Annal Nayyar – blogs -Overhaul expected of local government insurance procurement

Government efficiency chiefs are seeking to overhaul how local authorities procure insurance, it has emerged.

The news follows the appointment yesterday of Michael Wade as one six Crown Representatives – business leaders appointed to ensure the government gets value for money from its suppliers.

Mr Wade, who helped restore the fortunes of historic insurance agents Lloyds of London in the 1990s, has been asked by Cabinet Office minister Francis Maude to bolster government efforts to squeeze further savings by renegotiating deals with major public sector providers.

However, because Whitehall departments tend to self-insure, the Financial Times today reported that Mr Wade will cast his gaze over the wider public sector – including local authorities – to determine if they could get better value for money by either pooling their demand or running self-insurance schemes.

Figures produced by the DCLG suggest local authorities spent £643m on insurance in 2011/12, but the Cabinet Office itself has no clear picture on how much is spent on premiums across other parts of the public sector.

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