RFP – Agency Solicitation Specifications Page 1 of 6

RFP26006446

AGENCY SOLICITATION SPECIFICATIONS

INSURANCE BROKER AND CONSULTING SERVICES

SECTION A. BACKGROUND

The State of Rhode Island’s (State) Office of Risk Management (ORM) safeguards state assets, employees, and operations by identifying, managing, and mitigating risks that could impact public services. ORM provides centralized oversight of the State’s insurance programs, claims administration, enterprise risk management practices, and training to support agency partners. A strong risk management system ensures that taxpayer resources are protected and that state agencies can serve Rhode Islanders effectively and safely. Currently, ORM oversees more than $4.5 billion in Total Insured Value (TIV) for State-owned property. ORM is seeking commission-based proposals to serve as the State’s insurance broker.

SECTION B: SCOPE OF WORK AND REQUIREMENTS

The Department of Administration (DOA) is seeking a partner to provide expert advice and serve as the State’s insurance broker, responsible for the design, implementation, and administration of appropriate risk financing using traditional insurance programs. The State Department of Administration (DOA) is seeking a partner to provide expert advice and serve as the State’s insurance broker, responsible for the design, implementation, and administration of appropriate risk financing using traditional insurance programs. The broker will advise ORM on methods of protecting the assets of the State and the values insured from catastrophic loss including risk transfer, catastrophic modeling, loss control, and any other suggested methods; and manage the placement of insurance for the State, including the property reinsurance program. The broker will market, manage, and service the existing coverages, as well as any coverages added in the future, present competitive quotes and recommendations, place the coverage, and service the coverage each year.

The broker will negotiate directly with insurance providers on behalf of and at the direction of ORM or support ORM in negotiation planning and execution of policy agreements as requested.

Additional Services shall be performed on an “as needed” basis and include assisting the State in understanding its insurance needs and explaining the market conditions.

The selected Proposer shall provide comprehensive brokerage, consulting, and advisory services in support of the State’s insurance and risk management programs. Services shall include, but are not limited to, the following:

1. General Advisory and Risk Management Support

1.1. Serve as an extension of the State’s risk management function by providing ongoing professional support, guidance, and consulting services to protect the State’s assets and operations on behalf of its citizens and taxpayers.

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1.2. Act as an independent advisor, providing unbiased recommendations in the best interest of the State.

1.3. Provide timely responses to all State inquiries, with a standard response time not to exceed forty-eight (48) hours.

2. Program Review and Risk Analysis

2.1. Review, analyze, and evaluate the State’s insurance programs, including property and casualty exposures, claims data, coverage forms, and program structures.

2.2. Identify and recommend risk transfer, risk financing, and loss prevention opportunities to improve program efficiency and effectiveness.

2.3. Conduct exposure analysis, catastrophic modeling, property inspections, and Probable Maximum Loss (PML) studies, as necessary.

2.4. Advise the State on property valuations, Schedules of Values, and provide risk management consulting to enhance the State’s property risk profile.

3. Insurance Placement and Market Engagement

3.1. Serve as broker of record for part or all of the State’s insurance programs. Commissions shall not exceed a pre-determined and agreed upon percentage, as described in the cost proposal section below, per participating party involved in placement. The commissions greater than the agreed percentage shall be refunded to ORM or credited to the premium billed.

3.2. Develop, market, and place cost-effective and comprehensive insurance coverages in support of the Statewide insurance program.

3.3. Identify, evaluate, and solicit competitive coverage options, programs, products, and markets that meet the State’s coverage requirements, limits, deductibles, and retentions.

3.4. Act as an advocate for the State in communications and negotiations with domestic and international insurers and intermediaries, including the negotiation of favorable premiums, fees, deductibles, and policy terms.

3.5. Develop and implement strategies to generate and maintain competitive market interest in the State’s insurance programs.

4. Quotation, Binding, and Documentation

4.1. Deliver market quotations and recommended coverage programs by established deadlines and in formats specified by the State.

4.2. Upon authorization, bind coverage and provide accurate binders and confirmations.

4.3. Ensure that all coverage documents are complete, accurate, and consistent with negotiated terms.

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4.4. Provide detailed placement and coverage data, including markets, policy numbers, layers, limits, premiums, taxes, fees, and commissions, in a format acceptable to the State.

5. Applications, Renewals, and Vendor Oversight

5.1. Lead the preparation and submission of coverage applications and related reports to underwriters, syndicates, and insurers, subject to State approval.

5.2. Prepare, complete, and submit all documentation required for policy renewals.

5.3. Ensure timely placements and renewals with reputable insurers and require vendors to consolidate coverage into a consistent renewal schedule.

5.4. Collaborate with the State to establish vendor requirements, including early-warning procedures for anticipated rate changes, coverage modifications, renewal issues, and exposure changes.

5.5. Implement and enforce pre-renewal strategy requirements, including early reporting on anticipated terms, market conditions, problem areas, and recommendations.

5.6. Initiate marketing, bidding, or broker-of-record changes when performance requirements are not met.

6. Claims and Loss Management Support

6.1. Oversee the collection, analysis of loss data, and evaluate loss exposures to determine appropriate risk management alternatives.

6.2. Provide annual loss runs for each policy.

6.3. Coordinate with third-party administrators (TPAs) on controlled lines of coverage to streamline claims processing.

6.4. Conduct quarterly claims reviews and manage authority requests for claims exceeding established thresholds.

7. Reporting, Recordkeeping, and Administrative Support

7.1. Track, maintain, and manage comprehensive policy records, including endorsements, coverage changes, premium adjustments, and over-authority requests.

7.2. Maintain accurate documentation of all active insurance policies and related transactions.

7.3. Support the State’s invoicing, budgeting, and departmental communications by providing accurate and timely insurance-related data.

7.4. Serve as liaison between the State and insurers and keep the State fully informed of all matters affecting coverage.

7.5. Respond in a timely manner to all coverage-related questions from the State, policyholders, and underwriters, and obtain clarifications as necessary.

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SECTION C: PROPOSAL

1. Technical Proposal

Narrative and format: Bidders must submit a technical proposal which addresses each of the following elements and is limited to six (6) pages (this excludes any appendices and as appropriate, resumes of key staff that will provide services covered by this request):

A. Staff Qualifications – Provide staff resumes/CV and describe qualifications and experience of key staff who will be involved in this project, including their experience in insurance brokerage and policy management, particularly with large enterprises or government entities.

B. Capability, Capacity, and Qualifications of the Vendor – Please provide a detailed description of the Vendor’s experience as an insurance broker or expert consultant. List a minimum of three (3) relevant client references, to include client names, addresses, contact names with emails and phone numbers, dates of service and type(s) of service(s) provided.

C. Work Plan – Please describe in detail, the framework within which requested insurance services will be performed. The following elements should be included:

reporting, data analytics, procurement solutions, and others as relevant.

D. Approach/Methodology – Define the methodology to be used for the analysis of State insurance coverages and go-to-market/ procurement strategies, as well as all elements of client management, data, and reporting.

2. Interview/Demonstration

Vendor will make brief presentation of their proposal, including methodology and relevant prior experience, and respond to evaluation team member’s questions.

3. Cost Proposal

This contract shall be compensated through a commission paid by non-State parties involved in the placement of insurance. Bidders shall submit their cost proposals based on the maximum percentage of commission they will receive for services provided under this contract. The proposed commission rate shall represent the highest percentage the Broker will charge for any line of insurance and shall remain fixed for the term of the contract, unless otherwise approved in writing by the State.

The cost proposal should include a capped commission for the following categories of insurance coverage:

• Master Property Policy

• Railroad

• Excess auto liability

• Medical malpractice

The State will then take a blended average of the overall commission for these lines to assess the relative rate.

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The State shall not reimburse the Broker for travel, lodging, meals, or other ancillary expenses.

Compensation paid to the Broker for each line of insurance shall equal the proposed percentage fee multiplied by the actual premium cost of that line of insurance.

For each line of insurance purchased, the Broker shall provide the State with an original written quotation from the applicable insurance company, reinsurance company, or intermediary. Each quotation shall disclose:

• The gross premium charged by the insurer;

• Any negotiated discounts or deductions;

• The commission payable to the Broker; and

• The net premium payable for the coverage.

When applicable, the Broker shall provide a written accounting disclosing the amounts, nature, and sources of all commissions and related compensation.

4. Supplemental Bidder Attestation Form

See Appendix A on the “Overview” tab in Ocean State Procures™ for information. Vendors are required to complete, sign and submit this form with their overall proposal.

5. ISBE Proposal

See Appendix B on the “Overview” tab in Ocean State Procures™ for information and the MBE, WBE and/or Disability Business Enterprise Participation Plan form(s). Vendors are required to complete, sign and submit these forms with their overall proposal. Please complete separate forms for each MBE, WBE, and/or Disability Business Enterprise subcontractor to be utilized on the solicitation.

SECTION D: EVALUATION AND SELECTION - SOLICITATION SPECIFIC

Technical proposals must receive a minimum of 40 (80%) out of a maximum of 50 points to advance to the interview phase. Technical proposals scoring less than 40 points shall not have the accompanying cost or ISBE participation proposals opened or evaluated; such proposals shall not receive further consideration.

The Technical Proposal and Interview must receive a combined minimum score of 56 (80%) out of a maximum of 70 points to advance to the Cost Proposal and ISBE Proposal phase. Technical Proposal and Presentation/Demonstration scoring less than 56 points shall not advance to the Cost or ISBE participation Proposal phase and shall not have the accompanying Cost or ISBE Participation Proposals opened and evaluated. The proposal will be dropped from further consideration.

Technical Proposal and Interview/Demonstration scoring a combined total of 56 points or higher shall be evaluated for Cost and assigned up to a maximum of 30 points in the cost category, bringing the potential maximum score to 100 points. As total possible evaluation points are determined, vendor ISBE proposals shall be evaluated and assigned up to 6 bonus points for ISBE participation.

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Proposals shall be reviewed and scored based upon the following criteria:

Criteria Possible Points

Technical Proposal

Staff Qualifications 5 Points

Capability, Capacity, and Qualifications of the Vendor 15 Points

Work Plan 10 Points

Approach/ Methodology 20 Points

Total Possible Technical Proposal Points 50 Points

Interview/Demonstration

Interview 20 Points

Total Possible Technical Proposal & Presentation/Demonstration Points

70 Points

Cost Proposal

Cost proposal

30 Points

Total Possible Evaluation Points 100 Points

ISBE Participation 6 Bonus Points

Total Possible Points

106 Points

Additional evaluation criteria can be found at:

• For those with an OSP account, see the “Requirements” tab of this solicitation in OSP for additional information on the evaluation and selection process in the “RFP Standard Specification” section.

• For those without an OSP account, public access to the full bid can be found at https://ridop.ri.gov/vendors/bidding-opportunities. Search for this solicitation, open the record, click on the “Print/Download Solicitation Summary” button in the upper right corner for all the solicitation requirements and supporting documents are found at the bottom of the page in the “Solicitation Attachments” section.

https://ridop.ri.gov/vendors/bidding-opportunities

SECTION D: EVALUATION AND SELECTION - SOLICITATION SPECIFIC