South East Alarm Seminar 2005 OJEC Notices and

South East Alarm Seminar 2005 • OJEC Notices and Tendering • Julia Reffell – JLT Public Sector Risks

Jardine Lloyd Thompson Insurance Broking Division Introduction § Julia Reffell - Account Executive Jardine Lloyd Thompson Public Sector Risks

Jardine Lloyd Thompson Insurance Broking Division Agenda/Objectives § § § § § The intention of Directive 92/5 O/EEC OJEC and Insurance Type of Procedure Timetable Review of Cover Options Evaluation Conclusion What we have covered Questions

Jardine Lloyd Thompson Insurance Broking Division The intention of Directive 92/50/EEC 1. 2. 3. Community wide advertising of contracts so that firms in all member states have an opportunity of bidding for them. The banning of technical specifications liable to discriminate against potential foreign bidders. Application of objective criteria in tendering and award procedures.

Jardine Lloyd Thompson Insurance Broking Division OJEC and Insurance § Insurance is subject to all the provisions of the Directive. § Procedure § Common Procurement Vocabulary 66 30 00 00 – 3 Insurance and Pension Services, except compulsory social security services. PIN – Prior Information Notice Contract Notice (3 types of procedure) Contract Award Notice

Jardine Lloyd Thompson Insurance Broking Division OJEC and Insurance § Lots 6630 00 00 – 3 Insurance and Pension Service 6633 40 00 – 0 Insurance services relating to transport 6633 41 00 – 1 Motor Vehicle Insurance Services 6633 70 00 – 1 Liability Insurance Services 6633 71 00 – 2 Motor vehicle liability insurance services

Jardine Lloyd Thompson Insurance Broking Division OJEC and Insurance § Value Threshold – 200, 000 ECU 750, 000 ECU § Method of Calculation of the Contract Valve § Splitting Contracts

Jardine Lloyd Thompson Insurance Broking Division Type of Procedure § § OJEC changing in 2006 Contract Notice Open Procedure – 52 days for receipt of tenders. Restricted Procedure – 37 days for receipt of requests to participate 40 days for receipt of tenders. Negotiated procedure – 37 days for the receipt of requests to participate.

Jardine Lloyd Thompson Insurance Broking Division Timetable § § § It takes longer than you think! For 1 st April renewals you should have started October/November 2004 Having a timetable will help to make sure you don’t run out of time Allow ‘slippage’ time Work backwards Example

Jardine Lloyd Thompson Insurance Broking Division Timetable § § § Renewal 1 st April 2005 Absolute deadline for making a decision – 31 st March 2005. Ideally you would prefer not to be making decisions this late in the day! Remember Easter – 25 -28 March 2005

Jardine Lloyd Thompson Insurance Broking Division Timetable § § § Do you need Committee Approval? Dates of Committee Meetings If Committee Meeting is 18 th March – how long before do you need to submit report? Say one week – 11 th March Whether you are doing evaluation yourself or a broker is doing this, allow 2 weeks – 25 th February Usually allow a minimum of three weeks for Insurers to quote, but at this busy time of year, allow four if you can – 28 th January

Jardine Lloyd Thompson Insurance Broking Division Timetable § § § Contract Notice – if Negotiated Procedure used, 37 days – 23 December PIN – should allow minimum 52 days before publication of Contract Notice – 2 November So your timetable will look something like this: -

Jardine Lloyd Thompson Insurance Broking Division Timetable § § § 2 November 2004 – Issue PIN 23 December 2004 – Issue Contract Notice 28 January 2005 – Issue Tender 25 February 2005 – Tenders Returned 11 March 2005 – Report to Cabinet 18 March 2005 – Cabinet Meeting

Jardine Lloyd Thompson Insurance Broking Division Timetable § § These are the ‘key’ dates In addition, you have to consider the following: § § Cover Reviews Gathering of Information required for the Tender Implications of a change of Program/Insurer These need to be completed before you can issue the tender document

Jardine Lloyd Thompson Insurance Broking Division Review of Cover § § § Ideal time to review insurance cover Look at what is covered and why Look at excess levels Look at aggregate levels Look at claims handling arrangements

Jardine Lloyd Thompson Insurance Broking Division Options § § § Have well considered options. The more options you have the more difficult the tender evaluation process will be No more than 2 or 3 options for each class of business …. Remember, Insurers will receive a number of tenders and you want yours to be at the top of the pile rather than the bottom

Jardine Lloyd Thompson Insurance Broking Division Evaluation § § Allow plenty of time for this Although you ask for specific cover, excesses etc each Insurer will quote for what they want to provide There will inevitably be differences on the major classes Need time for clarification and to seek alternatives where required

Jardine Lloyd Thompson Insurance Broking Division Conclusion § § Need not be stressful if well planned and if you have sufficient time Remember you will be stuck with your decision for at least 3, possibly 5 years so it is important to get it right

Jardine Lloyd Thompson Insurance Broking Division What we have covered § § Directive 92/50/EEC Timetable Review of Cover/Options Evaluation

Jardine Lloyd Thompson Insurance Broking Division Questions