Insurance services

Tender description

Hampshire County Council is tendering on behalf of the Fire and Rescue Indemnity Company Limited (FRIC) in order to find a suitable Provider to deliver Management Services for the FRIC's Discretionary Mutual. The suitable provider will manage a discretionary pooling of funds. This process is a recognised alternative to conventional insurance. When the size of each body is not sufficiently large to carry the risk of a large policy deductible or excess these cost saving benefits can be achieved through a discretionary pool. The discretionary element is a legal device to ensure that the arrangement is not treated as an insurance company, thereby requiring significant working capital to be deposited. The FRIC is interested in hearing from Suppliers who would be able to provide Management Services to their Discretionary Mutual. The FRIC wish to establish a contract for a maximum of 9 years on the following basis: 3 years with the option to extend in increments of 3 years + 3 years. The mutual would be run on a day to day basis by professional managers appointed by the mutual. They will be required to meet all the necessary professional requirements of the Financial Conduct Authority and would also bring experience and specialist market knowledge as well as providing actuarial services to financial modelling and claims management. The FRIC is made up of 9 Fire and Rescue authorities. Hampshire, Cambridgeshire, Royal Berkshire, Essex, Kent, Cheshire, Devon and Somerset, Bedfordshire, Leicestershire. Other Fire authorities may join through the proposed 9 year period. Provision of Discretionary Mutual Management Services to the Fire and Rescue Indemnity Company Ltd. Including but not limited to: — executive management, — programme optimisation, — underwriting and operations, — protection programme (excess and aggregate insurances. nb: excludes procurement of insurance), — claims, — finance, — IT (enabling and supporting the other service components), — governance, legal, regulatory and compliance, — operational actuarial, — independent actuarial, — marketing (mutual membership), — risk management, — resilience and business continuity, — pool risk register.