06 April 2007
The first local authority insurance company to be formed in more than a century opened for business this week.
The London Authorities' Mutual Limited comprises ten London boroughs and is backed with funding from the London Centre of Excellence. It was established in response to concerns about the limited number of local government insurance providers and the difficulty that councils have in securing best value for their insurance premiums. Ownership is mutual and underwriting profits are retained for the benefit of member authorities rather than paid out to shareholders.
Nathan Elvery, chair of the LAML's board of directors and borough treasurer at Croydon, said: 'The LAML is without precedence and represents a fresh injection of competition in the market. It's underpinned by a robust business platform and subject to a tough regulatory framework.'
Ken Cole, director of the London Centre of Excellence, added that the project showed how well local authorities could work together.
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