Insurance partnership saves millions

Insurance partnership saves millions

A partnership between 25 councils has led to reduced insurance premiums and cost savings for ratepayers across Bay of Plenty, Hawke’s Bay, the Horizons Region and the West Coast.

Manawatu-Wanganui LASS, Bay of Plenty LASS, Hawke’s Bay LASS and the West Coast Group of Councils recently joined together to tender for Insurance Brokerage and Risk Management services and have achieved significant cost savings in excess of $3million, allowing each council to reallocate its savings to other priority activities.

Horizons Regional Council Group Manager and Executive Officer for MW LASS Craig Grant says the partnership demonstrates how councils across the country can work together where there is a common drive to achieve economies of scale.

“The Local Authority Shared Services or LASS model is paving the way for councils throughout New Zealand to work together to achieve cost savings or service improvements,” he says.

“In this case, with assistance from our advisers Grant Thornton New Zealand, we’ve achieved substantial synergies in our insurance programs and, while there has been a softening of the market, these savings simply would not have been achieved had all 25 councils acted on their own.

“Through this process we have achieved the same level of insurance services for our councils, with an even better result for our ratepayers.”

AON New Zealand will be providing Insurance Brokerage and Risk Management services to MW LASS, BOP LASS and the West Coast Group of Councils, with JLT providing these services to the HB LASS.

ENDS

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