RM $706-02$ Team Project: Request for Proposal I: Introduction College prepares you for your profession and career. When you graduate, no matter what specialty of expertise you select, you will be asked to write, sell, collaborate, lead and convince others of your ideas. The position paper format is designed to provide that experience. All of you will partner up and submit a power point presentation request for proposal response. Each team will be asked to present their findings and recommendations. II$.$ Presentation Guidelines Each team will be required to submit a power point presentation. The presentation itself should be no more than $10-15$ minutes. The format of the presentation should be as follows Part I $$ Executive Summary: Team chart and credentials of team Part II$-$ Body of the response includes program structure, captive retention and attachment. Part III $$ Scope of services and platform supporting the program $.$ Part IV$-$Outline your recommendation. Part IV $$ Details fee for services Company X REQUEST FOR PROPOSAL Global Property and Business Interruption Insurance Program Renewal Date $-$ December $15,2018$ TABLE OF CONTENTS I. DESCRIPTION II$.$ PROPOSAL REQUIREMENTS III. REQUESTED INFORMATION IV$.$ CONFIDENTIALITY V$.$ EVALUATION CRITERIA VI$.$ APPENDIX A VII. APPENDIX B VIII. APPENDIX C I. DESCRIPTION The Risk & Insurance Management Department has initiated a Request for Proposal for brokerage services relative to the administration, facilitation and procurement of insurance coverages, products, and services in connection with the Global Property and Business Interruption Insurance Program which renews December $15$th of this year. Company X is a global financial services firm with approximately $56,000$ employees occupying $888$ locations throughout $39$ countries. The majority of our buildings are pure office space. We also occupy data centers, trading floors, and roughly $600$ branch offices. We have a Total Insured Value of approximately $$11\mathrm{.}5$ billion. This includes Business Interruption values which we allocate to each and every location with the assistance of a forensic accounting firm. An exposure summary is provided in Appendix A$.$ Additionally, Company X$$s Property program currently conforms to Basel II requirements and has done so since $2008.$ The entire Property policy is fronted by Company X$$s captive insurer which allows the commercial insurance panel to act in a reinsurance capacity. The current Property insurance program has a limit of USD$1$ Billion with all other property $($AOP$)$ deductibles of $$500,000$ per occurrence for property damage and $$2,500,000$ per occurrence for time element losses. Appendix B points out some of the many perils where the policy contains sub$-$limits$.$ In addition, we utilize our captive insurer to $$buy down$$ this deductible for our smaller offices around the world. They benefit from a $$50,000$ per loss deductible with a limit of $$500,000.$ There are many insurance carriers utilized for this program. We enjoy long standing relationships with our Domestic, United Kingdom, and Bermuda markets. A challenging goal is to reduce the number of carriers in the primary layer. Even when capacity enables us to do this, our longevity with many carriers makes it difficult for us to actually eliminate them. This has proven to be difficult due to long$-$standing relationships and a recent claim payment. Company X$$s Property$/$Business Interruption risk can be characterized as low frequency with high severity potential. Please refer to Appendix C for our loss history. II$.$ PROPOSAL REQUIREMENTS $$ Responses are conceptual only. Participants are NOT authorized to approach the insurance market on behalf of Company X in connection with this Request for Proposal. $$ Proposers must submit one $(1)$ hard copy of their completed proposal. $$ All pages should be numbered. III. REQUESTED INFORMATION $1.$ Describe the structure and staffing of your firm$$s Property insurance brokerage team. $2.$ Identify the team members and their respective roles to service the account. $3.$ Describe and provide an overview of your firm$$s proposed global property insurance program structure to include: a$.$ An analysis of the pros and cons of the various program arrangements. b$.$ Your recommendations for markets, program limits$,$ and retention levels inclusive of any and all pertinent sub$-$limits and sub$-$deductibles that may apply. c$.$ Any challenging or stand out terms and conditions which you have achieved on other accounts and feel you can obtain for this account. d$.$ A schematic with pricing for any layered structure proposed. $4.$ Discuss the teams experience with: a$.$ A Basel II arrangement. b$.$ A captive fronted program. $5.$ Describe your Firm$$s approach and capab