Examinations of insurance companies

The South Carolina Department of Insurance, through the State Fiscal Accountability Authority's Office of State Procurement, is seeking to establish a pool of qualified contractors to perform comprehensive financial examinations, targeted financial examinations, and market conduct examinations of South Carolina-licensed insurance companies, health maintenance organizations, captive insurance companies, and risk retention groups. The solicitation requires contractors to conduct these examinations in accordance with National Association of Insurance Commissioners (NAIC) standards, with specific mandatory qualifications including Certified Financial Examiner (CFE) designation and minimum five years of experience auditing insurance companies. Hourly rates for examination services are capped between $145 and $200 per hour, depending on the specialist's role and certification level, with positions ranging from Administrative Examiners to Supervising Examiners and specialized roles like Investment Specialists and Forensic Accountants. The contract period is estimated to run from September 7, 2022, to September 6, 2024, with one optional one-year renewal term, and multiple vendors are expected to be awarded contracts. Key submission deadlines include online offer submissions through www.procurement.sc.gov, with rolling bid review dates of February 21, 2025, October 6, 2025, and a final due date of October 5, 2026, and all offers must be accompanied by a paper copy submitted to the procurement office in Columbia, South Carolina.

No specific set-aside designations for disadvantaged enterprises are mentioned in the solicitation documents. Vendors must meet stringent qualifications, including maintaining current insurance with A.M. Best ratings of no less than A:VII and complying with all information security requirements. Subcontractors are not permitted, meaning contracted firms must perform all work with their own staff. Vendors are required to provide a Service Provider Security Assessment Questionnaire and demonstrate experience with complex insurance examination topics such as life insurance and annuity-related issues. While no specific incumbent vendors are listed, the solicitation indicates that the South Carolina Department of Insurance will select contractors from the established pool as specific examination projects arise. Though no exact total contract value is specified, the hourly rate structure and potential for multiple ongoing examinations suggest a potentially significant procurement opportunity. Travel expenses will be reimbursed in accordance with state policy and NAIC rates, providing additional financial consideration for selected contractors.