Strategic Considerations for Insurance Services Expansion

CCS Strategic Category Insurance Services 3 DPS Considerations

Options Summary Description Benefits Risks Extend IS2 beyond current 31/04/19 extension period Continuity of service to existing customers. Allows development of an integrated solution to coincide with next iteration Allows changes to RM3731 to take effect with potential growth. Potentially allows for improved alignment with market renewal cycles. Fails to grow insurance spend Continues perception of lack of transparency in further competitions Other agreements may let Re-procurement with same lotting structure in partnership with YPO et al (correcting known issues such as ISB and transparency concerns) Potential to engage new suppliers Potential for more choice Opportunity to take forward good elements of RM3731, remove issues but have less change for suppliers and customers to adapt to Fails to grow insurance spend. Seen as more of the same with consequent lack of enthusiasm Re-procurement with similar lotting structure, creating specific lots for WPS sectors (EG blue light, LG, health, GG, Cyber/Specialist) Potential to engage new suppliers Potential for more focus for brokers Clarifies route to market Opportunity to develop a more sophisticated approach to lots Supplier management and diverse management information may cause complexity Also fails to deliver growth, too similar Implement a DPS for Insurers with a Framework Agreement for Brokers - either single lot or categorised Would enable specialist insurers to be added at any point Filters effectively give greater lotting options Maintains option for direct award for brokerage services Retains direct award option on FA DPS can run across multiple FAs EG a FA for Brokers that accesses the DPS may run for 2 years and then be replaced with a new FA which accesses the continuing DPS Allows confident customers to access DPS directly (notwithstanding insurers preference for Broker intermediation) Overly complex Requires new processes that may be resisted by market Customer appetite low - leads to low uptake

Timing Considerations Extension option available for IS2 IS3 FA & DPS Jan 20 IS3 DPS options include April and November 2020 FE 2018 2019 2020 O N D J F M A M J J A S O N D J F M A M Main WPS commercial insurance anniversary points Extension options available up to 10 months from 30 April 2019 (to February 2020) Target date for IS3 January 2019 (either framework or framework + DPS) IS3 DPS could start independently to align with IS2 extension and market cycle

Customer Market Timings Overview 1 April Renewal Date example 12 Months leading up to a 1 April Renewal Date for Insurance 6 Months to Renewal WPS looking at their risk profile & possibly direct awarding a Broker to manage this aspect. Brokers need to know CCS vehicle format 80m 3 Months to Renewal A comprehensive brief for further competition issued to market and bids assessed CG 12m WPS 68m Awarded Insurers on boarded and implementation progressed in readiness for renewal 980m ID renewals & engage Award through FA CCS Support process

IS2 Customer Journey Initial Contact High level of IS2 customer journey Key: Broker Awarded to Source Insurance Broker Further Competition Choice RM3731 Offline Deliver Broker Services Broker Direct Award Further Competition DPS for Insurers Deliver Insurance Services Deliver Broker Services

DPS - Suppliers & CCS Initially capture widest range of Insurers - ID project specific requirements 12 Months leading up to a 1 April Renewal Date for Insurance 6 Months to Renewal 1 April Renewal Date Define requirement Define award criteria ID Key Insurers Insurer registers Advise supplier of required criteria Advise CCS Broker/Customer 80m 3 Months to Renewal CCS example Check DPS Approved supplier list Advise CCS if necessary suppliers are missing CG 12m WPS 68m Run further competition derived from a DPS Or, via CCS/YPO using DPS 980m Onboard Suppliers on rolling basis ID & Promote DPS opportunities Adjudicate/Award

Customer Journey with DPS Initial Contact High level of possible DPS + FA customer journey Key: Digital Broker Awarded to Source Insurance Broker Further Competition RM6020 (FA) Choice DPS Suppliers Competition Offline Deliver Broker Services Broker Direct Award DPS for Insurers Deliver Insurance Services Deliver Broker Services A DPS would run alongside a Framework and customers will enter either as a direct award to Brokers or by a competition to choose a Broker to then access the DPS. Post award, customers will be networked with Commercial Agreement managers to support their contract management processes and monitor ongoing activity such as MI and additional support .

DPS at CCS It is an electronic procurement procedure used to develop contracts for goods and services commonly available on the market. Requirements are divided into filters for goods and services. There is no specific maximum period of a DPS. The period of validity must be stated on the original OJEU notice; but the Regulations indicate that the period can be later amended (extended, shortened, terminated) subject to notification on the relevant OJEU standard form. Insurance Services DPS The DPS should be set up using the restricted procedure and some other conditions as set out in Regulations 28 (Restricted Procedure) and 34 (Dynamic Purchasing Systems) of the Public Contracts Regulations 2015).

DPS at CCS Following registration to the online Supplier Registration System for the specified procurement opportunity, the supplier is required to review and confirm compliance with the Supplier Access Agreement (SAA). The SAA references key documentation/ information such as: - CCS DPS Terms and Conditions - Levy etc. The supplier will complete the selection questionnaire (SQ) via the online platform. The SQ consists of standard SQ questions (Parts 1 3) and procurement specific questions and services/goods filters - the final part of the SQ (known as the DPSQ). The overall process is shown right.

DPS Application at CCS & Further Reference simpler, quicker process for suppliers to apply flexibility, enabling suppliers to join at any time as opportunity remains open for the lifetime of the DPS. choice and solutions for a broad range of customers, creating a competition shortlist from an intelligent filtering system support SME suppliers that can provide important specialist services to the public sector agility to meet Central Government and Wider Public Sector changing needs HSCN Network services CCS has a number of DPS agreements live (with a pipeline of further agreements planned) Fleet Vehicle Conversions Research Marketplace Standby and Portable Generators https://www.youtube.com/watch?v=cngu3vHP7ug CCS has produced an end to end DPS video