RFP for Insurance Agency_Brokerage Services.pdf

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Request for Proposal

Insurance Agency/Brokerage Services

Issue Date 8 January 2024

Issued by City of Ellsworth, Kansas 121 West 1st Street PO Box 168 Ellsworth, KS 67439

Inquiries Callie Haxton City Clerk 785-472-5566 chaxton@ellsworthks.net

Proposals Due 4:30 pm (Central) on 8 February 2024 mailto:chaxton@ellsworthks.net

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TABLE OF CONTENTS

Introduction……………………………………………………………………………………….3

General Information………………………………………………………………………………3

Guidelines…………………………………………………………………………………………4

Eligibility………………………………………………………………………………………….6

Response…………………………………………………………………………………………..7

Evaluation and Timeline…………………………………………………………………………11

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1. Introduction

The City of Ellsworth is seeking qualified and experienced insurance agencies brokerages to submit proposals for comprehensive insurance services. As a vibrant and growing community, Ellsworth is committed to ensuring the protection of its assets and resources.

The selected agency will play a crucial role in providing expert guidance and tailored insurance solutions to safeguard the City's interests. The City’s current insurance program includes property and casualty and associated lines, crime, fiduciary, and cyber‐liability.

Workers Compensation insurance is currently managed by our partner Kansas Municipal Insurance Trust (KMIT). This Request for Proposals (RFP) invites qualified firms to showcase their capabilities and propose innovative and cost-effective insurance strategies that align with the unique needs and challenges of the City of Ellsworth.

Nestled in the heart of Kansas, Ellsworth stands as a testament to the resilience and enduring spirit of the American Midwest. Established in 1867 along the banks of the Smoky Hill River, Ellsworth boasts a rich history shaped by the cattle-driving era and the expansion of the railroad. Once a bustling hub on the historic Chisholm Trail, the City witnessed the comings and goings of pioneers and cattle drivers, leaving an indelible mark on its character. Over the years, Ellsworth has evolved into a close-knit community with a population that currently hovers around 3000 people. The City’s annual budget, a reflection of its commitment to sustainable growth and community well-being, stands at $ $3,2 million and over 30 full-time employees. This budget underscores Ellsworth's dedication to maintaining essential services, fostering economic development, and preserving the unique heritage that defines this charming Midwestern enclave. As Ellsworth continues to embrace its historical roots while looking toward a vibrant future, the city remains an inviting home for residents and a destination that proudly showcases its storied past.

2. General Information

This Request for Proposal (“RFP”) provides guidelines for the submission of proposals to provide independent, responsible, and qualified insurance agency/brokerage services to the City. The City intends to select one respondent to act as the City’s insurance agent and broker but reserves the right to select multiple respondents as semifinalists to participate in a competitive market selection process as described in Section 3‐D. The City intends to issue a contract for one year, with an option for the City to extend the contract for up to two (2) additional one‐year periods, however, the term of the Agreement is not guaranteed and is subject to annual renewal and termination as provided in the contract

4 | R F P f o r I n s u r a n c e A g e n c y / B r o k e r a g e S e r v i c e s document. The City’s agreement with its current insurance broker expires March 31, 2022. Broker will comply with applicable regulatory requirements, federal, state, and local laws, rules, regulations, orders, codes, criteria, and standards, including but not limited to K.S.A. 44‐1030.

3. Guidelines

a. Contact with City of Ellsworth Employees

To ensure a fair and objective evaluation of all proposals, questions or inquiries about this RFP must be submitted by email to Callie Haxton, City Clerk, chaxton@ellsworthks.net.

b. Costs of RFP Preparation and Submission

Each respondent shall be responsible for all costs incurred to prepare and submit a response to this RFP (a “proposal”). Each respondent is solely responsible for all costs associated with respondent’s participation in the selection process, including but not limited to, preparing a proposal, interviews with the City, and conducting due diligence. This includes any costs of travel and accommodation for respondent’s personnel.

Respondents may withdraw their proposals by notifying Callie Haxton via email at any time prior to the deadline for submission and the proposal may either be destroyed or returned to the respondent. After the deadline for submission, proposals become a record of the City and will not be returned. Upon opening, proposals are subject to public disclosure in accordance with Kansas law.

All proposals and supplementary materials will, upon opening, become the property of the City. Even though a respondent’s proposal may be rejected, the City reserves the right to utilize any concept or idea contained therein, without incurring any liability. The City reserves the right to share any proposals and supplementary materials submitted with City staff, other respondents, consultants, and members of the public in order to secure an informed opinion.

c. Interviews mailto:chaxton@ellsworthks.net

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During the evaluation and selection process, the City may, at its discretion, require any one or more respondents to make oral presentations and participate in interviews with City staff. Such interviews will provide respondents with an opportunity to answer any questions the City may have about a respondent's proposal. Not all respondents may be asked to participate in interviews.

Respondents asked to participate in interviews must be prepared to answer detailed questions about their proposal, trends in the insurance market, and risk management issues associated with Kansas public entities. Respondents shall bring the necessary personnel to present on all aspects of their proposal.

Respondents may also be required to provide written clarifications of their proposals, presentations, and interview responses at the request of the City.

d. Negotiation and Contract

The City reserves the right to: (1) accept or reject any and all proposals and waive any technicalities or irregularities therein; (2) cancel the RFP process at any time prior to entering into a formal, written contract for services; (3) reject the response of a respondent that does not submit a proposal to the City’s satisfaction; all respondents agree that rejection shall create no liability on the part of the City because of such rejection. (4) select one or more respondents which, in the City’s opinion, are the most advantageous to the City; and (5) negotiate any and all terms of the proposal.

By submitting a proposal in response to this RFP, the respondent certifies that it has not divulged to, discussed, or compared its competitive proposal with other respondents and has not colluded with any other respondents or parties. Any prices and/or cost data submitted has been arrived at independently without consultation, communication, or agreement for the purpose of restricting competition.

The City envisions entering into a contract with the selected respondent, offering the most advantageous proposal. However, the City reserves the right to engage multiple respondents in distinct, parallel contract negotiations to finalize each respondent's respective offering. The City is seeking to issue a contract for an initial term of two (2) years, with subsequent renewals subject to the approval of the City Council. This anticipated term is not guaranteed and is contingent upon annual renewal, with the option for the City to extend the contract for up to two

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(2) additional one (1) year periods, subject to approval by the City Council. The initial term is expected to commence on April 1, 2024, and conclude on March 31, 2026, with subsequent annual extensions subject to approval by the City Council and in accordance with the contract terms.

This RFP is not an offer to contract or otherwise enter into any type of agreement (express, implied, or otherwise). No contract or agreement is binding until proposals are reviewed and accepted by the City, the contract terms are negotiated, and the final agreement is approved by the City’s governing body and executed by both parties. The City reserves the right to further negotiate all terms of the proposal.

4. Eligibility

To be eligible for consideration as the City's insurance broker, respondents must meet the following minimum requirements:

a. The respondent must be an established legal entity, licensed and authorized to do business in the State of Kansas.

b. The respondent must identify an individual who, if selected, will be designated as the primary broker (“Primary Broker”) on the City’s account. The Primary Broker must maintain a Kansas property and casualty agency license.

c. Have the ability to cooperate with and be in good standing with the Kansas Insurance Department.

d. The respondent must have direct access to the following first dollar, public entity insurance carriers:

i. Berkshire Hathaway

ii. EMC Insurance

iii. OneBeacon Governmental Risk

iv. Travelers

In addition to these carriers, respondents should also showcase access to other reputable insurance entities, thereby emphasizing a comprehensive network and the ability to source coverage from a variety of respected providers. This broader representation of insurance relationships will enhance the respondent's capacity to offer a diverse range of coverage options and deliver tailored insurance solutions suitable for the City of Ellsworth's unique needs.

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5. Response

a. Response Instructions and Deadline

The submitted proposal must follow the rules and format established within this RFP. Adherence to these rules will ensure a fair and objective analysis of all proposals. Failure to complete any portion of this request may result in rejection of the proposal.

Sealed proposals, comprising of one (1) original and six (6) copies shall be submitted by 4:30 p.m. on 8th February 2024, to:

Callie Haxton, City Clerk City of Ellsworth 121 West 1st Street PO Box 168 Ellsworth, KS 67439

E-mailed proposals will be considered valid submissions. Ensure that the emailed proposal is received by the specified deadline for proper consideration.

b. Proposal Outline

i. Executive Summary

Provide a concise overview of your proposal.

ii. Background and Qualifications

Describe your statewide and local service capabilities, and, with more specificity, your experience with Kansas municipalities.

Provide a description of your general capabilities including information relating to company size, revenues, and staffing.

Describe any similar services provided to other municipalities in Kansas and provide the name, years of service, and a reference for each.

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Provide a concise description of qualifications, names, relevant experience, and office location of the individuals who will provide services to the City.

Identify the Primary Broker and any other staff who will participate in the daily administration of the City’s account.

Indicate whether you meet each of the eligibility criteria listed in Section 4.

In the last five (5) years, have you had a contract for services with a public entity in Kansas terminated for cause? If so, state the date of termination, the name of the public entity, and describe the circumstances surrounding the termination.

In the last three (3) years, have you had a contract for services with a public entity in Kansas not renewed? If so, state the date of termination, the name of the public entity, and, if known, describe the circumstances surrounding the non‐renewal.

If you intend to use the services of any other insurance agencies or brokers, then you must submit this information for each and every such entity and clearly identify their role.

iii. Insurance Marketplace

List all insurance companies you would anticipate approaching to seek first dollar alternatives to the City’s current insurance program, with your top three (3) listed first. For each insurance company listed, include the following:

A. Will the company be accessed directly or via a broker or wholesaler?

B. Do you currently have any governmental accounts with the carrier? If so, identify the number of accounts and average size of the governmental entity.

C. Does the carrier offer a multi‐line “package” program? If so, note the applicable lines of coverage.

For property and casualty coverage, list all insurance companies you would anticipate approaching to seek alternatives to the City’s current insurance program, with your top three (3) listed first. For each insurance company listed, include the following:

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A. Will the company be accessed directly or via a broker or wholesaler?

B. Do you currently have any governmental accounts with the carrier? If so, identify the number of accounts and average size of the governmental entity.

C. Does the carrier offer a multi‐line “package” program? If so, note the applicable lines of coverage.

Identify the percentage of private vs. public sector lines of coverage you have written. Also provide the total property and casualty premiums placed annually for each of the last five (5) years.

For each of the last five (5) years, list the top five (5) insurers, both by number of policies and by total premiums, with whom your firm places its business.

How would you approach a key market or proprietary program if you do not have a contract with that market and they typically do not utilize a broker?

How would you handle requests from the City to negotiate endorsements, riders, limits, and policy amendments? Specifically, within the last five (5) years have you negotiated and secured for a public entity any of the following? If yes, indicate the name of the client or clients and carrier or carriers:

A. Kansas Tort Claims Act Endorsement.

B. Right to select counsel.

C. Consent to settle.

D. Aggregate deductible limit.

iv. Insurance Program

What changes, if any, in carriers, lines, coverage, limits, and/or deductibles, would you recommend the City make to its current insurance program?

If the City elected to explore switching to a self‐insured retention program, describe how you would approach constructing such a

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Does your firm offer any actuarial or other services that can be used to evaluate the feasibility of a self‐insured retention program?

What do you perceive will be the greatest risk management challenge the City faces over the next 12 to 24 months? In the next five (5) years?

How would you address a request to join or consideration of an associational program or risk pool? Do you have any conflicts of interest with any associational program or risk pool?

v. Services

The intent of this RFP is to solicit proposals from qualified respondents to provide insurance agency/brokerage services.

Describe how you would provide the following services:

A. Give the City access to the insurance marketplace.

B. Provide administrative support.

C. Work with the City to manage risk and control costs.

D. Claims Management and Inquiry Response Time.

vi. Pricing

List all costs associated with your proposed services. No additional charges (such as sales tax,transportation, travel, out‐of‐pocket expenses, etc.) will be allowed unless specified on the proposal.

All brokerage commissions or ancillary fees collected by the respondent shall be fully disclosed and credited to the City against the annual broker fee.

Include costs for individual years two (2) and three (3).

Indicate whether recurring costs are flat‐rate or hourly.

Indicate whether you will agree to flat annual renewal. If not, indicate the limit of rate increase (e.g. not more than 10% per year.).

Include a proposed billing cycle/schedule.

vii. References

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Provide the name, addresses, and contact person of five (5) public and/or private groups or companies, including three (3) governmental entities, in which respondent has provided the same or similar services in the last two (2) years. Respondent should try and provide the names of governmental entities in which the Primary Broker served as the Primary Broker for that entity.

6. Evaluation and Timeline

a. Evaluation

Proposals received will be reviewed by a Review Committee. Among other criteria, the City will evaluate the following to determine the most qualified proposal:

i. Experience – The City will consider respondent’s experience and overall understanding of the City’s needs; the experience, background, and availability of the Primary Broker and his or her prior experience, including with the City, if any; and the experience and availability of support staff for such the Primary Broker.

ii. Investment – The City wishes to be good stewards of taxpayer money, so, although not the only factor, high importance will be placed on the value received for the costs associated with respondent’s proposal, including the projected costs of the City’s insurance program with respondent.

iii. Capabilities – The City will consider the capabilities of the respondent in addressing the City’s needs and the Scope of Services.

iv. Proposed Plan – The City will consider the respondent’s proposed plan for addressing the City’s insurance and risk management needs.

v. References – The City will consider the respondent’s reputation and the quality of references and similar work provided to public and private entities, particularly Kansas municipalities.

vi. Selection Process – The City will consider the overall responsiveness and quality of the proposal, including any supplemental materials, oral presentations, and interviews.

b. Preliminary Timeline

1:00 pm on 17 January 2024 Pre-Bid Meeting 8 January 2024 RFP released by the City of Ellsworth

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4:30pm on 8th February 2024 Deadline to submit RFP Proposals.

15th – 19th January 2024 Interview with potential brokers.

12 February 2024 City Council awards bid.

26 February 2024 City Council approves broker services agreement.

1 April 2024 Execution of new insurance coverage policy.

Proposals received after the specified deadline will not be accepted. The City reserves the right to request follow‐up information or clarification from all respondents under consideration.