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Opening up potential £850m public sector market to insurance firms

A widely anticipated first national agreement worth a potential £850 million over four years for the provision of non-life insurance to the public sector, has been launched by Government Procurement Service (GPS) and national procurement consortium, Pro5 Group.

The new EU-compliant insurance framework, available from 25 February, follows an extensive collaboration across a number of public sector organisations. The scope of the framework will cover brokerage services, insurance underwriting, claims and risk management.

The agreement will drive savings by providing public sector bodies with access to leading insurers and insurance brokers without having to go through lengthy EU procurement processes, saving both time and money, while reducing duplication across multiple organisations.

Additionally, with access to over 40 insurers and brokers on the framework agreement, it will deliver choice to the public sector and provide all suppliers with the opportunity to develop their public sector portfolio. It will also enable public sector buyers, including emergency services, local authorities, NHS trusts, housing associations, charities and education, access to better data and claims information.

In the single supplier insurance brokerage service (lot 3) suppliers were asked to provide a range of core services. This enabled an innovative eAuction to be conducted, which resulted in the successful supplier bid being 31% lower than the lowest opening bid, demonstrating that eAuctions can help further drive down costs and deliver value for money for customers.

David Pyle, Government Procurement Service, Insurance Category Lead said: “With no national framework agreement for insurance in place, GPS and Pro5 were receiving numerous enquiries from public sector customers asking for advice.

“This is a relatively new area for many suppliers who are looking to expand the scope of their services into the public sector. We have collaborated with Pro5, the insurance market and our customers to deliver not only the first, but the best possible competitive and value for money solution for all concerned.”

Paul Smith, Director Pro5, added: “We needed to fill a gap in the market, providing effective and efficient insurance procurement. The demand was there, but surprisingly nothing was already in place. Now, with the ability to buy insurance services under a single agreement, it will help public sector bodies reach their efficiency and financial savings targets, which they are under pressure to achieve in the current cost-cutting climate.”

To develop the national framework, GPS and Pro5 established a stakeholder group of customers and suppliers to help with the contract documentation, specification and evaluation methods.

Group member, Beverley Nichol-Culff, Head of Risk Management and Insurance at West Yorkshire Police, explains: “Feedback has been extremely positive within the stakeholder group and the marketplace in general. We took the decision at West Yorkshire Police, on behalf of the Northern Police Insurance Consortium, to withdraw our tender for implementing a national police solution in favour of the planned national framework agreement for the wider public sector. It is far more comprehensive and will deliver the cost and time savings to procure the services we are looking to achieve for the Policing Community".

Options available on the framework are:

· Lot 1 – multi supplier lot covering the provision of insurance and support services
· Lot 2 – multi supplier lot covering the provision of insurance brokerage and support services
· Lot 3 – a single supplier lot covering the provision of insurance brokerage and support services, for organisations who require additional support, guidance and knowledge

The new framework is available from 25 February 2013. For more information, please contact or visit


About Pro5

Pro5 Group is a partnership of public sector buying organisations in the UK (CBC, ESPO, NEPO and YPO) with a combined purchasing power in excess of £2bn a year, set up to help deliver best value to local authorities and the wider public sector. Pro5 is committed to delivering national procurement solutions that achieve value and cost savings to those parts of the public sector providing education, local government, social care, emergency services and community support. Pro5 and Government Procurement Service (GPS) are working together to develop opportunities in other category areas to deliver benefits for all customer groups. For further information, please visit

About Government Procurement Service

Government Procurement Service, an executive agency of the Cabinet Office, is the delivery arm of Government Procurement. Its overall priority is to provide procurement savings for central government, health and organisations across the UK public sector.

Its main focus is to deliver these savings through expert sourcing, category and centralised data management. By centralising, standardising and aggregating spend on common goods and services they deliver significant, sustainable cost reductions to government.

Government Procurement Service provides value for money, commercial procurement solutions which are fully EU compliant, covering energy, office solutions, communications services, professional services, travel, fleet, IT commodities (including telecommunications and networks), property and facilities management and ecommerce. For further information, visit

Amanda Hassall
Direct: +44 (0)1628 822741
Mob: +44 (0)7855 359889

This press release was distributed by ResponseSource Press Release Wire on behalf of Six Degrees Limited in the following categories: Public Sector, Third Sector & Legal, for more information visit