Insurance Broker and Captive Management Services for the State's Risk Management Program

The Tennessee Treasury Department is requesting proposals for insurance broker of record and captive management services for the State's Risk Management Program under RFP 30901-65626, with technical responses and cost proposals due November 2, 2026, and contract award anticipated December 15, 2026.

The scope encompasses placing comprehensive insurance coverage through traditional commercial markets (aviation, terrorism, fine arts, government crime) and managing the State of Tennessee Captive Insurance Company, which was established in 2022 with $17 million in initial capitalization and provides all-risk property insurance, equipment breakdown/boiler and machinery coverage, and cyber liability insurance. The contractor must deliver annual binders for commercial policies by June 30 (effective July 1), reinsurance coverage binders by September 30 (effective October 15), and cyber liability binders by June 30 (effective July 1). The State maintains a $35.6 billion insured-value portfolio and is self-insured for casualty losses with deductibles of $7.5 million for wind and $10 million for earthquake and flood. The Captive is domiciled in Tennessee under Department of Commerce and Insurance oversight.

Required qualifications include at least ten years' experience placing insurance for all required lines, five years' experience in captive management services, five years' experience accessing reinsurance markets, and experience managing large captives with total insured values comparable to the State's portfolio.

Compensation consists primarily of commissions from insurance carriers at prevailing market rates, with commission payments made net of insurance premium payments, plus up to 500 hours annually of professional risk management consulting services at rates specified in the cost proposal. The initial contract term runs through February 28, 2031, with renewal options at the State's discretion. The incumbent broker, Aon Risk Services South, Inc., will continue day-to-day support through transition dates. A pre-response teleconference is scheduled for October 7, 2026, and written questions are due October 19, 2026. Evaluation weighting: general qualifications (10 points), technical qualifications and approach (50 points), oral presentations for finalists on November 18–19 (10 points), and cost proposals (30 points).