1819-0393 Insurance Claims Handling

Islington Council invites suitable expressions of interest from suppliers for an insurance claims handling service.

Current status / Background

Islington Council has had an out-sourced service for handling its insurance claims for several years. No claim files are kept in-house and all decisions on claims processing and information gathering are the responsibility of the provider. The current contract expires this year.

The requirement

The Council requires a new seven-year contract to run from 01 December 2019 to have its insurance claims of all types, including the main three, liability, property and motor claims dealt with by an external provider. Full, delegated responsibility will be given to the provider to process claims to settlement. As the Council will not retain claim files of its own it is essential that the bidder provides a high quality service of recording and reporting claims, and that the Council can access that information via detailed management reports and look up claim files retained by the bidder.

Lots

The council’s requirement is for one provider to cover the full range of claims handling.

TUPE [Transfer of Undertakings (Protection of Employment) Regulations]

Potential providers must be aware that TUPE may or may not apply to this service. Further details will be available in the invitation to tender.

Contract Period

The contract period will be for 84 months from an estimated start date 01 December 2019, initially for 3 years, with the option to extend from 01 December 2022 for two additional periods of 24 months, subject to satisfactory performance and available funding.

Contract Value

The estimated total value for this service is £1.4m - £1.75m over the maximum 84 months term of the contract. This is based on £200,0000-250,000 per annum. However, the actual value will vary according to the number of claims actually received, their type and complexity. Tenders will be evaluated for price on the basis of a schedule of the charges they will levy based on type and complexity. As a guide, the Council has received the following numbers of claims on average for the last three years:
• Liability 235
• Motor 148
• Property 111
Award criteria

The contract will be awarded to the Most Economically Advantageous Tender (MEAT) in accordance with the Public Contracts Regulations. MEAT for this contract is quality 65% and cost 35%. Tender submissions will be subject to minimum quality thresholds of 3 for each question. Further details will be provided in the invitation to tender.

Cost 35%
Quality 65%

Quality made up of:
• Claims Handling Procedures 20%
• Customer Service 15%
• Fraud Prevention 10%
• Complaints Handling 10%
• IT systems, recording and management reporting 10%

Total 100%

Tenderers should be aware that we reserve the right to hold presentations and/or interviews during the tender process. Presentations and/or interviews will be for verification/clarification purposes of the written submission.

Procurement Process

This contract will be procured using the Open Procedure. The Open Procedure means that all bidders who successfully express an interest will automatically be invited to tender and have access to the tender documents. Those who submit a tender and meet the minimum requirements will have their full tender, method statements and pricing evaluated.