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25 February 2013 | Anna Reynolds
The first national framework providing insurance services to the public sector is being launched today by The Government Procurement Service (GPS) and buying consortium Pro5.
The four-year agreement for £850 million spend covers brokerage services, insurance underwriting, claims and risk management. The framework will provide public sector bodies with access to insurers without having to go through lengthy procurement processes, while reducing duplication across multiple organisations.
Providing access to more than 40 insurers, the framework aims to give buyers across emergency services, local authorities, NHS trusts, housing associations, charities and education a route to better data and claims information.
Paul Smith, director Pro5 and YPO, said: “We needed to fill a gap in the market, providing effective and efficient insurance procurement. The demand was there, but surprisingly nothing was already in place. Now, with the ability to buy insurance services under a single agreement, it will help public sector bodies reach their efficiency and financial savings targets, which they are under pressure to achieve in the current cost-cutting climate.”
There are three options available on the framework:
● Lot one – multiple suppliers covering the provision of insurance and support services.
● Lot two – multiple suppliers covering the provision of insurance brokerage and support services.
● Lot three – a single supplier covering the provision of insurance brokerage and support services for organisations that require additional support, guidance and knowledge.
In the third lot, suppliers were asked to provide a range of core services, which enabled an e-auction to be held. This resulted in the bid from the successful supplier being 31 per cent lower than the lowest opening bid, helping to further drive down costs and deliver value for money for customers.
David Pyle, insurance category lead at GPS, added: “This is a relatively new area for many suppliers who are looking to expand the scope of their services into the public sector. We have collaborated with Pro5, the insurance market and our customers to deliver not only the first, but the best possible competitive and value-for-money solution for all concerned.”
The list of suppliers on the new framework is available from here.
For public sector bodies who want more information about the framework, contact email@example.com or visit the Pro5 website.