The Director of Resources reported upon the formal study which had been commissioned to examine the adequacy of existing sums set aside to meet self-insured liability claims and to make recommendations as to the level of future contributions to the Insurance Fund. The Study had now been completed by the Council’s Insurance Brokers (JLT Speciality Limited) and, whilst the Director was happy to provide Members with a copy of the full technical document on request, she presented a summary of its conclusions. It confirmed that the self-evaluation of liabilities undertaken by the Insurance Team since 2010 had been accurate and indicated the level of contribution required for 2014/2015, which had been incorporated into the Insurance Fund Budget. It recommended that funding of £9,166,800 should be in place at 31 March 2014 to cover losses incurred up to and including that date. However, the Director estimated that the Fund would have a balance of approximately £10m at 31 March 2014, which represented a surplus of approximately £800,000, the retention of which would provide the Council with the option to use it to cover continuing environmental liabilities arising from the transfer of the Council’s housing stock.

Resolved –

(1)  That contribution to the Liability section of the Insurance Fund be set at £1,615,000 for 2014/2015.

(2)  That the projected surplus in the balance of the Insurance Fund at 31 March 2014 be retained.