The Government’s announcement of the latest wave of boundary reorganisations undoubtedly raises some concerns for local government insurance managers, with the consolidation of many district and borough councils into much larger unitary authorities. Council employees may be concerned about job losses as departments are merged and resources rationalised, a concern which is unlikely to be wholly misplaced. However, the creation of a larger organisation means a broader pool of insurance risks to manage and thus requires enhanced expertise and resources to manage the new profile of risks they are exposed to.
Single approach required
It is likely that many authorities involved in the super unitary merger are currently operating different systems with differing service level agreements, data storage and cyber security, reporting and auditing requirements, and the transition to a single approach is likely to take time. Merging local authorities will likely alter the overall risk profile of the super unitary and therefore insurance managers will need to reassess and adapt to these changes such as harmonising existing insurance policies, evaluating new risk exposures, developing new risk management strategies, and reviewing the systems in place to manage risk and handle insurance claims.
A larger authority could potentially lower some insurance premiums due to the increased scale but conversely it could also mean that when a large incident occurs, the financial impact to the larger authority is also much greater. Additionally, a larger authority will mean increased data management and analysis; require more sophisticated risk modelling and require greater coordination between different departments. Therefore, an efficient and accurate system for recording and managing insurance claims is vital, which is where JCAD excels. A single platform across a larger population creates opportunities for efficiencies in risk management, as well as investment, innovation, and freedom to select a system that suits the needs of the new authority and its claimants alike.
Improved buying power
Super unitaries will not only have greater risk exposure but also greater purchasing power which could lead to opportunities for negotiating better insurance premiums, relative to the sum of the premiums of the former boroughs and districts. Additionally, the procurement of new systems which allow insurance managers to effectively manage claims and balance the exposure to new risks. It necessitates a proactive and strategic approach to risk management to ensure that the new super unitary is adequately protected.
Whilst the removal of two-tier authorities through the boundary reorganisation creates many uncertainties, ensuring that risks are appropriately assessed, documented and managed for the new larger organisation is critical. JCAD’s software offers a high level of customisation, and we work closely with customers to ensure each solution meets our customer’s specific requirements. As experts in risk management and claims handling solutions, we have been providing software for more than 25 years and can support insurance managers in bringing together multiple systems and requirements in place across the former districts and boroughs to enable a smooth transition to a one-system approach.
