[Notice issued May 24,2021; Notice Revised: June 9, 2021]
The Alabama Departmentof Insurance (DOI) hereby gives notice of the issuance of Requests forProposals (RFP) for qualified respondents to provide the DOI with the followingprofessional services:
· Propertyand Casualty Insurance Actuarial Services
· Lifeand Disability Insurance Actuarial Services
· CertifiedPublic Accountant Services
· InsurerExamination Services
· InsurerMarket Conduct Examination Services
· InsurerInvestments Examination Services
· InsurerAutomated Examination Services
Contracts arecontemplated to be awarded for the one-year of term October 1, 2021, throughSeptember 30, 2021. Responses to the RFPmust be received not later than June 24, 2021, at 3:00 PM CDT. Eachresponse must include one original unredacted response in printed form plus oneidentical electronic copy in PDF format on either Compact Disc (CD or DVD) orUSB drive.
TheRFPs are listed in the State of Alabama Accounting and Resource System (STAARS). You may learn about STAARS at http://vendors.alabama.gov/, and canregister as a Vendor at https://procurement.staars.alabama.gov/webapp/PRDVSS1X1/AltSelfService.
Additional information is set forth in the attached files,each accessible in Adobe format:
- RFP for Professional Actuarial Services for Property and Casualty Insurance: Adobe
- RFP for Professional Actuarial Services for Life and Disability Insurance: Adobe
- RFP for Professional CPA Services: Adobe
- RFP for Professional Insurer Examination Services: Adobe
- RFP for Professional Insurer Market Conduct Examination Services: Adobe
- RFP for Professional Insurer Investments Examination Services: Adobe
- RFP for Professional Computer Audit Services: Adobe
Exhibit B, theTeamMate® Confidentiality Agreement, must be submitted with every proposalexcept for CPA. A PDF copy is includedabove with each RFP. An additional copyin Word format is accessible here: Word
State law requires aDisclosure Statement to be submitted with every proposal. The form can be accessed from the DOI Website at https://www.aldoi.gov/PDF/Misc/DisclosureStatement.pdf.
For the procedures andforms for foreign corporations to qualify to do business in the State ofAlabama, please visit the web page for the Alabama Secretary of State at http://sos.alabama.gov/
REVISIONS TO THIS NEWS RELEASE AND RESPONSES TOQUESTIONS WILL BE POSTED BELOW.
Questions 1-13, regarding the RFP for Property &Casualty Actuary services:
1. Whoare the current actuaries performing the services listed in this RFP?
We currentlyhave four actuarial firms under contract for Property and Casualty InsuranceActuarial Services:
· Lewis & Ellis
· Merlinos & Associates, Inc.
· Milliman, Inc.
· Taylor-Walker Consulting, LLC
2. Whatis the length of time the current actuary has been providing services to theState?
The four actuarialfirms currently under contract for Property and Casualty Insurance ActuarialServices have had contracts with the Alabama Department of Insurance (DOI) overthe years as follows:
· Lewis & Ellis – First Year (for P&C Actuary)
· Merlinos – Many years (over 30)
· Milliman – Second Year
· Taylor-Walker – Fifth Year
3. What other vendors have you used for the actuarial serviceslisted in the RFP aside from the current vendor(s), and for how many years foreach vendor?
In addition tothe four actuarial firms currently under contract for Property and CasualtyInsurance Actuarial Services, the Alabama DOI has also had contracts over thelast five years with the following firms:
· Actuarial & AnalyticsConsortium, LLC – One Year
· Risk & Regulatory Consulting,LLC – One Year
4. What is the current annual fee and werethe services provided for that fee consistent with the current RFP?
There is no“annual fee” for actuarial firms. Firmsare paid based on an hourly rate for the amount of work that may be done bythem. Thus far in this fiscal year,these contractors have been paid as follows:
· Lewis & Ellis – $0
· Merlinos – $7,438.75
· Milliman – $0
· Taylor-Walker – $9,450
5. What were the rates used by the incumbent actuary(ies) forthe actuarial services performed in each of the past 5 years?
The rates forActuary – Level I, have varied over the last five years from $225 to $270. The total amounts spent with each actuaryover the last five years are as follows:
· Actuarial & Analytics – FY20:$4,920
· Lewis & Ellis – FY21: None
· Merlinos – FY16: $92,018; FY17:59,300; FY18 – none; FY19: $33,343; FY20: $7,034; FY21: $7,439
· Milliman – FY20: $11,218; FY21:None
· Risk & Regulatory – FY16:$21,718
· Taylor-Walker – FY17: $32,709;FY18: $33,548; FY19: $40,936; FY20: $5,169; FY21: $9,450
6. How many examinationswere conducted under the contract each of the past five years? How many hours were billed for eachexamination?
We do not keepthis information readily available. Youcan see the total amounts paid over the last five years and divide by the averagerate to get an idea of the number of total hours each year. Some of those were for just one project orexamination, others may have been on multiple projects or examinations.
7. Why is this RFP being submitted as thistime?
As indicated inSection 1.1 of the RFP, the DOI is seeking proposals from qualified respondentsto provide, in this case, actuarial services for property and casualtyinsurance. Professional services contracts in Alabama may be for a periodnot to exceed two years. As indicated in the RFP, we expect to issuecontracts for fiscal year 2022, which begins October 1, 2021, and endsSeptember 30, 2022.
8. Isthe scope of services provided by the current consultant similar to theservices being requested in this RFP?
9. From our experience of working withother state risk management departments, these projects often havepredetermined allowed budgets. Is there a budget for the requested services,and if so, what is that amount? This information will help us ensure we areproviding the right level of scope that you are seeking.
This RFP is issued by the Alabama Department of Insurance forservices indicated in Section 1.2 of the RFP. These services will be provided under acontract “on an as-requested or as-needed basis.” As each project is assigned to a contractor,the number of hours projected to be necessary to complete the task will bedeveloped and, if necessary, the contract amended to cover the expectedproject.
10. Can the State provide an electronic copyof the prior year actuarial reports produced?
11. Ifneeded, would the winning firm have access to the loss data and reports fromyour current actuary?
The actuary willbe provided all information necessary to complete the assigned job at the timethe job is assigned.
12. Will a firmwith no TeamMate licenses be considered?
No. As indicated in Section 1.2.6 of the RFP,contractors are required to use TeamMate®, have a current license to useTeamMate, and enter into a confidentiality agreement with the DOI confirmingthe manner in which the contractor will use TeamMate®. Additionally, asindicated in Section 1.3.2 of the RFP, a required qualification is “ademonstrated knowledge and experience in using ACL and TeamMate® software andthe ability to prepare and maintain work papers utilizing TeamMate® over thecourse of an examination.”
13. How arefirms selected to perform work under this contract? E.g., is it assigned on arotating basis?
Normally, we lookfor the most qualified firms with the most competitive hourly rates. Once we start working with a particular firm,if we like the work product, we continue to work with that firm, and do notmerely rotate among the contracted firms. We try to have at least three firms under contract at a time in casethere are conflicts which may keep one firm from being able to representus. Occasionally, we will have a specialproject that may be better suited for the personnel at one firm overanother.
Question 14, regarding the RFP for Life & Health Actuaryservices:Are we
14 The scope of work for this RFP is to provideactuarial services for “life insurance (including credit life), accident andhealth (disability) insurance (including credit accident and health), andannuity contracts” as well as “health maintenance organizations and health careservice plans.” Are we allowed topropose to provide actuarial services on the accident and health, HMO,and health care service pieces of the scope but NOT the lifeinsurance and annuity contracts portions?
It is acceptable to submit aproposal which provides only part of the requested scope of actuarial services,although it will affect the score received under the evaluation described inSection 5.4 of the RFP.
It is noteworthy to mention that many actuarialfirms have qualifications for both Life & Health and for Property &Casualty. Such a firm may score poorlyoverall for one RFP but score well on the other. It is possible for a firm that is wellqualified for P&C and for Health but not Life, as the question indicates,to be offered a contract for both P&C and L&H on the strength of theirP&C qualifications.