Insurance Pilot Study

Contract summary

Industry

• Financial consultancy services - 66171000

Location of contract

Any region

Procurement reference

tender_288989/1008572

Published date

25 October 2021

Closing date

22 November 2021

Contract is suitable for SMEs?

Yes

Contract is suitable for VCSEs?

Yes

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Description

We would like to reserve the right to withdraw the PIN/ Early Engagement. We are seeking specific expertise within the market with the potentiality to go out to market via an open process.

The Green Finance Team at Environment Agency have secured funding to carry out a pilot study titled 'Monetising Insurance Benefits of Flood Alleviation Schemes' (the Study) to evaluate the insurance-related financial benefits of Flood Alleviation Schemes in England.

The Environment Agency seeks to appoint a Consultant to carry out the Study.

The Study will evaluate two flood schemes in England viz. Bridgwater Tidal Barrier and Leeds Flood Alleviation Scheme Phase 2.

Further information regarding these flood schemes can be found here:

Bridgwater Tidal Barrier: https://www.sedgemoor.gov.uk/article/2489/Strategic-Flood-Risk-Documents ; https://www.sedgemoor.gov.uk/bridgwaterbarriertwao

Leeds Flood Alleviation Scheme: https://www.leeds.gov.uk/emergencies/flooding-advice/how-were-reducing-the-risk-of-flooding/leeds-flood-alleviation-scheme

The Study involves developing evidence base to quantify the financial benefits with a view to develop risk-based approaches to creating new and innovative financial mechanisms and revenue streams.

The appointed Consultant will be expected to carry out the following tasks:
-Use specialised Natural Catastrophe Modelling (NatCat Models), the baseline and post-intervention flood risk profile.
-Use the modelling outputs to develop the technical premium price (pre and post-intervention) using specialised actuarial and underwriting expertise.
-Calculate the financial value of value of reduction in flood risk exposure whilst incorporating the impact of future climate change into the analysis
-Using the financial value thus calculated, identify beneficiaries and explore financial instruments and mechanisms to capture and monetize the benefits.
-Using a project finance approach, the Consultant shall formulate financial model(s) to present the financial benefits of the capital investments including (but not limited to) financial parameters such as internal rate of return, net present value etc.

The Consultant shall help the Client to identify and engage with potential investors upon verification of the technical, economic and financial feasibility.

The Consultant shall provide knowledge and training to the Client for capacity building on technical, legal and policy matters required to implement the aforementioned financial mechanisms and revenue streams.

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More information

Additional text

The Consultant is expected to be a firm, or a group of firms, or a consortium of individuals, with preferably previous project experience related to:
- Natural Catastrophe Modelling and insurance risk pricing (actuarial services);
- Transaction advisory services for public infrastructure investment projects - including working with Governments and private investors.

In order to determine the capability and experience of Consultants to be shortlisted, the information submitted should include the following (if we decide to go out to the open market):
- Company/group of firms' profile, organisation and staffing (max. 2-4 pages).
- Details of previous project experience or similar assignments particularly undertaken in the previous five years, including information on contract value, contracting entity/client, project location/country, duration (mm/yy to mm/yy), expert months provided (if different from duration) , main activities, objectives.
- CVs of key experts who could carry out the Study whilst detailing qualifications, experience in similar assignments, particularly assignments undertaken in the previous five years, including information on contracting entity/client, project location/country, duration (mm/yy to mm/yy), expert months provided, assignment budget, main activities, objectives.

This is a 12 month contract.

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About the buyer

Address

Horizon House
Bristol
BS1 5TL
England

Email

pippa.hicks@environment-agency.gov.uk