Aon Risk Solutions National INVITATION TO TENDER 2016 Insurance Services Tender Document FOR TENDRING DISTRICT COUNCIL Prepared for Tendring District Council in conjunction with The Authority’s appointed Broker, Aon UK Limited Renewal Date: 1st July 2016 Deadline Date for receipt of Insurance Quotations 2pm Friday 20th May 2016 The information contained in this presentation is given in confidence to underwriters, to enable tenders to be provided to Aon Risk Solutions and, if appropriate, to grant cover on receipt of our instructions. The information may not be used for any other purpose without our written consent. 1 Aon Risk Solutions National Table of Contents General Information 4 Risk Profile 5 Risk Management Overview 6 General Financial Information 7 Business Activities 8 Collaborative / Shared Services 9 Overview of Key Risk Exposures 10 Risk Management 14 Invitation to Tender 15 Instructions to Bidders 16 Specific Instructions for Underwriters 20 Process for submitting your proposal 21 Evaluation Criteria 22 Evaluation Criteria – Non Engineering Classes 23 Evaluation Criteria – Engineering Insurance and Inspection 27 UNDERWRITING INFORMATION 29 Lot 1 – a) Property Insurance - Material Damage 30 Lot 1 – b) - Business Interruption 41 Lot 1 – c) Money 44 Lot 1 – d) All Risks 46 Lot 2 Contract Works 48 Lot 3 - Computer 50 Lot 4 Casualty 54 Lot 4 – a) Employers' Liability 55 Lot 4 - b) Public / Products Liability 60 Lot 4 – c) Official’s Indemnity including Land Charges 65 Lot 5 - Motor Fleet 70 2 Aon Risk Solutions National Lot 6 – Full Crime 78 Lot 7 - Personal Accident/Travel 80 Lot 8 - Engineering Insurance and Inspection 85 Lot 9 - Terrorism 87 Lot 10 - Provision of Insurances - Package Basis 88 Tender Checklist 89 Pricing Schedule 90 Non Collusion / Conflict of Interest 93 Appendix 1 – Income generating activities 94 Appendix 2 – Risk Management Framework 95 Appendix 3 – Corporate Risk Register 96 Appendix 4 – Property Schedules 97 Appendix 5 – Property Claims Listings 98 Appendix 6 – Photos of Key Locations 99 Appendix 7 – All Risks Schedules 100 Appendix 8 – Employers Liability / Public Liability Claims 101 Appendix 9 – Motor Fleet Vehicle Schedule 102 Appendix 10 – Motor Fleet Confirmed Claims Experiences 103 Appendix 11 – Motor Fleet Claims Listings 104 Appendix 12 – Crime Proposal Form 105 Appendix 13 – Engineering Plant Schedule 106 Appendix 14 – Computer Locations 107 Appendix 15 – Non Standard Construction 108 Legal and Regulatory 109 3 Aon Risk Solutions National General Information Full name of client: Tendring District Council Principal Address Town Hall, Station Road, Clacton on Sea, Essex, CO15 1SE Business Description Local Government Authority Existing Aon Client Aon Risk Solutions are the appointed broker to the Council Renewal Date(s) of Existing Cover(s) 1st July 2016 Details of any Long Term Agreement(s) or Undertakings Expires 30th June 2016 Website www.tendringdc.gov.uk 4 Aon Risk Solutions National Risk Profile The Tendring District has many geographic, demographic and economic characteristics that make it distinctive from other areas. These provide both opportunities and challenges with the main features as follows: . Tendring enjoys over 36 miles of coastline, award-winning sandy beaches, numerous coastal towns providing anything from the traditional pleasures of the seaside to maritime heritage, a variety of beautiful and picturesque villages and one of the busiest harbours in Europe. The coastal geography is one of the greatest assets but also presents difficulties such as expensive management issues. A large majority of people living in Tendring consider it a good place to live, which is reflected in the number of individuals who have decided to retire to the area. A very high proportion of our residents are over the age of 65. The population is growing rapidly and is predicted to grow from 146,000 in 2009 to 170,000 by 2026. People live in five main areas of settlement and villages across the District with differing community needs and aspirations. The Council provides a number of services expected of a ‘usual’ local authority which include a range of mandatory and discretionary services. The Council to date has not taken the approach of outsourcing large elements of its functions and is in fact seeking to bring services back in-house where beneficial. The Council is currently reviewing its key corporate objectives but a broad summary of current priorities is set out below: Our Prosperity . Build a thriving local tourism industry. Promote sustainable economic growth. Ensure people have the knowledge and skills to secure good employment. Our People . Reduce health inequalities and disadvantage. Promote healthy and active lifestyles. Remain a low crime area and reduce the fear of crime. Our Place . Ensure all our residents live in high quality housing which meets local needs. Regenerate the District and improve deprived areas. Protect and enhance our environment, countryside and coast. 5 Aon Risk Solutions National Risk Management Overview The Council has adopted the CIPFA / Solace guidance in respect of “Delivering Good Governance in Local Government” which includes the core principle of “taking informed and transparent decisions which are subject to effective scrutiny and managing risk”. The Council understands that by being risk aware and understanding its risk appetite, the Council will be better able to take advantage of opportunities and mitigate threats. Within the context of the above, Tendring District Council has adopted a risk management framework which is integrated with departmental planning with departmental risk registers being regularly reviewed. Risk management guidance is readily available and is published on the Council’s intranet. The Council’s approach to risk is that it must be addressed on an integrated basis with everyone having roles and responsibilities for its management. Risks are managed by evaluating the inherent and residual risks applicable, scored to provide a risk rating, which are then assessed taking account of the Council’s risk tolerance / appetite with Corporate Risks reviewed by the Council’s Audit Committee on a 6 monthly cycle. The Council’s Senior Management Team review Corporate Risks on a regular basis and have included this on-going review as a standing item on their agendas. Via the above reviews, the Council not only takes action when required but it actively looks to undertake risk ‘audits’ with the support of external specialists. Annual ‘audits’ are carried out by the Council’s Health and Safety Officer such as fire risk assessments. Risks also form an integral part of the work of the Council’s Internal Audit Function who have recently amended their reporting format to draw out risks from potential control ‘failures’ to make sure there is a clear focus on risks that require mitigation. During a time of reducing Local Authority budgets, the Council has not ignored spending money where is essential to do so to mitigate risks. A budget of over £50k has recently been established to upgrade the fire alarm systems in the Council’s main operational building to ensure it remains as up to date and fit for purpose as possible. Significant investment is being made in IT infrastructure which supports the Council in being more resilience to risks such as the management of personal data. The Council also has in place business continuity plans at departmental level which help to mitigate potential long term exposure to risks that significant events could have on the Council’s ability to deliver its services and therefore it’s associated financial losses. The Council is aware of revised Code of Corporate Governance that is expected to be published later this year, and there has already been a commitment from the Council to review and adopt new activities and actions where possible, which are likely to include demonstrating a commitment to managing risks effectively. 6 Aon Risk Solutions National General Financial Information Total Net Budget: 2013-2014 £22,821m 2014-2015 £16,362m 2015-2016 £14,834m Revenue Estimates 2015/16 Portfolio / Committee Summary 2015/16 Original Estimate £ Environment and Coast Protection 7,343,960 Finance and Transformation (443,930) Housing, Benefits and Revenues 2,376,490 Planning and Corporate Services 2,761,650 Regeneration, Inward Investment and 779,540 Asset Management Tourism, Events and Leisure Services 1,741,330 Wellbeing and Partnerships 377,470 Development Control Committee 14,880 Human Resources Committee (0) Licensing Committee 93,820 Regulatory Committee 389,930 Net Cost of Services 15,435,140 Revenue support for Capital 3,237,550 Investment Financing Items (692,480) Budget Before use of Reserves 17,980,210 Contribution to / (from) earmarked (3,145,430) reserves Total Net Budget 14,834,780 Formula Grant: Business Rates (including Tariff and (4,357,960) Levy) Revenue Support Grant (3,561,210) Collection Fund Surplus (376,620) Council Tax Requirement (for 6,538,990 Tendring District Council) Parish Precepts 1,359,914 Council Tax Requirement (as per 7,898,904 Requisite Calculations) 7 Aon Risk Solutions National Business Activities Please refer to Appendix 1 for a full list of business activities. The Council carries no responsibility for: . Fire . Police . Waste Management (outsourced) . Social Care . Education . Highways Changes in business activities There are no significant changes planned over the next 12 months. However the Council is taking an active role in the Government’s devolution agenda via partnership working with other Essex Authorities, working with other Local Authorities on joint working and shared service opportunities. These are not over and above the ‘basic’ functions set out in the previous section but a potential alternative delivery approach. The devolution agenda may end up with powers being devolved down to Local Authorities at some time in the future but this is not expected in the next 12 months. Additional burdens / responsibilities may also follow but there are no specific details available at the present time as the Government consider the longer term future for Local Government.