Working together for central insurance system

The collaboration aims to develop a single national insurance system that will save cash at a time when public sector budgets are being squeezed.

Those involved in the initiative include Wakefield-based YPO, which is the UK’s largest not-for-profit local authority buying organisation.

YPO, which dates from 1974, uses its buying power to try and get the best price for councils, schools and other public sector bodies.

Despite the spending squeeze, public sector organisations still need to buy items such as office supplies, cleaning materials and school books.

Simon Hill, the former executive director of business at Yorkshire Forward, which was scrapped as part of the Government’s austerity measures, became the managing director of YPO last year.

Yesterday, YPO revealed that the Government procurement service and the Pro5 group of the five largest public sector buying organisations are developing a national EU compliant insurance framework by the end of 2012.

The collaboration aims to aggregate insurance spending across the public sector in order to keep costs down.

Duncan Spokes, the professional services category lead at YPO, said: “This collaborative approach to the procurement of insurance services between the largest public sector buying organisations will ensure the market is receiving the right message to deliver both efficiencies and a number of financial benefits for customers within both local government and the wider public sector.”

The initial scope of the framework agreement is proposed to cover brokerage and insurance (underwriting).

The partnership has also established a stakeholder group of customers and suppliers who will help to devise the contracts.

David Pyle, the category lead for insurance at the Government Procurement Service, said the aim was to deliver the best value for the taxpayer.

The YPO spokesman added: “Feedback from the marketplace has been very positive – it has involved representatives from the NHS, police and local government authorities.”

South and West Yorkshire Police authorities have also scrapped plans to implement their insurance system in favour of the proposed national agreement.

Beverley Nichol-Culff, the head of risk management and insurance at West Yorkshire Police, said: “Our plans were withdrawn as the scope of the national framework is much more comprehensive, covering many fundamental aspects and services which also meet the requirements of the policing community.”