Our project risk team provides insurance advice to the public sector with regard to public private partnerships (PPPs).
Our role is principally to determine the minimum insurance requirements for the bid, review the bids in relation to insurance, negotiate changes and final bids in order to achieve value for money for the public sector, and represent the public sector in their negotiations with bidders and lenders.
In summary, we provide comprehensive consultancy and support that:
- Provides an assessment of project risks, advice on the allocation/flow of risks identified within the project risk register, and commentary as to whether such risks are insurable.
- Recommends insurance strategies in relation to the project risks, and advises on how the project insurance arrangements would interface with the authority’s own annual insurance arrangements.
- Extensively contributes to the project contract documentation where there are overt and covert insurance implications.
- Provides the authority with clarity with regards to the uninsurability and insurance premium cost-sharing mechanisms. This includes the preparation of the insurance statement and bid deliverables for inclusion within the authority’s bid documentation.
- Undertakes formal evaluations of all bids received in respect of compliance with bid deliverables and the robustness, effectiveness, and viability of the risk management/insurance proposals.
- Evaluates the bidders’ insurance premium costs to ensure competitiveness, efficiency, and prevailing insurance market conditions.
- Assesses any self-insured and/or uninsured proposals from bidders.
- Evaluates bidders’ insurance contingencies included within their bid proposals to ensure reasonableness and value for money in the private finance initiative (PFI)/PPP market.
- Provides the administration of cover notes in preparation for financial close to ensure the required project insurances are in place, in accordance with contract requirements.
- Secures the signed broker’s letter of undertaking.