REQUEST FOR PROPOSALS
General Insurance – Broker and Related Risk Management Services
Alberta Municipal Services Corporation
April, 2016
Contents
1 Introduction and Project Overview ..................................................................3
1.1 General Context .................................................................................................................... 3
1.2 AUMA .................................................................................................................................... 3
1.3 AMSC..................................................................................................................................... 4
1.4 MUNIX ................................................................................................................................... 4
2 Context and Service Delivery Requirements ..................................................... 6
2.1 AMSC Insurance Services Delivery........................................................................................ 6
2.2 Overall Broker Service Delivery Requirements..................................................................... 7
3 Service Requirements ......................................................................................7
3.1. Corporate Profile and Relevant Service Experience ............................................................ 7
3.2 Service Team Profile ............................................................................................................. 8
3.3 Insurance Service Capability, Marketing Strategy and Market Access ................................ 9
3.4 Risk Management Expertise and Resources ....................................................................... 10
3.5 Loss Control Expertise and Resources ................................................................................ 11
3.6 Claims Advocacy and Management.................................................................................... 11
3.7 Value Added and Other Services ........................................................................................ 11
3.8 Compensation and Fee Structure ....................................................................................... 12
4 Response Requirements................................................................................. 12
5 Selection Process and Criteria ........................................................................ 13
5.1 Selection Criteria................................................................................................................. 13
5.2 Terms and Conditions ......................................................................................................... 14
5.3 Schedule.............................................................................................................................. 15
AMSC – General Insurance: Broker and Related Risk Management Services 2
1 Introduction and Project Overview
1.1 General Context
•
The Alberta Municipal Services Corporation (AMSC) is accepting responses from qualified
service providers who can provide the services outlined in this Request for Proposals (RFP).
Please submit an electronic copy of the response to this RFP, using the Microsoft Suite or in
Pdf format, with the heading marked “AMSC – General Insurance: Broker and Related Risk
Management Services” to:
Will Burtenshaw, CAIB CIP CRM
Senior Director Risk & Claims
riskcontrol@auma.ca
Alberta Municipal Place
300 - 8616 51 Ave Edmonton, AB T6E 6E6
prior to 3:00 p.m. local time on May 20, 2016
•
Questions regarding response requirements and processes should be submitted through email to: riskcontrol@auma.ca.
•
Answers to all enquiries will be posted at: http://www.auma.ca/about-us/requestsproposals.
1.2 AUMA
The Alberta Urban Municipalities Association (AUMA) mission focuses on representing the
interests of urban local governments, and where required, providing services that address the
specific needs of members in their capacity as local governments operating pursuant to the
Municipal Government Act.
AUMA members include:
•
Regular Voting Members -- Alberta cities, towns, villages, summer villages, and special
municipalities;
•
Associate Non-Voting Members – municipally related not for profit organizations such as
municipal districts, counties, water commissions, waste management commissions,
library boards, family and community support services, and
•
Affiliate Non-Voting Members – for profit organizations.
AMSC – General Insurance: Broker and Related Risk Management Services 3
The goals of AUMA are to:
• Monitor and influence government legislation, programs and policies which impact
AUMA members;
•
Ensure effective, credible relations between member municipalities, the provincial
government and other organizations;
•
Keep members informed of significant international, national and provincial trends and
issues that affect local government, and
•
Offer relevant cost effective programs and services in response to current and emerging
member needs through the Alberta Municipal Services Corporation (AMSC).
Additional information regarding AUMA can be found on its website at www.auma.ca.
Respondents are encouraged to access this site to ensure they have a current and complete
understanding of the nature and scope of AUMA interests and activities.
1.3 AMSC
•
AMSC is a wholly owned subsidiary of the AUMA. Only regular and associate members may
participate in AMSC service offerings. The term “AMSC” in this RFP includes AUMA, AMSC,
AMSCIS, MUNIX and affiliated entities.
•
AMSC and its wholly owned affiliate AMSC Insurance Services Ltd (AMSCIS) offers general
insurance and risk management.
•
Whenever practical and appropriate, AMSC provides services through outsourcing of key
elements of its supply chain and related support services. This enables flexibility, financial
protection, effective risk management, and the ability to collaborate with the best service
providers. AMSC's core responsibilities in this outsourced framework are to provide effective:
•
Governance;
•
Contract management;
•
Marketing and communication;
•
Data protection and management;
•
Management and internal controls and procedures, and
•
Ongoing exploration of new business opportunities.
1.4 MUNIX
The Alberta Municipal Insurance Exchange (MUNIX) is a reciprocal insurance exchange
governed under the Insurance Act of Alberta. Through this mechanism a group of municipalities
and municipally related not for profit organizations have combined their resources to finance
AMSC – General Insurance: Broker and Related Risk Management Services 4
recovery from accidental losses. MUNIX provides liability, property and physical automobile
coverage effectively operating as the ‘self-insured’ foundation of the AMSC Insurance Program.
Figure one illustrates the current program structure used by AUMA and AMSC.
Figure 1 -- Organization Structure
Alberta Urban
Munciplalities
Association
(AUMA)
Alberta Municipal
Services Corporation
(AMSC)
Alberta Elected
Officials Education
Program Corporation
(AEOEPC)
Alberta Municipal
Insurance Exchange
(MUNIX)
APEX
Supplementary
Pension Plan Trust
(APEX)
AMSC Insurance
Services LTD.
(AMSCIS)
Figure Two illustrates the relationship between service providers within the Insurance Program
Figure 1 -- Customer Service Relationship
Customers
AMSC Manages
Customer Relationship
AMSC
Customer Service &
Risk Management
Broker
Industry
AMSC – General Insurance: Broker and Related Risk Management Services 5
2 Context and Service Delivery Requirements
2.1 AMSC Insurance Services Delivery
•
The AMSC Insurance Program provides optional insurance and risk management
services to all regular and associate members of AUMA through MUNIX and AMSCIS, a
registered insurance brokerage. Members who wish to participate in the AMSC
Insurance Program and MUNIX are subject to the compulsory MUNIX subscriber’s
agreement. Supplementary coverages are acquired as needed by AMSCIS Ltd. from the
commercial insurance market with the assistance of the Broker in a sub-broker
relationship. All customer-member interaction is carried out by AMSCIS personnel
unless specified/requested otherwise.
•
All AMSC programs are provided through the AMSC Edmonton office by the AMSC Risk
Services team. The Risk Services team consists of Member Services, Underwriting
Services, Claims, and Risk Management personnel. The current book of business is
comprised of 212 regular members (ie: cities, towns, villages, summer villages, and
specialized municipalities) and 550 associate members (municipally-related non-profit
and wholly owned municipally related for-profit entities such as water/wastewater
commissions, museums, social services organizations, recreational societies, and
housing associations). The current POED TIV is approximately $10.5 billion, with an
automobile fleet count of approximately 5,000 items.
•
Through the combination of the MUNIX pool, and traditional insurer products, the
AMSC Insurance Program has the capacity to meet the needs of its members with a
wide selection of coverages.
•
Automobile (Owned & Non-Owned)
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Cyber Liability
•
Property & Mobile Equipment
•
Aviation
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Equipment Breakdown
•
Owned Equipment Damage
•
Crime
•
Premises/Hangar Liability
•
Municipal Errors & Omissions
Liability
•
Special Aviation Event Liability
•
•
General Liability (& Excess Liability)
Special Aviation Exposures (i.e.
U.A.V. /Drones)
•
Wrongful Dismissal Liability
•
Construction
•
Facility User Liability
•
Course of Construction
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Special Event Liability
•
Wrap-Up Liability
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Environmental Impairment Liability
•
Surety Bonds
•
Directors & Officers Liability
•
Excess Liability/Excess Property
AMSC – General Insurance: Broker and Related Risk Management Services 6
2.2 Overall Broker Service Delivery Requirements
•
The AMSC Insurance Program provides all primary customer services to the individual
certificate holders/members except where AMSC requests the direct support of the
Broker. In many ways, the relationship is a sub-broker relationship.
•
The AMSC Insurance Program self-insures a portion of the primary insurance program
through its member-owned pool, MUNIX, for Commercial General Liability, Property,
and Automobile Physical Damage. Given this, AMSC requires a broker to investigate and
develop viable reinsurance placement options for such self-insured coverages only. All
other coverages, not self-insured, will require broker services for placement in the open
insurance marketplace.
•
The broker will be required to work closely with the AMSC Insurance Program to ensure
the program is marketed to reflect reasonable self-insurance confines that are
sustainable, cost effective and in the utmost best interest of the participating
membership. Appendix one provides a summary of the coverages currently provided.
3 Service Requirements
3.1. Corporate Profile and Relevant Service Experience
Respondents should provide the following information regarding their organization.
•
A description of the insurance brokerage including size, organization structure, areas of
specialization, staffing levels and territory of operation.
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The location of the organization’s head office and the office that would provide services
to AMSC.
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An outline of insurance brokerage experience with municipal governments,
governmental entities and not for profit organizations.
•
Provide particulars of current errors and omissions insurance, including limits. Indicate if
there have been any claims or if there is any outstanding litigation within the last 3 years
that has exceeded $5,000,000 pertaining to activities related to the placement of a
customer program. If the answer is yes, details will be requested should you move on to
the next stage.
•
An outline of the overall approach to and experience with insurance reciprocals and the
kind of relationship outlined in this RFP. In particular, please indicate your approach to
the sub-broker and customer service relationships described in this RFP.
AMSC – General Insurance: Broker and Related Risk Management Services 7
•
Three client references including contact names, phone numbers and e-mails and an
indication of the services provided to each of them.
3.2 Service Team Profile
Provide details of your proposed service team structure (names, roles/accountabilities,
experience and qualifications). Please include team member resumes and indicate the
direct relevant experience and expertise of team members in providing the brokerage
services contemplated in this RFP with specific reference to the following capacities.
•
Effective deployment of the tools and processes that will be used to monitor changes in
risk and risk management requirements, in the local government context to which this
RFP applies.
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Capacity to plan and support a complex annual renewal process.
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Broadly based experience in and capacity for accessing relevant insurance and
reinsurance markets, and dealing with the organizations active in those markets.
•
Experience in and capacity for arranging for specialty coverage, preferably in the context
of local governments and not for profit organizations as well as other AMSC lines of
service like energy and benefits services..
•
Capacity to work with AMSC to identify creative and innovative approaches to
structuring and implementing insurance and reinsurance solutions and related risk
management solutions in order to meet the complex and evolving needs of program
participants.
Proponents should also confirm they understand that:
•
Personnel may not be removed from the team without prior approval of AMSC;
•
Substitute or additional personnel may not be used for this project until approved by
AMSC;
•
AMSC retains the right to require the immediate removal of any team member;
•
The replacement for any team member who is removed from or leaves the team for any
reason must match or exceed the replaced team member in terms of skill level and
experience, and
•
Replacements are subject to AMSC approval/rejection at the time of the assignment as
well as at any time up to 21 days after the replacement begins work on the project
AMSC – General Insurance: Broker and Related Risk Management Services 8
3.3 Insurance Service Capability, Marketing Strategy and Market Access
Describe how the following services will be provided.
•
Commercial Brokerage Services – recommend, procure and manage those insurance
products deemed necessary to support the placement of the AMSC aggregated
insurance program and also specialized individual placements as required from the
commercial insurance market.
•
Market Monitoring – proactively monitor the property/casualty insurance markets
(including reinsurers) and report on trends, and their implications for the Insurance
Program, to the AMSCIS management team. Identify new product opportunities for the
membership based on evolving needs. Provide an annual stewardship report.
•
Review and Update Manuscript Policy Wording – work closely with the AMSCIS
management team to rework the current suite of policy wordings, including MUNIX, to
ensure greater consistency and accuracy.
•
Reinsurance – development of reinsurance placement options for MUNIX (self-insured
portion).
•
Renewal and Marketing – development of an overall renewal plan and strategy to
address the evolving needs of AMSC customers. Arrangement and facilitation of prerenewal meetings between AMSC management and insurers/reinsurers on an annual
basis.
•
Member RFPs and New Prospects – support AMSC in the development of timely and
effective responses to RFP’s and other procurement instruments as they emerge in the
local government, non-profit and public sector insurance market.
•
Program Analysis – ongoing review of the existing program and provision of advice
regarding changes and enhancements. Advise how to grow and evolve the AMSC
Insurance Program.
•
Special Events – AMSC occasionally requires insurance to cover special events outside its
normal core insurance program. This includes coverage for special civic events (such as
rodeos, fairs and sporting events) and specialty coverage needed by a proponent doing
business with an AMSC customer.
•
Explain how you would accommodate such requirements.
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Indicate how would you market these kinds of requirements.
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Outline your delivery standards for these kinds of requirements.
AMSC – General Insurance: Broker and Related Risk Management Services 9
Please provide information with respect to the following matters.
•
Access to Markets and Insurers -- describe the underwriting markets, insurers and reinsurers
to which your firm has access (such as through A.M. Best) and the approach used to assess
and monitor the financial stability and credit ratings of potential insurers and reinsurers.
Indicate how you think these markets will meet the needs of AMSC.
•
Marketing -- AMSC expects that purchased insurance will be marketed regularly to obtain
best coverage and pricing. Full reporting of all markets accessed and coverage available is to
be presented with the renewal terms. Describe the process you will use to market the
AMSC account. Please elaborate on your marketing strengths and capacities and how these
will meet the needs of AMSC.
•
Unique Qualifications -- describe any unique insurance related qualifications you will bring
into play for the benefit of AMSC.
•
Communications -- identify preferred methods of communication and reporting in relation
to the services contemplated in this RFP, including stewardship reporting methods and
processes. Include a template of a stewardship report .
•
Renewal Time Frames -- the AMSC Insurance Program has a January 1 renewal date and
requires submission of final renewal terms from the broker by November 15, 2016. Describe
the overall renewal plan and process for meeting these key dates.
•
Information Management -- provide details of the information management systems now
being utilized and how these will be used to support AMSC needs.
•
Specialty Markets – indicate the insurance and specialty markets with which the firm
currently holds broker agreements and binding authority as of the issuance date of this RFP.
3.4 Risk Management Expertise and Resources
Describe how you will provide the following risk management support to AMSC.
•
Risk Management Support- work closely with the AMSC senior management team to
develop, implement and communicate to the insurance and reinsurance markets AMSC
program and risk management strategies and requirements in response to the evolving
needs of members.
•
Risk Management Planning Process – work closely with the AMSC senior management
team to support the ongoing risk management planning process, including data and loss
tracking and related analysis including provision of actuarial analysis to subscribers as
required
Please provide information with respect to the following matters.
AMSC – General Insurance: Broker and Related Risk Management Services 10
•
Experience and Qualifications – indicate your risk management services experience and
qualifications.
•
Unique Attributes – describe any unique risk management related skills and
qualifications that would be used to support AMSC needs.
•
Philosophy -- describe your risk management philosophy, methodology, framework and
approach.
•
Service Delivery -- Describe the risk management services that could be made available
to AMSC and Program participants and at what cost to AMSC and/or the participant.
Indicate whether these services are in house or a contracted service.
3.5 Loss Control Expertise and Resources
•
Describe the loss control services that would be made available to AMSC and Program
participants and at what cost to AMSC and/or the participant. Indicate whether these
services are house or a contracted service.
3.6 Claims Advocacy and Management
•
AMSC manages claims for coverages which are within the MUNIX retention levels. AMSC
expects the broker to act as a claims liaison and advocate for claims which are outside of
MUNIX retention levels. Describe your approach and experience acting as claims liaison
and advocate for member claims in excess layers. Identify the processes used for claims
payments in the excess layer and how you would enable expeditious claims payments
and processes from excess markets.
•
Indicate how you would provide claims analytics on the aggregated program, as well as
individual claims experience information by member, and how you would support risk
improvement strategies suitable for the membership.
3.7 Value Added and Other Services
•
Describe any unique technological capabilities you would implement for the benefit of
AMSC including your approach to the use of enhanced data collection and analysis
processes and techniques.
•
Indicate other innovative and creative services (e.g. actuarial) which you would offer to
broaden and improve the services offered by AMSC.
AMSC – General Insurance: Broker and Related Risk Management Services 11
3.8 Compensation and Fee Structure
•
Indicate the exact method by which you expect to be compensated and the services
included within that compensation. Identify the methods by which payments are to be
calculated, including any indexing, the timing of payments, delineation of any additional
or excluded services and the costs associated with AMSC utilization of those services.
Full transparency is required regarding any contingency fees provided by insurers.
•
Payment is subject to satisfactory performance of the service requirements as set out in
the broker services contract.
•
The successful proponent will be compensated bi-annually by AMSC subject to
satisfactory performance of the service requirements outlined in this RFP.
4 Response Requirements
•
The proponent is expected to provide a transmittal letter briefly stating its
understanding of the purpose and objective of this initiative, the benefits it brings to
achievement of program objectives, and any potentially significant risks, issues or
constraints and how they would be addressed.
•
The needs of AUMA members are complex and evolving as the challenges facing service
delivery at the local level continue to become more diverse. The structure and delivery
strategy must reflect this reality.
•
AMSC owns and must continue to own and control use of all information created in the
program and\or used in the delivery of services, subject to processes and policies
governing professional practise. In the event of termination of the relationship with a
broker, however caused, AMSC is to have the full right to use all relevant software, with
broker assistance, during a commercially reasonable transition period to allow for a
seamless transition of current work product and data to another solution. This access to
software and services will be provided in exchange for reasonable fees as agreed by the
proponent and AMSC.
•
AMSC will work with the chosen service provider to design and implement performance
management strategies and goals supported by meaningful measures and performance
level agreements to ensure effective customer driven service delivery and evolution.
This will include development and implementation of effective and comprehensive
reporting processes using data relevant to service delivery measurement.
AMSC – General Insurance: Broker and Related Risk Management Services 12
•
AMSC will maintain overall accountability and control of all sales, communications and
marketing activities carried out in relation to services provided under the AMSC brand.
As previously defined the term AMSC includes AMSCIS, AUMA and MUNIX .Overall sales
and communications strategies, as well as the form and content of specific initiatives
and instruments, require advance approval from AMSC.
•
As a member driven and managed organization whose members are local governments
and related authorities subject to the Freedom of Information and Protection of Privacy
Act, AUMA operates in a fully transparent environment. Full, timely, and accurate
financial reporting and accountability are critical to all service delivery to AUMA
members through AMSC, while recognizing the need to protect commercially sensitive
and private information.
•
All data is to be located in Canada.
•
All vendor services are to be delivered in accordance with the Personal Information
Protection and Electronic Documents Act
5 Selection Process and Criteria
5.1 Selection Criteria
AMSC will give specific consideration to the following criteria in evaluating responses to this
RFP.
Criteria
Weighting
(out of 100)
Service capability, marketing strategy and market access
25
Compensation, annual fee structure and supplemental fees
20
Public sector experience
15
Expertise and experience of the service team
15
Risk management expertise and services
10
Loss control expertise and services
5
Claims handling, analytics and advocacy
5
Other value added services
5
AMSC – General Insurance: Broker and Related Risk Management Services 13
5.2 Terms and Conditions
•
Proposals must be submitted by email to riskcontrol@auma.ca with a cover page clearly
displaying (1) company name and (2) contact person's name, address, phone and fax
number, and e-mail address. Faxed submissions will not be accepted.
•
The proposal response must be signed by the person(s) authorized to sign on behalf of
the proponent or company.
•
A Professional Liability insurance policy is required for damages arising out of errors,
omissions, or negligent acts by or on behalf of the successful proponent in providing
professional services. Such insurance policy is to be in an amount not less than ten
million dollars ($10,000,000.00) for any one claim, and in the annual aggregate, or such
other amount as agreed to in writing by AMSC and the successful proponent, with such
insurance remaining in operation for at least twelve months after the end of the
contract.
•
This process is a request for proposals and not a tender call. This RFP does not create a
contractual or any other legal or commercial obligation on the part of AMSC.
•
The intent of AMSC is to assess each of the responses submitted and determine in its sole
and unfettered discretion the relative attractiveness to AMSC of each suite of qualifications
and overall approach.
•
AMSC retains the right to assign any contract resulting from this RFP to a new agency of
which AMSC is a member or owner.
•
This RFP does not obligate AMSC to award a contract or otherwise establish a relationship
with any proponent.
•
AMSC may, at its sole discretion, revise the schedule of events or anticipated date of award,
request further information from any proponent, or withdraw this RFP in whole or in part.
•
AMSC shall not be liable for any pre-contractual expenses of any kind incurred by any
proponent.
•
The information contained in this RFP is supplied solely as a guideline for proponents.
While every reasonable attempt has been made to ensure its accuracy, AMSC does not
guarantee or warrant its accuracy, nor is it necessarily comprehensive.
•
After the closing date AMSC reserves the right, in its sole discretion, to seek further
information or clarification with respect to a response without becoming obligated to seek
further information or clarification in respect of any other response.
•
The proponent shall not transfer responsibility to meet the obligations of the contract to a
third party without the written consent of AMSC.
AMSC – General Insurance: Broker and Related Risk Management Services 14
•
AMSC will be the owner of the intellectual property rights, including patent, assignment of
copyright, waiver of moral rights, trademark and industrial design in any product, business
process, and software or training program developed specifically through the contract
resulting from this RFP. Licensing and marketing rights of the developed product, if
appropriate, will be negotiated separately.
•
Any contract resulting from this RFP will be governed by and will be interpreted in
accordance with the laws of the Province of Alberta.
•
Information of any nature that the proponent acquires regarding any aspect of AMSC
business, other than information generally available to the public, shall be treated in strict
confidence. This includes, but is not limited to, proprietary information and processes, trade
secrets, techniques, models, software programs, proposed products and services, financial
information, member lists, employees, business and contractual relationships, business
forecasts and marketing information and techniques. Any confidential information shall not
be divulged, furnished or made accessible to third parties without the explicit written
permission of AMSC unless otherwise required by law.
•
The proponent may not release any information regarding AMSC to the media without the
prior written consent of AMSC.
•
Service providers are expected to support the goals, objectives and activities of AUMA and
AMSC. As agreed from time to time, service providers are expected to support, and where
necessary participate directly in, service marketing and promotion activities.
•
Confirmation is required that the proponent is licensed to carry out the activities described
in this document in Alberta.
•
The broker must have the ability to act as Alberta Insurance Council’s Designated
Representative for AMSCIS Ltd .
•
AUMA, through AMSC, requires that its service providers (1) agree not to compete with
AMSC in any line of service AMSC provides to its members, (2) become affiliate members of
AUMA, and (3) actively participate in and be a sponsor of the annual AUMA convention.
•
AMSC expects to implement a three year agreement, subject to successful completion of
annual performance evaluations, with an option to renew for a further three years. AMSC
reserves the right to cancel the agreement on 60 days’ notice at any time.
5.3 Schedule
April 21, 2016
RFP released.
May 6, 2016
Deadline for proponent questions and answer posting.
May 20, 2016
Proponent responses due.
AMSC – General Insurance: Broker and Related Risk Management Services 15
May 31, 2016
Short list proponents advised.
June 23, 2016
AMSC advises successful proponent.
June 30, 2016
Contract implementation.
•
Proponents short-listed by AMSC may be invited to participate in an interview process
to be conducted at AMSC's offices. Proponents may also be given an opportunity to
discuss key dimensions of their proposal in an oral presentation before a committee of
AMSC staff, standing committee members, and consultants selected by AMSC.
•
Following any interviews, one or more proponents may be invited to negotiate with
AMSC for a final determination of services and prices. AMSC reserves the right to award
a contract to any proponent without undertaking any competitive negotiation.
AMSC – General Insurance: Broker and Related Risk Management Services 16
Appendix One
Current Insurance Program
AMSC – General Insurance: Broker and Related Risk Management Services 17
AMSC – General Insurance: Broker and Related Risk Management Services 19
AMSC – General Insurance: Broker and Related Risk Management Services 20