Exclusive: Insurers aren't interested in big risks, says council

The UK's second-largest council, Manchester City Council , has made a late call for the provision of its entire book of insurance contracts.

A council spokesman told Insurancetimes.co.uk that after an "unsatisfactory" renewal round with its existing insurers, it has appointed broking giant Aon to place its business. Existing insurers include Norwich Union, Zurich and AXA.

The council's property and liability policies cost £2m premium every three years - the council is now keen to reduce this.

He said: "Some of the big insurers we used to deal with have quoted up to £8m for the same policy. Only Zurich have offered a realistic renewal. The big insurers just don't seem interested in taking on the big risks.

"This is very worrying because we may have to cut this cost by increasing exclusions which could affect employers' liability cover."

He added: "We used to renew our policies out of loyalty more than anything else but since Aon was appointed we have realised just how slow insurers are in cutting rates."

He added that while Zurich Municipal hold the majoity of its book, Chubb and Norwich Union are now in line to secure a large section of its insurance contracts.

The total value of its current policies are estimated to generate a total annual premium of £3.1m. The council's property, liability, motor, vehicles, engineering and personal accident insurance is available under the tender.

Interested parties should contact George Pinderby Mar 7, 2003 at: