Executive Chair Update - 6 January 2022
Published: 6 January 2022
Since becoming operational in 2015 all of MedCo’s operational/audit/accountancy etc. services have been provided by the Motor Insurers Bureau (MIB).
It was always intended that our operations and governance would be reviewed after 5 years. The review, by independent consultants, was completed in the Autumn of 2020 and a number of recommendations were made.
The two most important recommendations were actioned during 2021, namely;
- To appoint independent NEDS to the board with particular individual expertise in operations and finance.
- To approach the MIB with a view to negotiating a new contract.
MedCo’s primary aims in implementing these changes were to reduce annual costs and ensure future sustainability in the current economic climate, as well as continuing to provide services to Users of the highest standard in the most cost effective manner.
Last summer the MIB gave formal notice to terminate the existing contract with MedCo on 31st December 2021.
With the assistance of independent consultants, MedCo completed a project of identifying/interviewing/appointing reputable alternative suppliers to provide Accountancy, Audit and HR services. This process was successfully completed much earlier than expected and MedCo/MIB agreed that the effective date of transfer of services would be brought forward to 1st December 2021.
A number of staff dealing with day to day operations at the MIB directly transferred to MedCo and are now based at our new offices in Shenley Pavilions, Shenley Wood, Milton Keynes. This was the first time that MedCo had directly employed any staff.
Grant Thornton were appointed to undertake our User audits and members of the existing MIB/MedCo audit team transferred accordingly. Additional independent suppliers were appointed to undertake our accounts and HR services.
It was not necessary to change the MedCo portal or accreditation scheme suppliers as these have never been operated by the MIB.
Despite the capital expenditure of contracting for and fitting out new offices, installing IT systems, estimating all third party supplier/direct costs and other outgoings for 2022, the MedCo board of directors are pleased to announce that they will be able to implement significant reductions to the current annual fees to be applied in April 2022 for MROs. Formal notices with details of the 2022 charging policy will be sent to Users shortly.