Broker and Insurer Selection – Tender Management

To identify the best broker for the job, it is usually advisable to conduct a tender process. Often companies do not have the necessary resource, time or experience to do this, so the services of an experienced consultant are required.

Our consultants have years of experience in managing complex programs and have a full understanding of how to run the best tender strategy and secure the most from the available brokers to deliver the most competitive and sustainable arrangements. Given our capability and inside knowledge, we can provide significant advantages to companies using our services.

Our Deliverables

1. Services Provided

The services we provide, which would be set out in a formal consultancy agreement, would typically be as follows:

a) Initial consultations with you to agree overall approach and the terms of reference defining what is required from the tendering brokers;

b) Working with you to compile the exposure and other data on which prospective brokers can base their proposals;

c) Agree with you which brokers to invite to tender;

d) Manage the whole tender process on your behalf with regular reports as to progress and referral to you on decision points;

e) Assist you in selecting the successful broker, taking into consideration the quality and price of the program they can deliver, as well as their knowledge, service capabilities and other relevant factors;

f) Finalise the broker appointment contract with you;

g) Oversee the implementation of the program with the successful broker;

h) Provide the interface between the broker and you for day to day program administration;

i) Provide training to your staff about the key insurance program points and the important conditions it contains;

j) Assist you with any claims matters and changes to the program that may be required mid-term;

k) Agree and execute the program renewal strategy with the broker;

l) Manage the overall broker relationship and strategy for you.

2. Tender Documentation

The terms of reference governing the tender process is a crucial document that requires further explanation. This would be designed to provide brokers with essential information about you but mainly to obtain information from them and seek their views on the best solution for you and what supporting risk services they could provide. It would request the following:

a) Detailed information on the broker, including its team and their experience and capabilities, its financial stability, regulatory status, its reputation and references from similar customers;

b) The particular experience and expertise the broker has in your industry and / or category of exposure, and the market knowledge and insurer relationships it can bring to bear ;

c) What risk analysis, benchmarking and advice on correct limits of indemnity can be provided;

d) What risk mapping and exposure management / reporting services can be provided;

e) What coverage and insurance policy design options can be provided;

f) What is the most appropriate insurance program design for you;

g) What broking strategy to Insurers the broker would adopt, including timelines, vetting of Insurers’ financial strength and service track record, and expected premium levels;

h) What insurance program administration services would be provided;

i) What claims expertise the broker has, and what claims services it can provide, including examples of claims settlements for other companies;

j) What risk training, risk management and other services the broker can provide to your key executives and staff.