Insurance Strategy and Procurement

A three-year Insurance Strategy was agreed by the Deputy Mayor for Policing and Crime in July 2016. Under the Scheme of Delegation and Consent there is a requirement to annually approve the insurance strategy to ensure it remains fit for purpose. Approval for the tendering and award of contracts for motor insurance and property construction all risks insurance policies which need renewing is requested.

The DMPC is asked to approve;

1. the Insurance Strategy

2. the proposals to initiate procurement and award contracts for insurance for motor, and property construction all risks

1. Introduction and background

1.1. The MOPAC insurance strategy was approved in July 2016. This is a three-year strategy with MOPAC/MPS currently in year two. As part of the approval process the MPS is required to review the insurance strategy on an annual basis to ensure it is still fit for purpose. The Scheme of Delegation and Consent requires the Deputy Mayor for Policing and Crime to review the insurance strategy on an annual basis.



1.2. The use of insurance enables the MPS to transfer the financial risk of uninsured damage to property and uninsured legal claims for general liability to an insurance company, thus avoiding the need to fund this cost from the MPS’s own resources.

1.3. As part of the strategy there are regular requests for the procurement of insurance.

2. Issues for consideration

2.1. The MPS is exposed to certain insurable financial risks that are large enough to be prejudicial to the execution of the Police and Crime Plan. An example would be the risk of destruction of a major building within the Estate through fire.

2.2. The current insurance policies which are the subject of this procurement request cover motor insurance and property construction all risks.

2.3. See attached and the Part 2 for further details.

3. Financial Comments

3.1. The cost of the insurance renewals is provided for within existing resources.

4. Legal Comments

4.1. The MOPAC Scheme of Consent and Delegation (4.7) requires the approval of the annual insurance strategy. As the value of the proposed procurements are in excess of £500,000 MOPAC approval [SoC&D 4.13] is required.

4.2. Procurement activity arising from approving the application of the existing Insurance Strategy will be conducted in accordance with the Public Contract Regulations 2015, EU law and MOPAC Scheme of Consent and Delegation.

5. Equality Comments

5.1. There are no direct equality or diversity implications arising from this report

6. Background/supporting papers

6.1. MPS paper