Home ContractsIndependent Insurance Claims Handling Services

Independent Insurance Claims Handling Services

WAC ID:30674

Public SectorAward noticeClosed32014L0024

Source:	Find a Tender Service (FTS)
Notice Type:	Award notice
Buyer:	Financial Services Compensation Scheme
Main Category:	Services
Procurement Method:	Award procedure without prior publication of a call for competition
Method Rationale:	FSCS has awarded the contract to Western Mortgage Services Limited (WMSL) under Regulation 32(2)(b)(ii) of the Public Contracts Regulations 2015 on the basis that the services can only be provided by that firm as competition is absent for technical reasons and no reasonable alternative exists. This is for two principal reasons. Specifically, this contract is for Independent Insurance Company Limited (in liquidation) (“IICL”) insurance run-off claims handling for FSCS in the context of FSCS carrying out its public law statutory function. It is a technical exercise requiring a unique set of knowledge and skills and not simply an administrative or straightforward claims handling. The complex and bespoke nature of the service (and vulnerable nature of individuals benefitting from it) means that a particularly experienced and skilled cohort of staff is essential for the delivery to the required quality standards. FSCS does not consider that it would be possible for any other provider to develop sufficient skills and knowledge nor to recruit and train sufficiently qualified staff within an acceptable time period, leading to an unacceptably long transition period, given the initial contract term of only two years. Such a long transition period would have an adverse effect on timely meeting of claims and risk destabilising service provision. FSCS therefore considers that to award the contract to an alternative provider would lead to an unacceptable degree of risk to performance of the services and FSCS being able to discharge its statutory duties. The documentation and data required for the ongoing work is held across a number of platforms, some dating back many years and incompatible with current technology. The firm appointed needs full access to, and ability to use, all such documentation and data as it relates to FSCS “protected claims” to carry out the work. As a result, the identification, conversion, extraction and migration of the relevant data to a state and platform which would be usable by any service provider other than this company (or an associated company) would be so complex, time-consuming and costly as to be prohibitive. In addition, aspects of the arrangement are subject to confidentiality obligations to which FSCS is not a party, adding further complication. All of FSCS’s requirements for this service are objectively justified by the nature, complexity and context of the services, factors relating to the individuals making the relevant claims, the way in which documents and data are held and the existence of third party confidentiality arrangements to which FSCS is not a party. The absence of competition is not the result of an artificial narrowing of the parameters of the procurement and no reasonable alternative exists. It is not reasonable to relax any of the above requirements as this would expose FSCS and its customers to an unacceptable degree of risk.

🤝 Need a consortium or subcontracting partner?

SMEs & Primes team up to win opportunities like this. Find partners on the board.

Find partners →

Award outcome

Awarded to

Western Mortgage Services LimitedGB-FTS-135400

Award status:

Active

Contracting Authority

Organisation

Financial Services Compensation Scheme

Description

Handling of FSCS protected claims in respect of Independent Insurance Company Ltd.

About Financial Services Compensation Scheme

Published contracts in the last 12 months

total contracts

£25.0m

total value

£2,273,005

average contract size

Typical categories

Education and training servicesIT services: consulting, software development, Internet and supportBusiness services: law, marketing, consulting, recruitment, printing and security