Public private partnerships (PPP), which were originally pioneered by the UK and Australian governments in the 1990’s, are now widely used in many countries globally. Typically, they are a method whereby private companies are contracted to build and manage public sector projects on a long-term basis using private funding.
This use of private finance, as well as the need for public and private entities to share risk over a long period, has generated a number of risk issues associated with this type of project procurement.
Our team leads the market in PPP advice, insurance placement and utilises our scale and expertise to improve the scope of the insurance programme while creating efficiencies which include cost and administration. JLT first launched a dedicated PPP project team in 1995, followed by the establishment of a team devoted purely to handling portfolios of operational PPP assets in 2001.
In 2008 we recognised the importance of providing expert advice to project funders by creating a separate lenders’ due diligence advisory team to work exclusively with financiers. Our work on PPP over more than 20 years has seen us develop a leading position in this important area of procurement, both in terms of quantity and complexity of contracts. Indeed in recent years, JLT has designed an insurance programme for one of the largest and most complicated PPP project in North America.
WHAT WE DO
JLT provides insurance broking, risk management and claims consulting services to large and international companies involved in PPP projects globally.
- 42% Education
- 36% Healthcare
- 17% Roads and infrastructure
- 5% Public facilities
Our dedicated PPP offering incorporates three key stages which include 1) Bid Development Phase, 2) Construction Phase and 3) Operations Phase & Grantor Handover.
We utilise our scale and expertise to improve the scope of the insurance programme and create efficiencies for PPP projects on behalf of our clients. Our team has complete knowledge of project related finance issues and has the ability to work with all parties in order to achieve optimum risk transfer for the entire concession period.
Our experience enables our clients to leverage our deep understanding of PPP projects, whose unique risks often require unique solutions. These include:
Tailored insurance solutions to meet the individual contract, financing and scope of the project
Contractual risk management and allocation advice for each phase of the concession period
Seamless whole project solutions and coverage certainty offering a single, long-term seamless risk solution for the construction and initial operational phases (six years+)
Extensive buying capacity with the market enables us to arrange longer term and high limit coverage where necessary
Cash flow analysis to develop innovative approaches with carriers that satisfy the client’s financial needs and improving cash flows and/or liquidity
Revenue protection solutions for complex phased revenue risks over both construction and operational exposures
Benchmarking to determine what is possible in the market, what has been done before, and provides solutions based on the strength and depth of our construction team and the volume of projects we work on each year
The ‘portfolio effect’ in JLT being the pioneer broker, and market leader, of portfolio solutions for operational PPP projects, helping our clients achieve economies of scale to secure competitive terms and a broad scope of cover.