The Audit and Risk Management Committee considered the report of the Head of Financial Services and Acting S151 Officer that provided a review of the Risk and Insurance activity during 2015/16 and the plans for 2016/17 and beyond. The report detailed the underwriting arrangements and recent loss histories for the principal areas of insured risk and described the impact of measures taken to improve their management. The provisions and reserves within the Insurance Fund at the end of 2015/16 were also confirmed.

The Head of Financial Services  informed the Audit and Risk Management Committee that the rate of receipt of new Public Liability claims had continued to fall, with overall costs reducing accordingly - the exception to this had been in 2012/13 which was  the result of two large claims.

The Committee noted that annual reassessment of the Insurance Fund (sums held in respect of uninsured liability risks and to pay for risk improvement measures) had been broadly in line with the estimate and that the credit balance in this Reserve at the end of March 2016 was therefore not required and had been returned to the General Fund balances for 2015/16. Members also noted that the Risk and Insurance Services had also achieved an operating surplus and this too had been returned to the General Fund balances for 2015/16. Members were asked to endorse the release of the budget surplus and operating surplus as detailed in the report (paragraph 3.45).

The Head of Financial Services brought the Committee’s attention to the key tasks and targets for Insurance Management 2016/17 and beyond, and informed that regular reports on the progress would continue to be presented to the Audit and Risk Management Committee as part of its regular work programme.

Resolved - That

1)  the report be noted;

2)  members endorse the release of monies from the Insurance Fund to the General Fund as follows:

i)  The release of the budget surplus of £82,993 to the General Fund;

ii)  The release of the operating surplus of £268,947 to the General Fund; and

3)  the Insurance Fund Budget 2017/18 be prepared for presentation to the Audit and Risk Management Committee in January 2017.