Premier and Minister of Finance Paula Cox responded to comments made today [Oct 19] by the Shadow Finance Minister Bob Richards regarding cost savings on Government’s insurance.
Speaking at a press conference today, Mr Richards said: “Bermuda is one of the world’s three risk capitals, yet the government pays a huge $12 million annual insurance bill the old fashioned way.
“An OBA government would use Bermuda based risk management expertise to significantly lower this cost. Government has paid lip service to this idea but, in dithering for so long, they’ve wasted millions of dollars in insurance premiums. We would expedite this idea forthwith,” said Mr Richards.
Premier Cox said she was “puzzled as to why the One Bermuda Alliance was attempting to showcase an original Government idea and programme which was already in place and pass off as one of their own.”
The Premier said:”Though we welcome Bob Richards’ remarks today about saving money on the Government’s insurance bill, I would refer him and the people of Bermuda to my comments given in the House of Assembly on March 16, 2012.
‘Mr. Chairman, we continue to investigate ways to find efficiencies and realise further savings. One such example is a pending review of the structure of all of Government’s insurance programmes, with the possibility of forming a captive or other opportunities for cost savings on Government’s $13 million insurance bill.
With property assets of over $2.5 billion and revenues of over $900 million, the Bermuda Government is by far the largest risk in Bermuda. Insurance purchased currently includes property, public liability, personal accident, motor fleet insurance, marine fleet insurances and professional indemnity.
‘The Government currently engages an insurance broker with respect to any and all of Bermuda Government’s portfolio of insurances. Some governments choose to self-insure many or all of their asset and liability risks. Aside from most infrastructure assets, at this time the Bermuda Government does not self-insure.
But, Mr. Chairman, in order to reduce Government’s insurance costs, the Government sought proposals from qualified insurance professionals for the review of, and advice on, the structure of all its insurance programmes. An RFP was sent out seeking a suitably experienced and qualified team to lead in the request for the insurance review and advice, and a successful service provider has been selected.’
Premier Cox concluded, “In short, we’ve already acted on this and countless other efficiency plans that have and will save the people of Bermuda millions of dollars. And we will continue with our plans to make the Government more efficient.
“Since March, there has been action and demonstrable progress. They say imitation is the most sincerest form of flattery so I guess it is a compliment that the Opposition wishes to take a leaf out of our book to distract from their lack of real solutions for Bermuda. That said, we thank the opposition for their endorsement of our actions.”
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- Bob Richards Responds: Insurance Premiums | Bernews.com | October 22, 2012