon Insurance Group

• Catlin Underwriting

• Chubb Insurance Company of

Europe SE

• Ecclesiastical Insurance Office

• Gard Marine & Energy

Försäkring AB


Lot 1 – Insurance Services Continued

• Groupama Insurance

Company Ltd

• Groves John & Westrup Ltd

• Hiscox

• International Transport

Intermediaries Club Ltd

• JLT Public Sector Risk

Practice

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• Mitsui Sumitomo Insurance

Underwriting at Lloyd’s Ltd

• Motor Accident Protection

Services Ltd

• Northern Marine Underwriters

Ltd

• Ocaso SA Seguros y

Reaseguros



• QBE Insurance Ltd

• Risk Management Partners

Limited

• Royal & Sun Alliance

Insurance plc

• Summit Insurance Services Ltd

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• The Shipowners Mutual

Protection and Indemnity

Association (Luxembourg)

• Thistle Insurance Services Ltd

• Tokio Marine Europe Insurance

Co Ltd

• Travelers Insurance Company

Limited



• TT Club Mutual Insurance Limited

• Zurich Insurance plc

04/21/23 39


Lot 2 – Multi Supplier Insurance Brokerage

• Aon UK Limited

• Barbon Insurance Group

• Brian Johnston & Co (Insurance Brokers) Ltd

• Gallagher Heath trading as Heath Lambert

• Griffiths & Armour

• JLT Public Sector Risk Practice

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• Lockton Companies LLP

• Marsh Ltd

• Portmore Insurance Brokers

Ltd

• Thistle Insurance Services Ltd

• Willis LTD


Lot 3 – Single Sourced Insurance Brokerage

• AON UK Limited

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insurance services framework agreement – rm958

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