Local government reorganisation decisions are expected in March 2026 for the Devolution Priority Programme (DPP) and July 2026 for all other two-tier areas, with a vesting day deadline of 1 April 2028 at the latest. As part of the DPP, some mayoral elections will be held in May 2026, others in May 2027.
The reorganisation programme will turn more than 200 councils in England into just 50 or so unitary authorities. While some county councils will effectively retain control, most regions will see the county landscape split two or more ways.
Reorganisation will experience different authorities coming together, each with their own risk profiles, insurance arrangements and claims histories. Ahead of the key milestone for authorities – March 2026 for those in the DPP and July 2026 for all other two-tier areas – insurance and risk managers can take advantage of the upcoming renewal season to ensure the right groundwork.
Good quality data can provide valuable insight into the risk profile of existing authorities and how these differences will shape new authorities.
Detailed risk information is increasingly important in the current market, with insurers offering the best terms to authorities that provide this insight. Factor in your reorganisation data requirements as you prepare for renewal to get ahead.
Start by reaching out to contacts across your organisation. Reorganisation brings uncertainty and often leads to higher levels of turnover and the loss of expertise and invaluable historical knowledge. Set up working groups and encourage information sharing and collaboration.
A priority to explore now is the quality of your organisation’s data. Well cleansed and formatted data will be much easier to combine with data from other authorities to present a total picture of the new authority.
The clearer the combined data set is, the easier it will be for insurers to understand the risk across the new organisation and provide the best possible terms when you tender for its insurance programme ahead of April 2028.
Don’t forget to check out existing long-term agreements your organisation has in place. It’s likely that some of these will end before the new authority is operational. Linking in with your procurement team to ensure they are happy with any extension proposals is essential. It will be easier to explore your options now, before the government announces its reorganisation decisions and preparations ramp up.
Diarise July 2026 or March 2026 for those in the DPP. Once the government announces its decisions on the shape of new authorities, your insurance and risk preparation can move to the next stage. This involves bringing together all the data and modelling the risk and insurance requirements for the new organisation.
Ahead of that key milestone, these are our tips on how you can take advantage of the upcoming renewal process to prepare for reorganisation:
- Add detail to the data - information such as property valuations, construction data and insight into risk management strategies can unlock better terms at renewal but also in 2027 when you come to tender for the new authority’s insurance.
- Build in greater granularity - reviewing and in some cases redesigning databases now will make it easier to cut data to fit new authorities. This could be a simple exercise, such as adding in a data field outlining the location or district of a property asset or claims incident.
- Cleanse the data - ideally organisations should have ten years of data to enable claims analysis and inform the new insurance programme. Cleansing the data now will remove anything spurious and highlight any gaps.
- Review claims data - make sure claims data is held electronically. Include as much detail as possible so it can be used in a future tender exercise or to shape risk management strategies for the new authority.
- Assess long term agreements and alternative arrangements - some of your organisation’s LTAs will end before April 2028. Some contracts can be novated or extended on a short-term basis. Explore options with your broker or insurer and work with procurement to secure approval for any course of action you take.
- Share knowledge - build contacts across your organisation and beyond. Set up working groups now and collaborate with key figures to better understand the risk profile of your authority, and that of neighbouring ones.
- Use your broker and insurer - your broker or insurer can be a great contact. They will have experience of supporting authorities through the reorganisation process and can share their insight.
Look out for Aon’s article, Talking insurance challenges in local government reorganisation in November stronger, to find out more on this topic.
