As 1st April 2028 approaches, LGR represents a massive operational challenge. Merging distinct authorities into a single unitary authority is highly complex. For shadow authorities, this transition period is especially demanding as you must consolidate years of varying data from multiple sources, each with its own structure, systems, and quality.
From an insurer's perspective, this transition period - and the initial lack of consolidated, uniform data - makes accurate risk assessment exceptionally difficult. Without a clear and cohesive data picture, underwriters are faced with uncertainty. This uncertainty can lead to cautious, defensive pricing to account for unknown risks.
However, high-quality, transparent data is your most critical asset. When you present a clear, unified, and accurate picture of all your risks, it gives underwriters the confidence they need to offer you competitive terms.
Futureproofing your data: From excel to excellence
The benchmark for what constitutes "good data" is a constantly moving target. While spreadsheets are a fundamental tool, their effectiveness hinges on how well the data is structured. A well-organized Excel workbook, with clear, consistent data fields, can be a powerful asset. The key is to ensure your data is structured, complete, and easily analysed.
The risk landscape is changing rapidly. The industry is increasingly employing advanced data modelling and AI-driven analytics to assess everything from climate risk to liability trends. While securing the budget for new technology is rarely easy, insurance and risk teams are uniquely positioned to build the business case.
By actively influencing your wider council to invest in modern, dynamic, and structured data systems today - while ensuring your current Excel data remains clean and well-structured in the interim - you not only prepare for the 2028 tenders but also "pay it forward," empowering the new unitary authority to succeed in an increasingly data-driven world.
The real-world cost of poor presentation: Good vs. bad data
The contrast between good and poor data presentation directly dictates tender outcomes. During an LGR tender, you are not just presenting data; you are telling the story of multiple authorities coming together. Here is what "good" versus "bad" looks like in practice:
|
Aspect |
Good data presentation |
Bad data presentation |
|
Property schedule |
A single, merged schedule with a column identifying the legacy authority for each asset. Full address details (including postcodes), construction type, occupancy, and up-to-date valuations provided. |
Multiple, unmerged spreadsheets from legacy councils with inconsistent formats, missing postcodes, or outdated valuations. |
|
Claims history |
A single, ground-up claims listing for all legacy authorities over a 5–7 year period. Each entry clearly details the original council, the cause of the claim, status (open/closed), payments, reserves, and the applicable policy excess for the relevant year. |
Summarised tables with no individual claim detail, missing cause-of-loss details, or claims data that doesn't align with the confirmed experience from previous insurers. |
|
New responsibilities |
Data for newly acquired responsibilities (e.g., waste management, new housing stock) is clearly segmented, detailed, and mapped to the new authority's structure. |
Vague or missing data for new service areas, leaving underwriters to guess the overall exposure. |
The insurer's perspective: Why it matters.
In every scenario, the underlying equation is simple: Certainty drives competitive pricing.
- With Good Data: Underwriters can run highly accurate flood, fire, and accumulation models. This clarity eliminates guesswork, allowing them to offer broader cover and their most competitive premium rates.
- With Bad Data: A lack of detail forces underwriters to make conservative, worst-case assumptions to protect against unknown risk exposures. This directly results in higher premiums, increased deductibles, or restrictive cover exclusions.
Ultimately, poor data quality forces underwriters to ask extensive clarification questions, which is time-consuming during an already stressful period. Leaving data consolidation to underwriters will almost certainly result in less competitive terms.
Engage early, engage often: The value of insurer days
"Insurer days" ahead of a tender are a powerful tool. In challenging times like LGR, it is a bold and credible move for a shadow authority to host one. It provides an invaluable forum to:
- Demonstrate your strategy: Showcase your data management approach - where it is now, and your vision for the future.
- Reduce clarification questions: Proactively address potential queries and reduce friction during the formal tender process.
- Share successes and context: Explain the structure of the new authority and provide context to the data that numbers alone cannot convey.
- Build relationships: Foster a collaborative partnership approach with insurers and brokers alike.
This open and proactive engagement gives underwriters confidence in your management of the transition and clarifies the data journey you will undertake together from 1st April 2028.
Your path to success: Planning for a data-driven future
Given the complexity of LGR, early and proactive market engagement is your most effective strategy. This means starting the process of collating and validating your data now. This is not just an administrative task; it is a strategic imperative. By prioritising data quality, you are not just preparing for a tender; you are building the foundation for a more resilient and insurable authority. This committed approach turns a compliance exercise into a strategic advantage.
As this article has shown, the benefits of getting this right are clear and tangible. By presenting insurers with a high-quality, transparent, and complete picture of your new authority, you empower them to offer their most competitive terms. This directly translates into better value for the public purse and a stronger, more sustainable insurance partnership for the future.
We understand that it takes time to build good data and that changes don’t just happen overnight. But the best time to start is now. We encourage you to start this process immediately and to lean on the expertise of your broker and insurer partners to help guide and support you through this transition.
Three key takeaways for your LGR journey
- Consolidate and cleanse your data now: Start the process of merging property schedules and claims data from all legacy authorities immediately. Create a single, unified dataset with a clear field identifying the original council and details like claim causes and excesses.
- Host a pre-tender "Insurer day": Be proactive. An insurer day allows you to tell your story, explain your data, and demonstrate the competency of your new management team. This builds the confidence needed for insurers to bid competitively.
- Influence and use your partners: Build a strong business case to influence your council to invest in modern data systems. In the meantime, leverage your insurance broker and incumbent insurer partners early to understand their exact data requirements and shape your presentation.