Questions and Answers 19KE5021R0002 AOPE ver.pdf

Group Life Insurance Pre-Proposal Conference February 22,2021 Question & Answer

Question 1. With reference to the conference this morning and our interest to participate in the

RFP, we wish to request for the 3 years claim experience to enable us to share a competitive bid.

Answer: See exhibit A- table 2 Solicitation Amendment SF30- mod 0001.

Question 2. Amount of Employee Life insurance – please explain part C2.1.1 since employees’ salary amounts are different and they all are of different ages – this indicates that every employee has his/her own individual premium

Answer: This refers to the death benefit coverage payable on account of natural death.

Employee premiums will be computed based on the pricing table quoted under B.6.1.

Question 3. Is the premium for death due to accident and natural death expressed in a single amount as the benefit is the same?

Answer: Natural Death and Accidental or Work Related Death are different See B.6. and should be priced separately.

Question 4. Could you please advise in C.2.1.1, C.2.1.2, C.2.1.3 about the amount of the allowance mentioned?

Answer: The said parts indicate the basis for calculating the benefit levels. Reference exhibit A for additional data.

Question 5. What is meant by term – Fixed retention amounts

Answer: See solicitation document B.7. Administrative Retention Amounts for a detailed explanation.

Question 6. In order to submit an offer, we need the date of birth for each employee additional to her/his salary range. If you cannot provide any personally identifiable information, please provided in the a listing of employees (without names) sorted by gender, age range and salary / salary range

Answer: See exhibit A and B Solicitation Amendment SF30- mod 0001

Question 7. The development of life insurance rates for a group of this size is dependent on understanding date of birth, gender, occupation, and annual salary of each employee. Since coverage is a function of salary our overall rate would be higher if the older employees had the higher salaries and conversely the overall rate would be lower if the opposite were true. We feel that since your current insurance company has access to this information we would be at a disadvantage unless we had it also.

Answer: See exhibit A and B Solicitation Amendment SF30- mod 0001.

Question 8. Would you please disclose the name of your current insurer?

Answer: APA Insurance

Question 9. Has there been any change of benefits covered for the last 5 years?

Answer: No

Question 10. Please provide a census list with all the dates of birth, genders and annual salaries for each current employee.

We ask this because the development of life insurance rates for a group of this size requires a proper appreciation of the risk profile.

We ask for salary data because the benefits are a function of the individual’s salary. It follows that our group rate would be higher if the older employees all had the higher salaries and conversely would be lower if the opposite were true. Without it, we are left with making assumptions and since your current insurer has access to this information, we would be at an unfair disadvantage unless we had it too.

Answer: See exhibit A and B Solicitation Amendment SF30- mod 0001.

Question 11. Please provide three years of loss data by year of account including three years net premium, incurred claims and membership history. For membership history please provide the number of Employees at the end of each year. Please do not include any confidential information, just the overall statistics for the group. Claims information is critical to our pricing and the relationship of claims to employee growth or shrinkage is part of the claims analysis. We feel that since your current insurance company has access to this information we would be at a disadvantage unless we had it also.

Please provide the loss data for the current policy year and date at which those claims were last reported, plus at least the three prior years of loss data by year of account.

All claims should be individually itemized detailing date and cause of the person’s death or disability plus the benefit paid.

Please also provide the corresponding membership history, detailing the number of employees at the beginning and end of each policy year.

Finally, please confirm whether there have been any changes to the benefit structure (i.e new benefits added / change in salary multiple etc.) over this period.

Claims information is critical to our pricing as we need to analyze the relationship of claims to a fluctuating group profile. Without it, we are left with making assumptions and since your current insurer has access to this information, we would be at an unfair disadvantage unless we had it too.

Answer: See exhibit A and B Solicitation Amendment SF30- mod 0001. There has not been any changes to the benefits structure during the current contracting period.

Question 12. Please describe the requested “disability” coverage in section C.2.1.4 Accidental or work related death/disability

Answer: Statement C.2.1.4 adequately describes the required coverage. Please provision appropriately.

Question 13. What should be expressed in the columns “Premium (per 1,000) of Salary” and column “Total”?

Answer: The premium rate per employee, per category of insurance per quarter. The offeror should provide an algorithm (per 1,000 of salary) that will be used to compute the premium payable for each employee. See B.6.1, B 6.2, B 6.3, B 6.4 and B 6.5.

Question 14. Is the premium expressed per employee?

Answer: Yes.

Question 15. Is the premium for death due to accident and natural death expressed in a single amount?

Answer: The amount of benefit for natural death is not the same as the amount of benefit for accidental death. See section B.6.

Question 16. Please confirm the Request for Proposal (RFP - 19KE5021R0002 Group Life and

Disability Insurance Services ) is open to both Insurance Brokers and Insurance Companies

Registered by Insurance Regulatory Authority (IRA) ?

Answer: Brokers are allowed to participate in the solicitation with the legal certifications/authorizations.

Question 17. Kindly confirm the below vital details that will aide us in sharing a quotation.?

EXHIBIT

Number of staff

Estimated Total Annual Salary Kes.

(Please confirm the estimated annual salary amount)

A 558

B 6

Question 18. Kindly assist with the following;

1. Salaries details to enable us quote

2. Claims ratios for the last 3 years

Question 18. I represent …….(DUNS: 945922404) and specialize in providing health and life insurance solutions for individuals and employees of all nationalities. We have implemented solutions for governments (US Fed & foreign), Embassies, universities, schools, international missions etc.

We are working on providing a solution for the solicitation (Life and Disability Insurance for

Locally Employed Staff of the U.S. Embassy in Nairobi Solicitation Number: 19KE5021R0002) and would appreciate the following clarifications:

1. Claims history for each type of coverage a) Life Insurance b) Accidental Death & Work

Related and c) Disability for the last 5 years 2020, 2019, 2018, 2017, and 2016. It is standard practice in the insurance industry (and in other Department of State insurance solicitations) to provide this information to ensure equal/fair opportunity for all offerors in an open solicitation. See exhibit A and B Solicitation Amendment SF30- mod 0001-table 2.

2. Do the above claim numbers include claims from ORE, Peace Corps & other employees under the Rider Category? See section C.2.3.3 and C.2.4. See Exhibit B- Table 5

3. Average insured member counts for the last 5 years 2020, 2019, 2018, 2017, and 2016. It is standard practice in the insurance industry (and in other Department of State insurance solicitations) to provide this information to ensure equal/fair opportunity for all offerors in an open solicitation. See exhibit A and B Solicitation Amendment SF30- mod 0001-

Table 1 can be used to represent the average data for the last 5 years.

4. Life Insurance rate computations for the salary based benefits defined in the solicitation at minimum require a) age b) gender c) nature of work and d) annual salary. Please complete the attached census file; please note there is personal information being requested. It is standard practice in the insurance industry (and in other Department of

State insurance solicitations) to provide this information to ensure equal/fair opportunity for all offerors in an open solicitation. See exhibit A and B Solicitation Amendment

SF30- mod 0001- Table 3

5. Funeral benefits are described in Section C.2.1.3 but there is no place for it in the price table in Section B. Please clarify. Funeral Benefits are not separately priced. The premiums provided in the pricing table under section B should include a component for the funeral benefit.

6. When is this plan likely to commence? (Plan is likely to commence by April 15, 2021).

Please note it is standard practice in the insurance industry (and in other Department of State insurance solicitations) to provide the above information to ensure equal/fair opportunity for all offerors in an open solicitation. Armed with the census details, prior benefits, claims and premium history (or loss ratios) the incumbent supplier can adjust the quotes to remain profitable. Since we are not aware of the premium history, prior benefits and loss ratios, we are currently at a big disadvantage for developing competitive rates for your group. I trust you will provide us the clarifications and give us a reasonable amount of time to design our offer after the information has been made available to all offerors. See exhibit A and B Solicitation

Amendment SF30- mod 0001- Table 2