Ontario Education Collaborative Marketplace

Transcription

1 Ontario Education Collaborative Marketplace Marché Éducationnel Collaboratif de l Ontario INSURANCE BROKER SERVICES REQUEST FOR PROPOSALS Issued by: Ontario Education Collaborative Marketplace OECM Request for Proposals Number: # Request for Proposals Issued On: September 26, 2012 Proposal Submission Deadline: 2:00:00pm on November 1, 2012 Local Time in Toronto, Ontario, Canada Ontario Education Collaborative Marketplace shall not be obligated in any manner to any Supplier whatsoever until a written agreement has been duly executed with a Supplier. 90 Eglinton Avenue East, Suite 504, Toronto, Ontario, Canada, M4P 2Y3 OECM Insurance Broker Services RFP # Page 1

2 TABLE OF CONTENTS PART 1 INTRODUCTION Invitation to Proponents Ontario Broader Public Sector Procurement Directive Overview of Ontario Education Collaborative Marketplace Background - Ontario Colleges Consortium of Ontario Colleges - Joint Insurance Committee Type of Agreement Collaborative Procurement Activity Proponent Consortium Information No Guarantee of Volume of Work or Exclusivity of Agreement Rules of Interpretation Definitions... 9 PART 2 - THE DELIVERABLES Description of Deliverables College Consortium Types of Insurance Objective of this RFP Participating Consortium Members Current Insurance Arrangements Ontario Colleges Group A - Loss Experience Key Issues Status of College Inspections by Insurers Status of Claims Adjusting Services Core Services Required Account Management Day-to-day Administration Comprehensive Risk Identification and Assessment Insurance Policy Review and Interpretation Development and Execution of the Insurance Renewal Monitoring of Current and Future Trends Claims Management Services Risk Control Services Permits, Licenses, and Approvals Personnel Invoicing Payment Terms Contract Management with OECM Reporting Accessibility for Ontarians with Disabilities Act Pricing Methodology PART 3 - EVALUATION OF PROPOSALS Stages of Proposal Evaluation Evaluation Point Allocation Stage I Review of Mandatory Requirements (Pass/Fail) Form of Offer - Appendix B (Mandatory Form) Rate Bid Form Appendix C (Mandatory Form) Compliance with Agreement Appendix H (Mandatory Form) Proof of Insurance Stage II Rated Requirements (60 Points) Stage III Presentation (Not evaluated or scored) Content Attendance Stage IV Pricing Pricing Evaluation Stage V Cumulative Score Stage VI - Tie Break Process Discussions with Preferred Proponent OECM Insurance Broker Services RFP # Page 2

3 PART 4 - TERMS AND CONDITIONS OF THE RFP PROCESS General Information and Instructions RFP Timetable Proponent Information Session Proponents to Follow Instructions Proposals in English OECMs Information in RFP Only an Estimate Proponent s Costs Communication after RFP Issuance RFP Coordinator Contact Information Proponents to Review RFP Proponent to Notify All New Information to Proponents by way of Addenda Proposal Submission Requirements General Proposal Submission Requirements Other Proposal Considerations Proposal Receipt by OECM Withdrawal of Proposal Amendment of Proposal Completeness of Proposal Proposals Retained by OECM Proposal Irrevocability Acceptance of RFP Amendments to RFP Proposals will not be Opened Publicly Clarification of Proposals Verification of Information Proposal Acceptance RFP Incorporated into Proposal Exclusivity of Contract Substantial Compliance No Publicity or Promotion Execution of Agreement, Notification and Debriefing Selection of Proponent Failure to Enter Into Agreement Notification to Other Proponents of Outcome of RFP Process Debriefing Bid Dispute Resolution Prohibited Communications, Confidential Information and FIPPA Confidential Information of OECM Confidential Information of the Proponent Proponent s Submission Personal Information Non-Disclosure Agreement Freedom of Information and Protection of Privacy Act Competition Act Trade Agreements Intellectual Property Reserved Rights and Governing Law of OECM General Rights of OECM Preferred Proponent No Liability Assignment Entire RFP Priority of Documents Governing Law OECM Insurance Broker Services RFP # Page 3

4 APPENDIX A FORM OF AGREEMENT APPENDIX B FORM OF OFFER APPENDIX C RATE BID FORM APPENDIX D REFERENCE FORM APPENDIX E RATED REQUIREMENTS APPENDIX F TYPE OF PROPONENT APPENDIX G ONTARIO COLLEGE CONSORTIUM MEMBERSHIP APPENDIX H COMPLIANCE WITH AGREEMENT APPENDIX I WORK EFFORT OECM Insurance Broker Services RFP # Page 4

5 PART 1 INTRODUCTION 1.1 Invitation to Proponents This Request for Proposals ( RFP ) is an invitation to prospective Proponents to submit Proposals for the provision of Insurance Broker Services ( Services ) to support a Consortium of Ontario Colleges ( Consortium ). The Services are set out in three (3) groups. Proponents must submit Proposals for all three (3) groups of insurance Services. The requirements are described in Part 2 - The Deliverables (the Deliverables"). This RFP is issued by the Ontario Education Collaborative Marketplace ( OECM ). 1.2 Ontario Broader Public Sector Procurement Directive OECM and its Clients are obligated to adhere to the Ontario Broader Public Sector (BPS) Procurement Directive effective April 1, 2011 issued by the Ontario Management Board of Cabinet. The purpose of the directive is: To ensure that publicly funded goods and services, including construction, consulting services, and information technology are acquired by BPS organizations through a process that is open, fair and transparent. To outline responsibilities of BPS organizations throughout each stage of the procurement process. To ensure that procurement processes are managed consistently throughout the BPS. The directive applies to all School Boards, Colleges and Universities (SCUs) in Ontario. The goal of the BPS supply chain code of ethics is to ensure an ethical, professional and accountable BPS supply chain in Ontario through: i. Personal Integrity and Professionalism ii. Accountability and Transparency iii. Compliance and Continuous Improvement Visit the following website for the complete BPS Procurement Directive document Overview of Ontario Education Collaborative Marketplace OECM was launched in 2007 to lead collaborative strategic sourcing initiatives and promote the adoption of leading integrated supply chain management practices. OECM is a not-for-profit/non share corporation, partially funded by the government of Ontario and governed by a Board of Directors representing publicly funded education institutions as well as the business community. All OECM agreements meet the mandatory requirements of the BPS Procurement Directive. They are primarily designed for Ontario s publicly funded educational institutions, but are also available to the BPS organizations and municipalities. The education sector in Ontario spends an estimated $4 billion annually on goods and services. OECMs common tendering and contracting approach facilitates product standardization and greater savings leverage, making it easier and less costly to procure goods and services. In this way, OECM provides participating SCUs with opportunities to realize both process and procurement savings, which will result in more funds being available for core academic activity. OECM Insurance Broker Services RFP # Page 5

6 SCUs who participate in OECMs strategic sourcing events will have access to high quality goods and services, and will achieve more efficient use of their own institutional resources. OECM is governed by a Board of Directors comprised of representatives from SCUs, and the Ministries of Education, and Training, Colleges and Universities, as well as three (3) independent Directors. The Board plays a key role in governance, policy formulation, and decision-making. OECM receives a cost recovery fee through its agreements with suppliers, which will ultimately lead to OECMs financial self-sufficiency. Working in collaboration with Ontario s education sector and BPS clients, OECM: Leads collaborative comprehensive strategic sourcing events to contract for goods and services on behalf of the education sector and other BPS organizations. Establishes agreements for products and services commonly used throughout the education sector. Provides contract and vendor relationship management services for all agreements developed by OECM throughout their lifecycle. Develops tools, guides and other materials to streamline or enhance access to and usage of OECM agreements. Conducts analysis and reporting to ensure adherence to supplier performance and agreement terms. Actively promotes adherence to the Ontario BPS Procurement Directive in all phases of the sourcing and agreement lifecycle. For more information about OECM, please visit Background - Ontario Colleges Ontario Colleges are comprised of twenty-four (24) publicly funded community Colleges. The Colleges offer programs in almost 600 subject areas, serving about 200 communities throughout Ontario, providing access to people in rural and remote areas, and to people from all walks of life. Colleges offer many credentials including certificates, 2-year and advanced 3-year diplomas, bachelor s degrees in applied areas of study, graduate certificates for those who have already achieved a postsecondary diploma or degree, and joint College-University programs which allow students to earn a College diploma and a University degree. College programs are offered in the fields of business, tourism and travel, journalism, computer programming, construction trades, health care and many others. Distance education and courses offered online are important delivery methods for many colleges. Customized programs and training are also offered on a contract basis to more than 1,000 major employers in Ontario. The Colleges serve more than 200,000 full-time and 300,000 part-time students and clients. There are more than 100 campuses in Ontario delivering a wide range of career-focused education and training programs. 1.5 Consortium of Ontario Colleges - Joint Insurance Committee Nineteen (19) Colleges participate in an insurance Consortium to ensure consistent and efficient delivery of the Services and to achieve volume related pricing advantages. Subject to the direction of the Colleges Ontario Administrative Services Coordinating Committee ( ASCC ) and the Colleges Ontario Finance Officers ( COFO ), a Joint Insurance Committee ( Committee ) was created and has been in place since The Committee s purpose is to assist ASCC in its oversight of insurance matters and the underlying process, including, but not limited to, selection of the independent insurance broker, their performance, and independence from insurance underwriters, and overall compliance by the members with appropriate requirements. OECM Insurance Broker Services RFP # Page 6

7 The Committee has formed a Task Force to research insurance opportunities for the Colleges. The Task Force is comprised of six (6) administrative staff members from the Ontario Colleges as noted on Appendix G. In December 2011, OECM issued an RFP for insurance consulting services. Beginning in March 2012 Intech Risk Management Incorporated began reviewing existing insurance coverage, opportunities for change, risk assessment and mitigation, including: A 5-year review of premium and commission rates. A 5-year review of contingent commissions rates. An analysis of aggregate insurance limits and deductibles. A 5-year review of claims experience. The resulting recommendations were: To conduct a procurement for insurance broker services. To allow for the potential unbundling of services to breakout costs for services required by the Colleges. To evaluate the cost/benefits of current and alternative risk financing structures including a group insurance deductible program. A consultant, supporting the Consortium, is engaged with this RFP procurement process. 1.6 Type of Agreement The Preferred Proponent shall be required to enter into an Agreement ( Agreement ) substantially in the form of the Agreement attached in Appendix A Form of Agreement for the provision of the Deliverables to Clients throughout the Province. Non-conflicting terms and conditions from the Supplier may be included in the Agreement, upon mutual agreement between the parties. Please refer to Appendix H where Proponents may submit suggested changes to the Agreement terms and conditions. OECM intends to award an Agreement to one (1) Preferred Proponent. The Term of the Agreement is intended to be for a period of three (3) years, with an option in favour of OECM to extend the Term of the Agreement on the same terms and conditions for up to two (2) additional periods of up to one (1) year each. Clients, including Consortium members and BPS organizations, participating in the Agreements will execute Client-Supplier Agreements (CSAs) with the Supplier as attached in Appendix A. The Supplier and Client, when executing a CSA, will mutually agree to additional terms and conditions (e.g. Client s business hours, reporting, invoice formatting, payment terms, security clearance checks, etc.). OECM intends that the Agreement will be signed in or about December The Agreement must be signed before the provision of any Deliverables commences. 1.7 Collaborative Procurement Activity The provincial government promotes cooperative procurement initiatives by public sector agencies in Ontario. It is intended that other Clients who may have an interest, shall have the option to consider participation in any award made as a result of this RFP, ensuring the participation does not increase the Rates provided in the RFP response. The Supplier shall, if mutually agreed upon by OECM and the Task Force, allow other Clients to piggyback on to the resulting Agreement from this RFP for the Services set out herein after July Proponent Consortium Information Where a Proponent consortium is responding to this RFP, the following shall apply: OECM Insurance Broker Services RFP # Page 7

8 The Proponent shall identify itself as the sole Proponent. The Proponent shall list all other consortium members and what each will supply. The Proponent shall confirm that the Proponent shall assume full responsibility and liability for the work and actions of all consortium members with respect to the obligations to be assumed pursuant to this RFP, provided that OECM shall be entitled to reject a proposed Subcontractor. Regardless of the relationships between a Supplier and its Subcontractors, the Supplier will be solely and directly responsible for performing the obligations of the Supplier under the Agreement and under each CSA. Consortium s should complete and submit Appendix F with its Proposal. 1.9 No Guarantee of Volume of Work or Exclusivity of Agreement The information contained in the RFP constitutes an estimate and is supplied solely as a guideline to Proponents. Such information is not guaranteed, represented, or warranted to be accurate, nor is it necessarily comprehensive or exhaustive. Nothing in this RFP is intended to relieve the Proponents from forming their own opinions and conclusions with respect to the matters addressed in this RFP. Quantities described are estimates only and may not be relied on by the Proponents. The Agreement executed with the Supplier will not be an exclusive Agreement for the provision of the Deliverables. OECM Clients may contract with others for the same or similar Deliverables to those described in this RFP Rules of Interpretation This RFP shall be interpreted according to the following provisions, unless the context requires a different meaning: Unless the context otherwise requires, wherever used herein the plural includes the singular, the singular includes the plural, and each of the masculine and feminine includes the other gender. Words in the RFP shall bear their natural meaning. References containing terms such as includes and including, whether or not used with the words without limitation or but not limited to, shall not be deemed limited by the specific enumeration of items but shall, in all cases, be deemed to be without limitation and construed and interpreted to mean includes without limitation and including without limitation. In construing the RFP, general words introduced or followed by the word other or including or in particular shall not be given a restrictive meaning because they are followed or preceded (as the case may be) by particular examples intended to fall within the meaning of the general words. Unless otherwise indicated, time periods will be strictly applied. The following terminology applies in the RFP: o o Whenever the terms must or shall are used in relation to OECM or the Proponents, such terms shall be construed and interpreted as synonymous and shall be construed to read OECM shall or the Proponent shall, as the case may be. The term will describes a procedure that is intended to be followed. OECM Insurance Broker Services RFP # Page 8

9 1.11 Definitions Unless otherwise specified in this RFP, capitalized words and phrases have the meaning set out in the Form of Agreement attached as Appendix A to this RFP. The following definitions apply: Agreement means the agreement to be made between the Preferred Proponent and OECM based on the template attached as Appendix A, together with all schedules and appendices attached thereto and all other documents incorporated by reference therein, as amended from time to time by agreement between OECM and the Supplier. Applicable Law means any common law requirement and all applicable and enforceable statutes, regulations, directives, policies, administrative interpretations, orders, by-laws, rules, guidelines, approvals and other legal requirements of any government and/or regulatory authority in effect from time to time. Broader Public Sector or BPS means all Municipalities, Academic Institutions, School Boards, Health Care Providers and Major Transfer Payment Recipients in the Province. Please see for more details of these organizations. Business Day means Monday to Friday between the hours of 8:00 a.m. to 5:00 p.m. local time in Toronto, Ontario, Canada except when such a day is a public holiday, as defined in the Employment Standards Act (Ontario), or as otherwise agreed to by the parties in writing. Client mean Ontario School Boards, Colleges and Universities and potentially other Broader Public Sector organizations that may purchase the Deliverables under the resulting Agreement. Client Supplier Agreement or CSA means a schedule attached to the Agreement, which is executed between Clients and the Supplier for the provision of the Deliverables in this RFP. Confidential Information means confidential information of OECM and or any Client (other than confidential information which is disclosed to the Preferred Proponent in the normal course of the RFP) where the confidential information is relevant to the Deliverables required by the RFP, it s pricing or the RFP evaluation process. Conflict of Interest means any situation or circumstance where, in relation to the performance of its obligations under the Agreement, the Proponent s other commitments, relationships or financial interests (i) could or could be seen to exercise an improper influence over the objective, unbiased, and impartial exercise of its independent judgement; or (ii) could or could be seen to compromise, impair, or be incompatible with the effective performance of its obligations under the Agreement. Consortium means the nineteen (19) participating Ontario College Clients as set out in Appendix G. Deadline for Issuing Final Addenda means the date and time as set out in Section of this RFP and may be amended from time to time in accordance with the terms of this RFP. Deliverables means the Services to be delivered as specified in this RFP. Eligible Proposal means a Proposal that meets or exceeds a prescribed requirements, allowing it to proceed to the next stage of evaluation. FIPPA means the Freedom of Information and Protection of Privacy Act, R.S.O. 1990, c. F.31, and all regulations adopted thereunder, in each case, as amended or replaced from time to time. OECM means the Ontario Education Collaborative Marketplace. Personal Information or PI is defined in the Agreement. Preferred Proponent means the Proponent that OECM has identified as the highest scoring Proponent in accordance with the evaluation process set out in this RFP. OECM Insurance Broker Services RFP # Page 9

10 Proponent means an entity that submits a Proposal in response to this RFP and, as the context may suggest refers to a potential Proponent. Proposal means all of the documentation and information submitted by a Proponent in response to the RFP. Proposal Submission Deadline means the Proposal submission date and time as set out in Section and may be amended from time to time in accordance with the terms of this RFP. Province means the Province of Ontario. Rate Bid Form means the form contained in Appendix C of this RFP. Request for Proposals or RFP means this Request for Proposals number # issued by OECM for the purchase of Insurance Broker Services, including all appendices, amendments and addenda thereto. RFP Coordinator means the individual identified in Section Service means the Deliverables to be procured pursuant to this RFP. Subcontractor includes the Supplier s subcontractors or third party service providers or their respective directors, officers, agents, employees or independent contractors, who shall fall within the meaning of Supplier for the purposes of this procurement. Supplier means a Proponent who has assumed full liability and responsibility for the provision of Deliverables pursuant to the Agreement either as a single Supplier or a lead Supplier engaging other suppliers or Subcontractors. Term has the meaning set out in Section 1.6 of this RFP. Unfair Advantage means any conduct, direct or indirect, by a Proponent that may result in gaining an unfair advantage over other Proponents, including but not limited to (i) possessing, or having access to, information in the preparation of its Proposal that is confidential to OECM and which is not available to other Proponents, (ii) communicating with any person with a view to influencing, or being conferred preferred treatment in, the RFP process, or (iii) engaging in conduct that compromises or could be seen to compromise the integrity of the RFP process and result in any unfairness. [End of Part 1] OECM Insurance Broker Services RFP # Page 10

11 PART 2 - THE DELIVERABLES 2.1 Description of Deliverables The Supplier will deliver the Services to meet the requirements set out in this RFP during the Term of the Agreement. The Supplier should: Have experience working with a group of public sector entities on the insurance coverage s being purchased. Have adequate resources to support requirements for Services in the areas of account management, day-to-day administration, comprehensive risk identification and assessment, insurance policy review and interpretation, development and execution of the insurance renewal, monitoring of current changes and future trends, alternative risk financing structures, claims management and risk control. Allow for core Services requirements, as set out in Section 2.6, to be reviewed on an unbundled basis, (either in-house or through contracted third party firms) to support risk management efforts specifically in the areas of claims management (excluding adjuster services) and risk control services. Have the ability to conduct business with the Consortium s incumbent and prospective insurers and adjusters. 2.2 College Consortium Types of Insurance Consortium members carry the following types of insurance: TYPES OF INSURANCE Group A - Group Purchasing Program (Entire Consortium) Automobile Liability (including non-owned automobile) Boiler & Machinery Commercial General Liability Crime Educational Institution Errors & Omissions Liability (includes Directors & Officers, Employment Practices Liability and Fiduciary Liability) Garage Automobile Liability Property (including Excess Property) Umbrella/Excess Liability Group B - Other Insurance (Varies by College) Aviation Construction (as required) Cyber Risks/Privacy Environmental Liability Hull & Machinery Media Liability Misc. E&O/D&O/Fine Arts Misc. General Liability; Special Accident/K&R Group C - Accident Benefits Insurance (Varies by College) Board of Governors accidental death and dismemberment Excess WSIB Indemnity Faculty/staff travel accidental death and dismemberment Occupational co-op student work term accidental death and dismemberment Sports teams accidental death and dismemberment Volunteers accidental death and dismemberment 2.3 Objective of this RFP To help identify and manage costs, certain core Service requirements (as set out in Section 2.6) are being requested on an unbundled basis, specifically with respect to claims management and risk control. OECM is seeking to establish and build a relationship with a Supplier that can provide the best possible insurance program and risk management Services. OECM Insurance Broker Services RFP # Page 11

12 The purpose of this RFP process is to select a Supplier that can achieve the following: Demonstrate an ability to identify, manage and insure the risks of the Consortium such that all required insurance coverage is purchased on as broad a basis as possible, and as cost effectively as possible. Provide guidance and information to incumbent insurers and potential insurers and work with the Consortium to ensure that underwriters have the required understanding of the Consortium s operational exposures. Provide expertise and strategy relating to the management of general liability and property risks, including risk identification and collection and analysis of claims information. Be able to provide support for alternative risk financing structures, and work with the Consortium s actuaries and consultants or other service providers on any such initiatives. Propose ways to manage cash flow outlays using premium financing tools, quarterly installment options and other approaches. Demonstrate experience in negotiating with insurers in Canada and internationally as necessary, and describe how risk is communicated in order to ensure that the best combinations of price and coverage options are available. Understand, anticipate and be responsive to Consortium needs. Apply a reasonable standard regarding the management and issuance of policy documentation in a timely manner, regardless of the type of policy or location of insurer. Demonstrate an ability to identify, address and correct weaknesses in the current insurance program, without increasing costs. Provide support to the Consortium regarding risk control issues and support them with the analysis of risk control costs and benefits. 2.4 Participating Consortium Members Appendix G sets out all Ontario Colleges and indicates which Colleges are Consortium members, as well as the number of students at each College and their website addresses. 2.5 Current Insurance Arrangements Ontario Colleges The Consortium members currently participate in a group insurance purchasing plan. It is a guaranteed cost insurance program purchased in the traditional insurance market on a group basis. The Colleges participating in the Consortium enjoy a special discount due to economies of scale. The Consortium currently spends approximately $6,500,000 annually on insurance premiums, inclusive of insurance broker commissions. The number of Colleges participating in the Group A has grown from 12 in 2002; to 16 in 2006; and now 19 in OECM Insurance Broker Services RFP # Page 12

13 The following three (3) tables (Groups A, B and C) summarize key details, by line of coverage: GROUP A GROUP PURCHASING PROGRAM COST OF RISK (2012) Line of Coverage Current Insurer Limits Available* Gross Premiums Automobile Liability Aviva $1MM $256,369 Boiler & Machinery Aviva $50MM; $75MM; $100MM $290,573 Commercial General Liability Royal $1MM $1,644,673 Crime Chartis $250K, $300K, $500K, $1MM, or $2MM $104,407 Educational Institution Liability (including Excess Educational Liability) Chartis $5MM to $15MM $587,951 Garage Automobile Aviva $1MM $39,926 Property (including Excess Property) Royal (50%) Ecclesiastical (50%) $150MM; $200MM; or $300MM $1,844,472 Umbrella/Excess Liability Royal Up to $29MM including Malpractice & Abuse $536,136 TOTAL $ 5,304,507 * The ability to enhance current coverage is available (i.e. business interruption; Medical Malpractice & Abuse; Excess Property; additional E&O limits). GROUP B OTHER INSURANCE COST OF RISK (2012) Line of Coverage Current Insurer Policy Count Gross Premiums Aviation Global Aerospace 4 $558,360 Construction (as required) N/A None in current year $ Cyber-Risk/Privacy Chartis 1 $15,471 Environmental Liability* Hull & Machinery XL Insurance Royal or Continental Casualty 1 multi-year expiring in 2014 $41,976 3 $19,388 Media Liability Chubb 9 $38,301 Misc. E&O/D&O /Fine Arts XL Insurance or Encon 1 annual; 2 multi-year (expiring in 2014 and 2015) $12,925 OECM Insurance Broker Services RFP # Page 13

14 GROUP B OTHER INSURANCE COST OF RISK (2012) Misc. General Liability** Aviva Purchased as required. $0 Special Accident (K&R)* Chartis or Lloyds 3 annual; 1 multi-year (expiring in 2012); 2 multiyear (expiring in 2014) $35,322 TOTAL $721,743 * Includes one year of premium for multi-year policies expiring in ** Includes one-off General Liability placements to address coverage needs when renting facilities to third parties (non-profit entities). GROUP C ACCIDENT BENEFITS INSURANCE COST OF RISK (2011/12) Line of Coverage Insured Current Insurer Accident/AD&D Business Travel Accident Emergency Excess Medical Excess WSIB Indemnity Occupational Accident and AD&D Student Non-Student Student & Non- Student Non-Student Non-Student Industrial Alliance, ACE INA, Chartis or AXA Industrial Alliance, ACE INA or Chartis Policy Count Gross Premiums 14 $39, $32,031 Chartis or AXA 6 $23,751 Chubb or Industrial Alliance Chubb or Industrial Alliance 5 $292,801 5 $87,889 TOTAL $476, Group A - Loss Experience Over the last five (5) years, the average annual gross loss ratio and the total number of claims for Group A are summarized below. GROUP A FIVE YEAR AVERAGE ANNUAL LOSS EXPERIENCE ( ) Line of Coverage Gross Loss Ratio Claims Count (Total 5-Years) Automobile Liability 39% 57 Boiler & Machinery 28% 6 Crime 0% 0 Educators Liability 189% 73 Garage Automobile 0% 0 General Liability 59% 286 Property 36% 119 Umbrella/Excess Liability 10% 1 OECM Insurance Broker Services RFP # Page 14

15 Please note - the claims information for Groups B and C is not available Key Issues The Consortium has maintained long-term relationships with Group A insurers. There are several key issues with Group A that can challenge a Supplier with regard to ensuring the insurance programs costs and scope of coverage are well managed and negotiated. Some examples of challenges include: Educator s Liability: Driving and flight schools. Includes Errors & Omissions, Directors & Officers, Fiduciary and Employment Practices Liability. Low deductible level. Separate aggregates per College. General Liability/Umbrella: Abuse and Malpractice coverage. Low deductible level. Manuscript wording. Sports related liabilities. Property Insurance Program: Maintaining details on Construction, Occupancy, Protection and Exposure ( COPE ). Manuscript wording. Replacement cost valuation (125% margin clause) Status of College Inspections by Insurers College properties have been reviewed over the past couple of years with report/feedback to the Colleges directly. The liability insurer recently started undertaking liability surveys Status of Claims Adjusting Services A control adjuster is retained on some lines of coverage. Insurers may also provide their own adjusters. There are currently no formal arrangements with a control adjuster. 2.6 Core Services Required Consortium members require a variety of insurance and risk management Services to be provided by the Supplier. These Services include, but are not limited to: Account Management The Consortium requires a creative and responsive Supplier and support team, headed by a professional and knowledgeable account executive well versed in the insurance industry, to provide ongoing and day-today administration. The Supplier s team must be responsive to the needs of the Consortium and provide requested information and documentation on a timely basis, and keep them apprised of all new developments in the insurance industry affecting their insurance and risk management needs. The Committee requires regular and ongoing meetings with the account team to effectively prepare for, and deal with, the annual insurance renewal Service for all of its policies of insurance. As part of the implementation and renewal process, the Committee may require meetings with current and prospective insurers. OECM Insurance Broker Services RFP # Page 15

16 Once the insurance is in place, the Committee and the Consortium will require the account team to meet on a regular basis, and as required, to discuss issues that may arise from time to time which could impact their insurance and risk management programs Day-to-day Administration The Consortium may require the assistance of the Supplier to review contracts, leases, and agreements, to ensure that they are maintaining the appropriate insurance, and ensuring appropriate risk transfer where applicable. Contract, lease, and agreement review is also a useful risk identification tool, as it may assist the Supplier in fully understanding the overall business risks inherent in the Consortium member s operation. The Supplier will be required to issue auto identification cards and certificates of insurance as required under contracts, leases, and agreements between the Consortium member and third parties, including partners, for accuracy and compliance with the contract, lease or agreement terms and conditions. The Supplier will issue certificates if the third party is listed as an additional insured. Where this is not required, the Consortium member will issue certificates of insurance utilizing a pre-issued Supplier provided template. Overall, it will benefit the Consortium to have the Supplier provide certificates of insurance, where required, on line, to ensure prompt handling of these types of requests. The Supplier will be required to develop, and substantiate, premium breakdowns and spreadsheets for each class of insurance. The Supplier will be required to provide premium financing options, and so will need to provide estimated costs for financing for the Consortium to consider, should they choose to avail themselves of this option. It is important for the Supplier to review, monitor, and report insurance company ratings on a regular basis. The Consortium must be kept up-to-date on the financial stability of all insurance companies and reinsurance companies participating in the Service provision, and the Services of third parties and partners on whom the Consortium is relying upon for indemnification Comprehensive Risk Identification and Assessment As part of the initial review of any insurance needs, the Consortium requires the Supplier to participate in the development and implementation of a systemic, comprehensive, risk identification and assessment process. The process will allow all parties to become familiar with current risks and exposures facing the Consortium, and how they may be addressed. As well, a process for ongoing assessment and communication of new risks and exposures encountered by the Consortium must be developed to ensure all parties are kept abreast of all new developments likely to impact them. This process will involve meetings with the Consortium and the Committee, a review of all corporate material, contract, lease and agreement review, claims review and developing a risk identification, assessment and quantification model Insurance Policy Review and Interpretation The Supplier will be required to conduct a complete and comprehensive policy review, within acceptable time limits Development and Execution of the Insurance Renewal The Supplier will develop and implement the marketing plan for the Consortium s annual insurance coverage. The following activities may be required as part of the renewal process: Development of underwriting material. Preparation of submissions, and to provide copies to the Committee for review and acceptance. Review of insurance market conditions in terms of capacity, pricing, and the opportunities for enhancement of existing coverage s, as well as new coverage considerations. OECM Insurance Broker Services RFP # Page 16

17 Provision of firm costs estimates to the Committee, including any enhanced or contingent profit commissions or overrides received from any insurer. Identification of suitable insurers with an interest in insuring the Consortium s portfolio. Deductible studies to determine the appropriate level of deductible for each class of insurance, in relation to the Consortium s appetite for risk and premiums credits available. Review and provision of financial ratings of all proposed insurers. Timely preparation and review of all insurance documents including, but not limited to, policies, binders, cover notes, certificates and the like, to ensure that the terms, conditions and other relevant information is correct. Seek approval from the Committee prior to finalizing renewal coverage. Prompt issuance of all necessary binders, cover notes and certificates in accordance with instructions from the Consortium. Preparation of an annual stewardship report that will include, but not be limited to, the goals, objectives, activities and accomplishments achieved during the renewal process, and annually thereafter. Provide summaries for all new Service placements, as well as changes/updates to existing coverage. Prepare and circulate meeting minutes for the Committee Monitoring of Current and Future Trends The Supplier will ensure that it stays current on issues such as insurance company capacity, new insurance products, and alternative risk financing and financial strength of Insurers Claims Management Services The Supplier will review and update loss run reports for accuracy and for confirmation of the breakdown of claims costs between indemnity, legal expenses and adjusting expenses and produce them on a quarterly basis. Each Consortium member as applicable will pay costs for claims below the deductible, including any adjusting expenses. The Supplier will track claims and adjusting costs from the first dollar. Under the Colleges group insurance program the insurers provide all claims, risk control, and related account services on a bundled basis. The Consortium will undertake a review of the Services, costs, and performance of a control adjuster for property and liability claims and, when required, for claims under other forms of insurance coverage. The Supplier may be asked to assist in this process. The Supplier will be expected to assist the Consortium in reporting new incidents/claims and resolving any new claims and, may assist in the oversight and management of historical open claims. The Consortium s claims handling/reporting procedures will be supported by the Supplier (e.g. development and implementation of internal claims handling procedures). There should be a link between claims and risk control resources such that knowledge from claims activity can be shared within the Consortium to introduce appropriate risk control measures, where this can be helpful in reducing the overall cost of risk Risk Control Services It was recently confirmed that the property and liability insurers for the Colleges are going to be conducting more site surveys. Ecclesiastical previously visited some Colleges and Royal & Sun Alliance Insurance Company of Canada may also visit some of those same Colleges for a liability inspection. Current risk control services provided by the Supplier includes assistance in the coordination of the surveys, a review of the recommendations and providing assistance to the Colleges to address any immediate concerns. In addition, the Consortium is interested in a comprehensive risk control approach designed to be delivered, which could include: Assistance with maintaining and updating COPE information for all locations, including recommendation priority tracking and resolution. OECM Insurance Broker Services RFP # Page 17

18 Property and liability risk control inspections to be carried out at each location, on a scheduled basis. Cost/benefit analysis of recommendations. Risk control Services as required on a specific project basis. Other risk control Services required may include, but not be limited to, development of surveys, checklists, plan/drawing review, policy and procedures manual development and review of design standards. There should be a link between claims and risk control resources such that knowledge from claims activity can be shared within the group to introduce appropriate risk control measures, where this can be helpful in reducing the overall cost of risk. 2.7 Permits, Licenses, and Approvals Proponents shall obtain all permits, licences, and approvals required in connection with the supply of the Services. The costs of obtaining such permits, licences, and approvals shall be the responsibility of, and shall be paid for by, the Proponent. The Supplier must be Registered Insurance Broker of Ontario licensed. Where a Proponent is required by Applicable Laws to hold or obtain any such permit, licence, and approval to carry on an activity contemplated in its Proposal or in the Agreement, neither acceptance of the Proposal nor execution of the Agreement by OECM shall be considered an approval by OECM for the Proponent to carry on such activity without the requisite permit, licence, or approval. 2.8 Personnel The Proponent should submit information related to the qualifications and experience of its personnel who will be assigned to provide the Services, which may include resumes, documentation of accreditation, and/or letters of reference. See Section before submitting any such personal information. 2.9 Invoicing Flexibility in invoicing and payment processes is required. The Supplier shall submit an invoice to each Client, in either paper or electronic format Payment Terms The Client s standard payment terms are net thirty (30) days. Different payment terms may be agreed upon when executing CSAs Contract Management with OECM The Supplier will provide appropriate contract management support including, but not limited to: Monitoring price, quality and service. Carry out and provide results from a Client satisfaction survey, if available. Work and act in an ethical manner Reporting The Supplier shall provide reports relating to the provision and support of the Services (e.g. claims reports, annual reports, and the annual level of effort (i.e. number of hours) per core Service as set out in Section 2.6). The Consortium members may require other reporting. The details of which would be set out in the CSA Accessibility for Ontarians with Disabilities Act OECM is committed to the highest possible standards for accessibility. Supplier must be capable to recommend and deliver, as appropriate for each Deliverable, accessible and inclusive goods and/or services consistent with the Ontario Human Rights Code (OHRC), the Ontarians with Disabilities Act, 2001 (ODA) OECM Insurance Broker Services RFP # Page 18

19 and Accessibility for Ontarians with Disabilities Act, 2005 (AODA) and its regulations in order to achieve accessibility for Ontarians with disabilities. In accordance with Ontario Regulation made under the Accessibility for Ontarians with Disabilities Act, 2005 (Accessibility Standards for Customer Service), Clients have established policies, practices and procedures governing the provision of its goods and services to persons with disabilities. The Supplier is required to comply with the Client s accessibility standards, policies, practices, and procedures, which may be in effect during the Term of the Agreement and which apply to the Deliverables to be provided by the Supplier Pricing Methodology The proposed Rates shall be firm for the initial Term of the Agreement. Rates during the extension periods, if exercised, will be mutually determined based on?? Service Rates will not be paid prior to April 1, 2013 and must be aligned with premium payments. [End of Part 2] OECM Insurance Broker Services RFP # Page 19

20 PART 3 - EVALUATION OF PROPOSALS 3.1 Stages of Proposal Evaluation OECM will conduct the evaluation of Proposals in the following six (6) stages: Stages Stage I Stage II Stage III Stage IV Stage V Stage VI Evaluation Mandatory Requirements Rated Requirements Presentation Pricing Cumulative Score Tie Break 3.2 Evaluation Point Allocation The following table is a summary of the point allocation for the evaluation of this RFP: Stages Evaluation Scoring Methodology Maximum Points (if applicable) Minimum Threshold Requirement Stage I Mandatory Requirements Pass/Fail Pass Stage II Rated Requirements 60 See Section 3.4 Stage IV Pricing 40 Not applicable Please refer to Appendix E where rated requirements are set out. 3.3 Stage I Review of Mandatory Requirements (Pass/Fail) Stage I will consist of a review to determine which Proposals comply with all of the mandatory requirements. During Stage I of the evaluation, Proposals will be examined to ensure that they meet the mandatory requirements. The Proponent must ensure that all mandatory requirements have been addressed satisfactorily in its Proposal, in order for the Proposal to proceed to Stage II of the evaluation process. Any Proposal that is not considered, by OECM, to meet all mandatory requirements will be disqualified and not evaluated further. A Proposal must include the following three (3) completed mandatory forms: Appendix Appendix B Appendix C Appendix H Title of Appendix Form of Offer Rate Bid Form Compliance with Agreement OECM Insurance Broker Services RFP # Page 20

21 Other than inserting the information requested on the mandatory submission forms set out above, a Proponent may not make any changes to any of the forms. Any Proposal containing any such changes, whether on the face of the form or elsewhere in its Proposal, may be disqualified Form of Offer - Appendix B (Mandatory Form) Each Proposal must include a Form of Offer (Appendix B) completed and signed by the Proponent. (a) Conflict of Interest In addition to the other information and representations made by each Proponent in the Form of Offer, each Proponent must declare whether it has an actual or potential Conflict of Interest. If, at the sole and absolute discretion of OECM, the Proponent is found to be in a Conflict of Interest, OECM may, in addition to any other remedies available at law or in equity, disqualify the Proposal submitted by the Proponent. The Proponent, by submitting the Proposal, warrants that to its best knowledge and belief no actual or potential Conflict of Interest exists with respect to the submission of the Proposal or performance of the contemplated Agreement other than those disclosed in the Form of Offer. Where OECM discovers a Proponent s failure to disclose all actual or potential Conflicts of Interest, OECM may disqualify the Proponent or terminate any Agreement awarded to that Proponent pursuant to this Proposal process. (b) General OECM, in addition to any other remedies it may have in law or in equity, shall have the right to rescind any Agreement awarded to a Proponent in the event that OECM determines that the Proponent made a misrepresentation or submitted any inaccurate or incomplete information in the Form of Offer. Other than inserting the information requested and signing the Form of Offer, a Proponent may not make any changes to or qualify the Form of Offer in its Proposal. A Proposal that includes conditions, options, variations or contingent statements that are contrary to or inconsistent with the terms set out in the RFP may be disqualified. If a Proposal is not disqualified despite such changes or Proposals, the provisions of the Form of Offer as set out in this RFP will prevail over any such changes or Proposals in or to the Form of Offer provided in the Proposal Rate Bid Form Appendix C (Mandatory Form) The Rate Bid Form, completed by the Proponent in accordance with the instructions contained below and in Appendix C, provided that the following shall apply: All prices shall be provided in Canadian funds and shall include all applicable customs duties, tariffs, overhead, materials, fuel, office support, profit, permits, licenses, labour, carriage, insurance, Workplace Safety Insurance Board costs, travel, and warranties, and further shall not be subject to adjustment for fluctuation in foreign exchange rates. All prices shall be quoted exclusive of the harmonized sales tax (HST), provincial sales tax (PST) or other similar taxes, each of which, if applicable, should be stated separately. All prices quoted, unless otherwise instructed in this RFP, shall remain firm for the Term of the Agreement. In the event of any discrepancy in the pricing, the lowest unit price submitted shall prevail. The Proponent is deemed to confirm that it has prepared its Proposal with reference to all of the provisions of the RFP, that it has factored all of the provisions of the Agreement into its pricing assumptions, calculations and into its proposed Pricing. A Proposal that includes conditional, optional, contingent or variable rates that are not expressly requested in the Rate Bid Form may be disqualified. OECM Insurance Broker Services RFP # Page 21