Captive Financial Examinations of Insurance Companies

The Michigan Department of Insurance and Financial Services is requesting proposals for pre-qualified contractors to provide captive insurance company financial examinations under RFP No. 260000002069, with proposals due June 22, 2026 at 5:00 p.m. EST. This is a panel procurement: the RFP establishes a pre-qualification pool; DIFS will issue second-tier competitive solicitations to qualified firms as specific examination needs arise, with approximately three weeks per assignment and delivery within five months of examination start dates.

The scope covers financial examinations of captive insurance companies licensed in Michigan, including complete examinations or targeted testing on selected data. DIFS currently oversees 27 captive companies with anticipated growth, expecting an average of two to six examinations per year over the next five years. Examination findings and work papers are due within 10 calendar days of on-site completion; finalized reports within 14 calendar days thereafter. Key personnel must include certified public accountants familiar with Michigan captive insurance laws and must comply with strict confidentiality requirements under Michigan Insurance Code Section 222(4). Contractors must maintain independence from examined entities; failure to comply results in contract cancellation.

Contractors utilizing subcontractors for more than 20 percent of deliverables must award at least 20 percent of subcontracted work to Michigan-based Geographically Disadvantaged Business Enterprises, unless exemption justification is provided. The DIFS will consider Service-Disabled Veteran-Owned Business preferences.

The contract is effective November 1, 2026, through October 31, 2029, with options for up to three additional two-year renewals at the State's sole discretion. Pricing must be firm for the entire contract term; all staffing assignments and hourly rates must be fully loaded to include travel costs. The State requires commercial general liability insurance of $1 million per occurrence, professional liability (errors and omissions) of $3 million per occurrence, and $5 million umbrella or excess liability per occurrence.

Technical proposals are evaluated on four equally weighted criteria (25 points each): Requirements and Statement of Work, Project Plan and Delivery, Organizational Chart and Pricing, and Vendor Questions Worksheet. Only proposals receiving 80 or more technical points will have pricing evaluated. Proposals are irrevocable and binding for 180 calendar days. Written questions were due May 29, 2026; answers are posted by June 8, 2026. Contact Darcie Payne at 517-930-9402 or payned3@michigan.gov.