Camden Council's Cabinet has approved a procurement strategy for property, combined liability, and terrorism insurance policies with an estimated aggregate value of £11 million over five years.
The decision, made during a Cabinet meeting on Monday, July 6, 2026, ensures the Council has adequate and continuous insurance cover following the expiry of current contracts on March 31, 2027. The five-year contract, set to begin on April 1, 2027, is part of a London-wide collaboration led by the London Borough of Croydon, known as the Insurance London Consortium (ILC).
The ILC aims to achieve economies of scale and competitive pricing through joint procurement, which is expected to result in projected cost savings compared to Camden Council procuring insurance independently. The estimated aggregate cost of the policies over the 5-year term is £11 million (inclusive of Insurance Premium Tax), broken down as £0.7 million for terrorism insurance, £7.4 million for property insurance, and £2.9 million for liability insurance. This expenditure equates to approximately £2.2 million per annum, with sufficient budget provision in place to meet these costs. The contracts will incorporate allowances for inflationary increases, and any additional premium increases would be driven by factors such as claims experience and prevailing insurance market conditions. Efficiencies achieved through this procurement, along with annual reviews of the Council's insurance excess levels, will be reflected within the Council's Medium-Term Financial Strategy (MTFS).
The insurance policies will cover a range of risks for Camden Council. Property insurance will cover all of the Council's buildings, including council dwellings, schools, and offices, protecting against damage from fire, lightning, subsidence, and escape of water. Liability insurance will cover risks to third parties, such as injury to employees, issues related to highways, slips and trips, damage to third-party property (including subsidence caused by Council trees), and water damage suffered by residents in certain circumstances. Terrorism insurance is designed to cover low probability, but high value risks.
The procurement process will be managed through an open tender via the Find a Tender portal. Tenders will be evaluated based on a weighted scoring system, with a working assumption of 60% for price and 40% for quality. The selection will be based on the most economically advantageous tender.
Camden Council, through its Insurance Manager, is an active participant in the ILC, an officer-led group where each borough is represented by their insurance manager. This ensures Camden Council feeds into the process and that Social Value is maximized, rather than this being solely handled by the ILC.
Potential risks associated with the consortium approach, such as a historically limited insurance market leading to reduced competition, are being mitigated. The consortium is actively engaging with the insurance market, including insurers who have expressed interest but are not currently active, and has conducted market warming meetings and an Insurer day. To address concerns about contract specification alignment with market expectations, the consortium's broker, who possesses market expertise, is involved in compiling specifications. The consortium approach itself is designed to mitigate the risk of non-competitive bids by harnessing economies of scale to ensure attractive pricing.
Historical claims data between April 2022 and March 2026 for Property, Liability, and Terrorism insurance, along with aggregate stop loss figures, informed the risk assessment and estimated costs. Further details can be found in the Public reports pack for the Cabinet meeting. Public reports pack 06th-Jul-2026 19.00 Cabinet
Authority to award the contract has been delegated to the Executive Director of Corporate Services, following consultation with the Cabinet Member for Finance and Cost of Living. The meeting agenda and decisions can be viewed at: Agenda frontsheet 06th-Jul-2026 19.00 Cabinet Decisions 06th-Jul-2026 19.00 Cabinet