Savings for the Nation Insurance Services Framework Agreement – RM958 Improvement and Efficiency West Midlands Insurance Showcasing event 15 th March /10/20141

Savings for the Nation 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 11/10/20142

Savings for the Nation Welcome and Introductions 11/10/20143

Savings for the Nation 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) 11/10/20144

Savings for the Nation 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 /10/20145

Savings for the Nation 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 11/10/20146

Savings for the Nation 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) 11/10/20147

Savings for the Nation 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) 11/10/20148

Savings for the Nation GPS & Pro5 Partnership 11/10/20149 Background Memorandum of Understanding (MoU) Removal of duplication Efficiencies and efficiency savings Ease of use for Customers Access to customers

Savings for the Nation Roles and Responsibilities 11/10/ 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 uptake sessions with customers, and the provision of procurement advice and guidance

Savings for the Nation Market Engagement & Procurement Background 11/10/201411

Savings for the Nation 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 11/10/201412

Savings for the Nation 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 11/10/201413

Savings for the Nation Procurement Background Open procedure utilised Open to any public sector body within the UK from Academies to County Councils Framework duration (years) Estimated OJEU spend £850m 11/10/201414

Savings for the Nation Framework Overview 11/10/201415

Savings for the Nation 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 11/10/201416

Savings for the Nation 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 11/10/201417

Savings for the Nation Main Headings of Insurance and Insurance Brokerage Liability Property & Construction Travel & Personal Accident Motor General Specialist 11/10/201418

Savings for the Nation Lot Overview and Call Off Process 11/10/201419

Savings for the Nation 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 11/10/201420

Savings for the Nation Call Off Processes The image below shows the different ways in which a customer can call off via the Framework Agreement: 11/10/201421

Savings for the Nation 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, s, other procurement routes). 11/10/201422

Savings for the Nation 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. 11/10/201423

Savings for the Nation 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 you their requirements, quoting the Framework Agreement reference number of RM /10/201424

Savings for the Nation 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, s, 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. 11/10/201425

Savings for the Nation 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. 11/10/201426

Savings for the Nation Framework Specifications and Call Off Contracts Specification 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 claim 27

Savings for the Nation 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 11/10/201428

Savings for the Nation eSourcing Suite Training Training plan for 2013 on the eSourcing Suite for the further competition process 11/10/201429

Savings for the Nation Guidance Pack & Next Steps 11/10/201430

Savings for the Nation Guidance Pack Toolkit Guidance Supplier matrix Non-Disclosure Agreement Decision tree matrix Further competition templates Call-off templates 11/10/201431

Savings for the Nation Next Steps 1:1 meetings Case studies Regular communication 11/10/201432

Savings for the Nation Question & Answers 11/10/201433

Savings for the Nation Contact Information 11/10/ Government Procurement Service Jade Rawlinson and David Pyle / ESPO Richard Skelton

Savings for the Nation Annex 1 Framework Agreement Suppliers 11/10/201435

Savings for the Nation Lot 1 – Insurance Services ACE European Group AIG Europe Limited Allianz Insurance PLC Amlin UK Ltd Aspen Insurance UK LTD Assuranceforeningen Gard – gjensidig 11/10/ AXA Art Insurance Limited Barbon Insurance Group Catlin Underwriting Chubb Insurance Company of Europe SE Ecclesiastical Insurance Office Gard Marine & Energy Försäkring AB

Savings for the Nation Lot 1 – Insurance Services Continued Groupama Insurance Company Ltd Groves John & Westrup Ltd Hiscox International Transport Intermediaries Club Ltd JLT Public Sector Risk Practice 11/10/ Mitsui Sumitomo Insurance Underwriting at Lloyd’s Ltd Motor Accident Protection Services Ltd Northern Marine Underwriters Ltd Ocaso SA Seguros y Reaseguros

Savings for the Nation Lot 1 – Insurance Services Continued QBE Insurance Ltd Risk Management Partners Limited Royal & Sun Alliance Insurance plc Summit Insurance Services Ltd 11/10/ The Shipowners Mutual Protection and Indemnity Association (Luxembourg) Thistle Insurance Services Ltd Tokio Marine Europe Insurance Co Ltd Travelers Insurance Company Limited

Savings for the Nation Lot 1 – Insurance Services Continued TT Club Mutual Insurance Limited Zurich Insurance plc 11/10/201439

Savings for the Nation 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 11/10/ Lockton Companies LLP Marsh Ltd Portmore Insurance Brokers Ltd Thistle Insurance Services Ltd Willis LTD

Savings for the Nation Lot 3 – Single Sourced Insurance Brokerage AON UK Limited 11/10/201441