Management Consulting
Aon
Full Credential Description
The case study focuses on the significant reorganization of local government in England, which is the largest in over 50 years, set to culminate in 2028. The client, represented by Pete Rayner, public sector practice leader at Aon, faced the challenge of preparing for the insurance needs of newly formed unitary authorities that will emerge from this reorganization. The governments initiative aims to enhance local accountability, improve outcomes for residents, and achieve cost savings, but it presents a complex landscape for insurance managers tasked with securing coverage for these new entities. To address these niche issues, Aon proposed a tailored solution that involved several preparatory steps. First, it emphasized the importance of forming working groups that include insurance managers and risk management experts from the existing councils. This collaboration is crucial to retain expertise that may be lost during the restructuring process. Second, Aon recommended the collection of comprehensive data on assets and existing insurance arrangements, ideally spanning up to ten years. This data is essential for conducting claims analysis and understanding the risk profiles of the merging councils. Additionally, Aon advised rationalizing the insurance approach by analyzing the variances in coverage and excesses among the councils. For instance, discrepancies in excess amountssuch as a £250,000 excess for a county council versus a £1,000 excess for a district councilhighlight the need for a unified risk profile for the new authority. The study also pointed out the importance of understanding long-tail liabilities inherited from previous organizations, which could include historic claims related to abuse and occupational diseases. The results of these tailored preparations are expected to yield significant benefits. By engaging insurers early in the process and providing detailed underwriting information, the new authority can secure favorable terms and coverage. Aons strategic approach aims to not only streamline the insurance procurement process but also drive efficiencies across the new organizations, ultimately benefiting residents and the broader community. The proactive measures outlined are designed to ensure that the new authorities are well-prepared to navigate the complexities of their insurance needs in a challenging market environment.