Award

Independent Insurance Claims Handling Services

FINANCIAL SERVICES COMPENSATION SCHEME

This public procurement record has 1 release in its history.

Award

17 Jan 2025 at 14:05

Summary of the contracting process

The Financial Services Compensation Scheme (FSCS) has completed the procurement process for Independent Insurance Claims Handling Services, awarding the contract to Western Mortgage Services Limited. This contract focuses on the insurance services industry and is specifically for handling FSCS protected claims for the Independent Insurance Company Ltd., which is in liquidation. The contract, valued at £4,005,600, was signed on 12th December 2024 and is set to run until 31st March 2027, with options to extend the term for up to two additional 12-month periods. The procurement was conducted through a limited procedure without prior publication due to the absence of competition for technical reasons, ruling out other alternatives.

This tender creates significant opportunities for businesses specialising in complex and bespoke insurance claims services. Companies with experienced and skilled staff capable of handling intricate claims and managing historical and technically challenging documentation would be well-positioned to compete in similar future contracts. The awarded contract underlines the importance of possessing unique technical knowledge and capabilities, as well as the ability to navigate the intricate requirements and confidentiality obligations associated with FSCS's statutory functions.

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Notice Title

Independent Insurance Claims Handling Services

Notice Description

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

Lot Information

Lot 1

For the provision of claims handling services in relation to IICL

Procurement Information

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.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-04d43f
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/001714-2025
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Limited
Procurement Method Details
Award procedure without prior publication of a call for competition
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

66 - Financial and insurance services


CPV Codes

66510000 - Insurance services

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
£4,005,600 £1M-£10M

Notice Dates

Publication Date
17 Jan 20251 years ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
12 Dec 20241 years ago
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Cancelled
Awards Status
Active
Contracts Status
Active

Contracting Authority (Buyer)

Main Buyer
FINANCIAL SERVICES COMPENSATION SCHEME
Contact Name
Not specified
Contact Email
procurement@fscs.org.uk
Contact Phone
+44 2073758194

Buyer Location

Locality
LONDON
Postcode
EC3A 7QU
Post Town
Central London
Country
England

Major Region (ITL 1)
TLI London
Basic Region (ITL 2)
TLI3 Inner London - West
Small Region (ITL 3)
TLI35 Westminster and City of London
Delivery Location
Not specified

Local Authority
City of London
Electoral Ward
Portsoken
Westminster Constituency
Cities of London and Westminster

Supplier Information

Number of Suppliers
1
Supplier Name

WESTERN MORTGAGE SERVICES

Open Contracting Data Standard (OCDS)

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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