The vendor is required to provide that financial examinations, analysis and information system to perform examinations, analysis, information system review, and general accounting and auditing services for domestic and foreign insurance companies for the department.
-Perform or participate in financial examinations, analysis, information system evaluation and/or accounting or internal control evaluation for assigned companies.
-The nature of the work sought by the department in requires a broad range of financial and business expertise.
-The performance of these duties requires expertise in the insurance industry, accounting and reporting, examination and analysis requirements and standards of the national association of insurance commissioners and state insurance laws and rules.
-Contractor agrees to perform or participate in financial examinations, analysis, information system evaluation and accounting or internal control evaluation for assigned companies.
-Work may also include consulting services not related to a specific company.
-The nature of the work required includes satisfactory performance of the following under the direction of the state:
•Investigation, full-scope or limited-scope examinations or analysis of the affairs of insurers to ascertain financial condition, ability to fulfill obligations and compliance with provisions
of law.
•Examinations, analysis, information systems review and/or general accounting and auditing to be conducted according to the examinations, analysis, information systems review and/or general accounting and auditing to be conducted according financial examiners handbook, examinations, analysis, information systems review and/or general accounting and auditing to be conducted according financial analysis handbook, the examinations, analysis, information systems review and/or general accounting and auditing to be conducted according accounting practices and procedures manual, and other appropriate guidance promulgated by the examinations, analysis, information systems review and/or general accounting and auditing to be conducted according, together with any useful or necessary modifications or adaptations thereof required or approved by the commissioner.
•Coordination and cooperation with insurance departments, attorneys, appraisers, independent
actuaries, independent certified public accountants or other professionals and specialists.
•Evaluation of corporate governance, internal controls, information systems and established
enterprise risk management processes.
•Preparation and interpretation of key ratios, trends and other analytical procedures in developing
an understanding and creating expectations regarding financial results.
•Review of insurance contracts and related premiums and commissions.
•Assessment of recorded reserves and related liabilities through review of actuarial analysis of property/casualty, life, accident and health companies.
•Evaluation of investment strategies/philosophies and assessment or valuation of assets reported in
financial statements
•Analysis of facultative and treaty reinsurance arrangements, including identification of unusual
contract features and assessment of risk transfer.
•Review of reserve valuation reports and preparation of certificates of reserve valuation for
domestic life insurance companies.
•Cash flow and/or liquidity analysis.
•Evaluation of financial forecasts and projections.
•Analysis of terms and conditions of acquisitions, mergers, and other complex transactions
proposed by insurers.
•Testimony regarding specific findings resulting from work conducted for the department at
meetings, including public, administrative, judicial, or legislative hearings, as requested.
•Creation, and maintenance of electronic work papers through Teammate + software.
•Respond within two business days to questions raised by the department concerning work
performed.
•Other work as required by the department.
-Characteristics required of successful bidders:
•Strong financial expertise in the field of insurance and insurance regulation, and access to subject
matters experts where expertise is lacking.
•Ability to carefully follow the examination, analysis, and information system review requirements of
the national association of insurance commissioners and statutes and rules.
•Extensive audit and accounting experience.
•Extensive experience with similar assignments.
•Willingness and history of performing custom engagements beyond examination services.
•Excellent understanding of regulatory and financial issues, including a strong record of thought
leadership in insurance and regulatory matters, such as participation in relevant associations and
societies.
•Adherence to high professional standards and a reputation for quality.
•Experience with automated examination techniques and processes, including electronic workpapers and statistical sampling.
•A concise and accessible presentation of the submitted bid documents
-Issues that must be addressed in the proposal:
•The bidder’s approach to providing services.
•Firm qualifications and similar experiences must be provided.
•Primary areas of focus, if any, within the insurance industry.
•Staff biographies/credentials.
•Staff supervision and work product approval procedures.
•Description of final work product and/or reports.
•Records retention policies.
•Procedures, timing, and approvals for issuing reports.
•State government references and/or insurance industry projects
•Conflict of interest resolution.
•Sample of similar work.
•Hourly rates by staff level.
-The nature of the work required includes satisfactory performance of the following under the direction of the agency:
•Investigation, full-scope or limited-scope examinations or analysis of the affairs of insurers to ascertain financial condition, ability to fulfill obligations and compliance with the provisions of law.
•Examinations, analysis, information systems review and/or general accounting and auditing to be
conducted according to the national association of insurance commissioners’ financial examiners handbook, national association of insurance commissioners’ financial analysis handbook, the
national association of insurance commissioners accounting practices and procedures manual, and other appropriate guidance promulgated by the national association of insurance commissioners, together with any useful or necessary modifications or adaptations thereof required or approved by the commissioner.
•Coordination and cooperation with insurance departments, attorneys, appraisers, independent actuaries, independent certified public accountants or other professionals and specialists.
•Evaluation of corporate governance, internal controls, information systems and established enterprise risk management processes.
•Preparation and interpretation of key ratios, trends and other analytical procedures in developing an
understanding and creating expectations regarding insurer financial results.
•Review of insurance contracts and related premiums and commissions.
•Assessment of recorded reserves and related liabilities through review of actuarial analysis of
property/casualty, life, accident and health companies.
•Evaluation of investment strategies/philosophies and assessment or valuation of assets reported in financial statements.
•Analysis of facultative and treaty reinsurance arrangements, including identification of unusual contract features and assessment of risk transfer.
•Review of reserve valuation reports and preparation of certificates of reserve valuation for domestic life insurance companies.
•Cash flow and liquidity analysis.
•Evaluation of financial forecasts and projections.
•Analysis of terms and conditions of acquisitions, mergers, and other complex transactions proposed by
insurers.
•Testimony regarding specific findings resulting from work conducted for the department at meetings in, including public, administrative, judicial, or legislative hearings, as requested.
•Creation and maintenance of electronic work papers through teammate + software.
•Respond within two business days to questions raised by the department concerning work performed.
•Other work as required by the department.
-Contract Period/Term: 2 years