The Strategic Director Customer Services and Resources and the Head of Improvement submitted a report for consideration on the findings of the Value for Money (VFM) Review report and the recommendations arising from the report.
Resolved
(1) That the conclusion of the review that the function is relatively high cost with average performance levels but high quality in terms of the qualifications of staff employed and low level of claims payments made be noted.
(2) That the Council move away from the current policy of transferring the majority of council risk to an insurer, to one of self insuring a larger proportion of risk given the very low number of claims currently experienced. This will be achieved by:
a. Discontinuing unnecessary insurance policies and increase excesses on the remaining policies. This will deliver savings of £65,813 in 2010/11.
b. Determining claims in-house rather than pass to insurers to settle. Injury claims should continue to be handled by insurers given the complexity, potential high cost and the expertise needed in determining settlement figures;
c. Transferring the £500,000 reserve fund for the Spiceball reconstruction, following the completion of that project, to the Self Insurance Reserve which currently has a balance of £300,000.
(3) That a net saving of £15,000 in the management of insurance and risk be achieved by:
a. Deleting the post of Risk Management and Insurance Officer in its current form with a gross saving of up to £46,244.
b. Transferring the corporate responsibility for the management of insurance to The Head of Finance, with the operational administration of claims delegated to Heads of Service and operational administrative teams;
c. Market testing for an external provider to deliver the corporate management of risk (but not the routine performance management of risk).
d. Using the balance from a. to fund the costs of b. and c.
(4) That in advance of letting the new insurance contract from 2011/12 Officers be requested to explore the opportunities for achieving further financial savings through consortia purchasing and sharing support and expertise with other local authorities.
Reasons- This review forms part of the Value for Money programme of reviews, which aims to cover all services within the council and improve the value of services offered to residents of Cherwell.