Public insurance tenders: how to draw up clear and comparable specifications
For public and semi-public entities, managing insurance cover requires a delicate balance between operational needs, regulatory compliance and economic sustainability. An imprecisely structured insurance tender can generate offers that are difficult to compare, gaps in cover and problems in the future management of contracts.
For this reason, the quality of the technical specifications is one of the most important elements of the entire tender procedure.
An insurance tender is not just a request for a price
One of the most common mistakes is to draw up calls for tender that are too generic or standardised, focusing mainly on the insurance premium.
In reality, every entity has specific characteristics that must be clearly reflected in the tender documentation:
- type of activities carried out
- property portfolio and infrastructure
- liability exposures
- staff management
- vehicle fleets
- sensitive or critical services
- public events and institutional activities
Without a precise description of the risks and insurance needs, insurers may interpret the requirements differently, producing offers that are difficult to compare with one another.
Technical clarity reduces grey areas
Well-drafted technical specifications allow all potential bidders to start from the same information base, improving the transparency and quality of the quotations received.
Precisely defining:
- the cover required
- limits of indemnity
- deductibles
- extensions
- exclusions
- operating procedures
helps to reduce ambiguous interpretations and future problems in the management of contracts.
The aim is not only to obtain competitive offers, but to ensure that the cover is genuinely consistent with the entity’s risks.
Analysing the existing portfolio before the call for tender
Before setting up a new insurance tender, it is essential to carry out an in-depth analysis of existing policies and claims.
This phase makes it possible to:
- identify any gaps
- check for overlapping cover
- update limits that are no longer adequate
- assess how risks have evolved
- build a sounder technical basis for the tender
An accurate preliminary analysis improves the quality of the procedure and also makes it easier to evaluate the offers received.
Truly comparing offers
Receiving several offers does not automatically mean being able to compare them effectively. In insurance, seemingly minor differences in clauses can significantly change the actual level of protection.
For this reason, it is important to analyse not only:
- the premium
- the deductibles
but also:
- the exclusions
- the limits of cover
- the special conditions
- the technical quality of the clauses
A thorough evaluation enables the entity to take more transparent and informed decisions, reducing the risk of future problems.
Structured management also protects in the long term
The award phase is only one part of the process. Effective management continues after the policies have been taken out, through monitoring, updating of cover and assistance with claims handling.
For public and semi-public entities, building a clear insurance strategy means protecting not only assets and operational activities, but also the continuity of the services provided to the community.
Article written by:
Loïc Dubied
Deputy Head of Communication & Marketing CH, MSc in Business Administration HSLU