Management Consulting
Aon
Full Credential Description
The Welsh government has proposed significant mergers and reorganizations across local authorities in Wales, potentially reducing the number of councils from 22 to as few as 10. This restructuring aims to align council boundaries with health board areas, which presents both risks and opportunities for the merging authorities. Aons Public Sector expert, Bill Sulman, emphasizes the need for local authorities to carefully assess the strategic and operational risks associated with such mergers. Strategically, authorities must consider the implications of shared services, the potential loss of corporate knowledge, and changes in policy that could affect risk management. Operationally, they need to evaluate the consistency of protocols across merged entities, particularly in areas like highways, social care, and education. The merger will also necessitate a review of the insurance implications, as differing risk profiles will impact the merged insurance program, including limits of indemnity and historic liabilities. Aon highlights the importance of claims handling in this context, as the new authority may need to amend agreements with previous insurers and obtain claims history from prior service providers. Additionally, the restructuring could affect long-term agreements (LTAs), necessitating a full tender exercise to align with the new risk profile. Aons extensive experience in navigating these complexities positions them to assist local authorities in managing the insurance challenges that arise from such significant organizational changes.