RFP 17-PR-CFO-20
Property and Casualty Insurance Brokerage Services
Attachment A
Statement of Work
A.1. SCOPE OF WORK
DC Water desires to qualify insurance brokers to potentially market and service its Property and Casualty Insurance policies as deemed necessary by the Authority, including but not limited to :
•Property and time element (including boiler and machinery, equipment);
•Flood;
•Cyber liability and breach response;
•Pollution/environmental;
•Excess liability insurance;
•Workers’ compensation and employers’ liability;
•Employment practices liability;
•Public officials’ liability;
•Crime and fidelity; and
•FIduciary liability.
Such services shall include assistance with preparing coverage specifications, insurance applications and underwriting data; identifying and negotiating with insurers for the most favorable terms; offering recommendations with respect to coverage; ensuring timely issuance and verifying adequacy and accuracy of coverage documentation, premium computations and invoicing; and providing general claims advocacy and administrative services.
A.2.PROCESS OVERVIEW
DC Water intends to qualify up to four (4) brokers for potential participation inits insurance procurement process. DC Water seeks a one (1) year contract commitment, subject to annual renewal, with options to extend for two (2) additional annual periods. Qualification does not guarantee that the DC Water will use a broker’s services. The services of each qualified broker will be used at the discretion of DC Water. DC Water may also negotiate and purchase directly with direct-writing insurers where permitted.
If a broker’s contract is cancelled, or not renewed, the placing broker will be obliged to service all policies that were placed by such broker, unless otherwise directed in writing by the Authority.
A.3.MULTI-YEAR INSURANCE APPROACH
DC Water believes that multiple-year broker and insurer relationships are more effective and administratively efficient over the long run. DC Water generally intends to maintain coverage with its insurers for a period of three (3) years as long as the insurers offer renewal terms that are deemed competitive with insurance market conditions and acceptable to DC Water and its independent Risk Management Consultant.
Where feasible based on market breadth, DC Water anticipates a multiple broker assigned market competition on a given line of coverage no more than once every three (3) years. It is anticipated that successive years will involve the successful broker from the competition will handle the lines of insurance that they were initially awarded. However, DC Water reserves right to use the services of other Qualified Brokers from this RFP process as it deems appropriate and beneficial to remarket successive renewals.
If multiple brokers are involved in the marketing process for a single line of insurance, the selected brokers will be requested to provide a list of insurance company preferences. DC Water would then assign insurance markets equitably to avoid the potential of two (2) brokers approaching the same insurer. Generally, no more than two (2) qualified brokers would be involved on a specific line of coverage. Insurer assignment would be based on expressed preference by each broker and strength of market relationships.
No proposer is authorized to approach any insurance company on behalf of DC Water until such authorizations are communicated in writing.
Multiple year policy terms should be proposed where available. If multiple-year policy terms are unavailable, incumbent brokers shall be required to provide a written renewal strategy recommendation at least 120 days in advance of each policy’s expiration. Such recommendation shall include the broker’s assessment of insurance market conditions and renewal premium expectations from the incumbent insurer. Either DC Water will then authorize renewal negotiations with the incumbent insurer, or alternatively, a re-bid of its insurance through the incumbent qualified broker and/or other brokers qualified through this RFP process.
A.4.AUTHORITY’S CURRENT INSURANCE PROGRAM
A summary of DC Water’s current insurance program is attached as Exhibit 1 for reference purposes.
A.5.BROKER MINIMUM QUALIFICATIONS
DC Water has established procedures and criteria for the designation of qualified insurance providers. The following is a description of that process.
Minimum Standards
Insurance Providers must meet the following minimum standards to be considered:
•Licensed as an insurance producer/broker within the District of Columbia;
•Have at least twenty (20) technical/professional staff members;
•At least $50 million of Property & Casualty (P&C) commercial lines premium volume for 2016;
•Demonstrate experience with handling public sector or water utility clients;
•Have at least ten (10) clients with P&C commercial lines premium of at least $1,000,000 each; and
•Represent at least one (1) insurer with which $10 million of P&C commercial lines premium is placed annually.
Those insurance providers meeting the minimum standards outlined above are invited to submit a response to this RFP. DC Water and its selection committee will review the written responses and select the successful Respondents.
A.6.QUALIFICATION OF BROKERS
DC Water will use the written results of this RFP, interview results (DC Water at its sole discretion will determine whether or not interviews will be conducted), references, market accessibility, specialized area(s) of expertise and other information to qualify brokers. Those brokers selected may qualify for one (1) line of insurance coverage or several. Qualification does not assure that DC Water will use the broker’s services.
The proposal should indicate the program/coverage areas for which the respondent wishes to be considered. Each of the separate service components (property, casualty, workers' compensation, executive risks) will be evaluated (i) on a segregated basis by line of coverage and (ii) on the merits of the combination of coverage lines. DC Water reserves the right to qualify insurance providers for specific lines of coverage or a combination thereof.