First Fire & Rescue Service Insurance Mutual opens for business

FRAML, which opened for business from 1 September 2007, is owned and run solely for its members' interests. So far nine FRAs have signed up. FRAs face similar pressures on budgets as the rest of local government and this initiative is driven by the need to achieve efficiencies.

Obtaining insurance cover through a mutual is a well-practiced route to market in many countries across the world, especially in Australasia and the USA.

Liz Barron, Firebuy's Chair said:  "Setting up FRAML is yet one more area where Firebuy is actively pursuing real savings and improved standards for the benefit of FRAs, firefighters and the people they serve. FRAs already signed up to FRAML are to be congratulated for looking to the future and seeing this as another opportunity to contribute to the modernisation of the FRS"

David Howells, chairman of FRAML's board of directors and also director of Corporate Services for Hampshire FRA added:

"This initiative started when a handful of FRAs recognised the potential for some economies of scale if FRAs collaborated when obtaining insurance cover. We believe that forming our own mutual companion on a national scale will deliver the greatest savings in the longer-term. It is fair to say that participating members are fairly risk-adverse and didn't enter into this lightly but we now have approval from the Financial Services Authority and look forward to our first year of operation."