Owner of Yorkshire Water Kelda Group has gone out to tender with an insurance brokerage and risk management services contract for the AMP7 2020-25 investment period - initial contract term is 3 years, with 2 further 1 year extension options.

The contract will be to fulfil the insurance and risk management needs for Kelda Group and its subsidiaries - main subsidiary Yorkshire Water provides water and sewerage services to over 5 million people and 100,000 businesses in the Yorkshire region.

The Group is looking to appoint a single firm to act as its broker - the successful tenderer will need to demonstrate:

• clear understanding of Kelda's business and the risk environment within which it operates
• how they propose to assist Kelda to ensure an opmtimum insurance programme is in place

Services to be provided under the contract include:

• commercial combined — property damage and business interruption;
• commercial combined – tenanted properties;
• commercial combined — terrorism;
• combined liability;
• excess liability combined – multiple layers;
• employers liability;
• Excess Employers liability – multiple layers;
• Directors and Officers Liability;
• excess directors and officers liability – multiple layers;
• employment practices liability;
• professional indemnity — Kelda;
• motor fleet;
• personal accident/travel;
• aviation liability/ drone – hull + liability.

In the area of traditional hazard/insurable risk, Kelda’s risk management philosophy includes the following objectives

• protect the Group balance sheet, earnings and reputation;
• to keep all ‘catastrophe’ risks off balance sheet;
• to restrict the Group’s maximum self-insured exposure;
• to focus on the total cost of insurance (i.e. third party premiums plus the cost of retained risks);
• minimise the cost of risk

Time limit for receipt of tenders or requests to participate is 21^st September 2020 – click here to access 1^st stage tender documentation.