5000003050 Fiduciary Insurance Brokerage Services

The California State Teachers' Retirement System (CalSTRS) is issuing a Request for Proposal (RFP) Number 5000003050 for Fiduciary Insurance Brokerage Services, seeking qualified firms to design, develop, and market a custom fiduciary liability insurance plan. The primary objective is to continue CalSTRS' existing fiduciary liability program, which currently provides $100 million in total limits, including $75 million in traditional coverage and $25 million in non-indemnifiable loss coverage with a $25 million retention. The selected broker will work under the Office of the General Counsel to assess insurance needs, recommend appropriate coverage levels, market the plan to insurers, and negotiate policy terms. Proposals must be submitted electronically by November 18, 2024, at 2:00 p.m. Pacific Time, with a contract term of up to three and a half years and potential two one-year extensions. Evaluation criteria will include the firm's ability to design a comprehensive insurance solution that reflects CalSTRS' excellent loss history and high reputational standards, with proposals being assessed on technical approach, qualifications, experience, and fee structure. The RFP indicates that CalSTRS may enter into negotiations and request a best and final offer from the highest-scoring proposer prior to contract award.

The solicitation includes preference programs for small businesses, disabled veteran business enterprises (DVBE), and target area contractors, providing opportunities for diverse vendor participation. While specific budget ranges are not explicitly disclosed, the RFP notes that the current fiduciary brokerage services fee will not be revealed to maintain a fair and competitive process. CalSTRS has not experienced losses exceeding the $25 million retention since 2015, which may be an attractive factor for potential brokers. The non-indemnifiable loss coverage is integrated into the overall $100 million program and is not a standalone offering. Proposing firms will need to demonstrate significant expertise in designing fiduciary liability insurance solutions for large public retirement systems, with a comprehensive understanding of risk management and insurance market dynamics. The solicitation suggests a sophisticated procurement process that prioritizes strategic insurance planning and vendor capabilities over pure cost considerations.