Report FSD19089

The Committee considered a report advising Members of the position of the Insurance Fund as at 31^st March 2019, and presenting statistics relating to insurance claims for the last two years. In 2018/19, the total fund value increased slightly from £3.7m to £4.0m.  A mid-year review of the fund had also been carried out and, at this stage, it was estimated that the final fund value as at 31^st March 2020, would remain approximately the same with the position monitored throughout the year.

In response to a comment from the Chairman, the Insurance and Risk Manager confirmed that future reports could provide details of the spread of claims throughout the year to enable Members to identify any emerging trends.  The Insurance and Risk Manager reported that there had been a downward trend in claims since 2014, apart from the previous year when there had been bad weather at the beginning of the year.  Members highlighted that it was also important for them to be able to identify if there was a correlation between an increase in claims (e.g. for potholes) and a reduction in service (e.g. reduced funding for highway maintenance).  The Committee noted that where claims were made any relevant departments were provided with details of the claim to ensure that appropriate action could be taken to mitigate against any further claims.

The Chairman questioned why the stop loss figure for property had increased by 50% following the tender exercise.  In response the Insurance and Risk Manager explained that this was due to an increase for the storm/flood excess.  Under the previous contract the Council would have been required to pay an excess per property affected from storm/flood.  Under the new policy only one excess would be paid regardless of the number of properties affected by storm/flood. The increase in the stop loss was to balance the increase in premium for this clause.

In respect of the outstanding claims for public liability, Members noted that there were 248 claims with a total value of £1,771,268 and questioned for how much the Council may be liable.  In response the Insurance and Risk Manager explained that decisions were taken on a claim by claim basis but it was likely that the Council would defend 70% of the total claims received each year.

In response to a question concerning the cost of renewal, the Insurance and Risk Manager explained that it was difficult to predict the actions of an insurer. However, the Council’s commercial insurance policy was different to a consumer policy whereby the Council accepted a greater level of risk by having a higher level of excess. Also by setting a stop loss that was unlikely to be breached the likelihood of the insurer having to incur any payments was reduced. This in turn should hopefully reduce this possibility of the insurer increasing insurance premiums 

Concerning a query about insurance for taking the Mayor’s chains abroad, the Insurance and Risk Manager confirmed that the cover currently insured  ...  view the full minutes text for item 74