South East Alarm Seminar 2005 OJEC Notices and Tendering Julia Reffell – JLT Public Sector Risks

Jardine Lloyd Thompson Insurance Broking Division Introduction  Julia Reffell - Account Executive Jardine Lloyd Thompson Public Sector Risks

Jardine Lloyd Thompson Insurance Broking Division Agenda/Objectives  The intention of Directive 92/5O/EEC  OJEC and Insurance  Type of Procedure  Timetable  Review of Cover  Options  Evaluation  Conclusion  What we have covered  Questions

Jardine Lloyd Thompson Insurance Broking Division The intention of Directive 92/50/EEC  Community wide advertising of contracts so that firms in all member states have an opportunity of bidding for them.  The banning of technical specifications liable to discriminate against potential foreign bidders.  Application of objective criteria in tendering and award procedures.

Jardine Lloyd Thompson Insurance Broking Division OJEC and Insurance  Insurance is subject to all the provisions of the Directive.  ProcedurePIN – Prior Information Notice Contract Notice (3 types of procedure) Contract Award Notice  Common Procurement Vocabulary – 3 Insurance and Pension Services, except compulsory social security services.

Jardine Lloyd Thompson Insurance Broking Division OJEC and Insurance  Lots – 3 Insurance and Pension Service – 0 Insurance services relating to transport – 1 Motor Vehicle Insurance Services – 1 Liability Insurance Services – 2 Motor vehicle liability insurance services

Jardine Lloyd Thompson Insurance Broking Division OJEC and Insurance  Value Threshold – 200,000 ECU 750,000 ECU  Method of Calculation of the Contract Valve  Splitting Contracts

Jardine Lloyd Thompson Insurance Broking Division Type of Procedure  OJEC changing in 2006  Contract Notice Open Procedure – 52 days for receipt of tenders. Restricted Procedure – 37 days for receipt of requests to participate 40 days for receipt of tenders. Negotiated procedure – 37 days for the receipt of requests to participate.

Jardine Lloyd Thompson Insurance Broking Division Timetable  It takes longer than you think!  For 1 st April renewals you should have started October/November 2004  Having a timetable will help to make sure you don’t run out of time  Allow ‘slippage’ time  Work backwards  Example

Jardine Lloyd Thompson Insurance Broking Division Timetable  Renewal 1 st April 2005  Absolute deadline for making a decision – 31 st March Ideally you would prefer not to be making decisions this late in the day!  Remember Easter – March 2005

Jardine Lloyd Thompson Insurance Broking Division Timetable  Do you need Committee Approval?  Dates of Committee Meetings  If Committee Meeting is 18 th March – how long before do you need to submit report?  Say one week – 11 th March  Whether you are doing evaluation yourself or a broker is doing this, allow 2 weeks – 25 th February  Usually allow a minimum of three weeks for Insurers to quote, but at this busy time of year, allow four if you can – 28 th January

Jardine Lloyd Thompson Insurance Broking Division Timetable  Contract Notice – if Negotiated Procedure used, 37 days – 23 December  PIN – should allow minimum 52 days before publication of Contract Notice – 2 November  So your timetable will look something like this:-

Jardine Lloyd Thompson Insurance Broking Division Timetable  2 November 2004 – Issue PIN  23 December 2004 – Issue Contract Notice  28 January 2005 – Issue Tender  25 February 2005 – Tenders Returned  11 March 2005 – Report to Cabinet  18 March 2005 – Cabinet Meeting

Jardine Lloyd Thompson Insurance Broking Division Timetable  These are the ‘key’ dates  In addition, you have to consider the following:-  Cover Reviews  Gathering of Information required for the Tender  Implications of a change of Program/Insurer  These need to be completed before you can issue the tender document

Jardine Lloyd Thompson Insurance Broking Division Review of Cover  Ideal time to review insurance cover  Look at what is covered and why  Look at excess levels  Look at aggregate levels  Look at claims handling arrangements

Jardine Lloyd Thompson Insurance Broking Division Options  Have well considered options.  The more options you have the more difficult the tender evaluation process will be  No more than 2 or 3 options for each class of business ….Remember, Insurers will receive a number of tenders and you want yours to be at the top of the pile rather than the bottom

Jardine Lloyd Thompson Insurance Broking Division Evaluation  Allow plenty of time for this  Although you ask for specific cover, excesses etc each Insurer will quote for what they want to provide  There will inevitably be differences on the major classes  Need time for clarification and to seek alternatives where required

Jardine Lloyd Thompson Insurance Broking Division Conclusion  Need not be stressful if well planned and if you have sufficient time  Remember you will be stuck with your decision for at least 3, possibly 5 years so it is important to get it right

Jardine Lloyd Thompson Insurance Broking Division What we have covered  Directive 92/50/EEC  Timetable  Review of Cover/Options  Evaluation

Jardine Lloyd Thompson Insurance Broking Division Questions