Insurance Strategy 2019

Reference code: 
PCD 607
Date signed: 
19 July 2019
Authorisation name: 
Sophie Linden, Deputy Mayor, Policing and Crime

Executive summary

Under the Scheme of Delegation and Consent there is a requirement to annually approve the insurance strategy to ensure it remains fit for purpose.  This paper seeks authority for a three year insurance strategy, including the necessary procurements. 


The Deputy Mayor for Policing and Crime is recommended to: 
1.    Approve the proposed new 3 year Insurance Strategy effective from the 2019 insurance policy renewals at 01/10/19, with the proviso that any significant change will seek the approval of the DMPC on an annual basis. 
2.    To note that the cost of insurance premiums covered by the proposed Insurance Strategy will be          met from the Finance Services Revenue Budget

Non-confidential facts and advice to the Deputy Mayor for Policing and Crime (DMPC)

1.    Introduction and background

1.1.    This is a new three-year insurance strategy, following the imminent completion of the 2016 strategy.   
1.2.    The use of insurance enables MOPAC/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 procurements of insurance.

2.    Issues for consideration

2.1.    MOPAC/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 Scheme of Delegation and Consent requires the Deputy Mayor for Policing and Crime to review the insurance strategy on an annual basis.  As part of the approval of this three year strategy the MPS is required to review the insurance strategy on an annual basis to ensure it is still fit for purpose, and to report significant changes to MOPAC. 

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 all functions which can be delegated to the DMPC have been delegated the DMPC may approve this multi-year strategy.  Any significant changes to the strategy will be reported on an annual basis.

4.2.    As the value of the proposed procurements over the life of the strategy are in excess of £500,000 MOPAC approval [SoC&D 4.13] is also required.

5.    Commercial Issues

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

6.    GDPR and Data Privacy 

6.1.    The Insurance Strategy itself does not use personally identifiable data of members of the public.  Very limited private data is provided to insurers, in the course of handling claims from third parties. Insurers are aware of their obligations in relation to data privacy.

7.    Equality Comments

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

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