Insurance management, advisory and broking services:
The Risk Financing and Insurance Intermediary Services Contract is the first stage of a two-stage process. It establishes a Master Services agreement for a panel of insurance intermediaries.
Stage two involves clustering eligible agencies with similar risk profiles before approaching the panel in a series of closed Request for Proposals.
Participating agencies can opt to participate immediately through an Individual Services Order (ISO) and/or wait to be included in a cluster through a Group Services Order (GSO).
When an agency is participating under an ISO:
When an agency is participating under a GSO:
Agencies who participate in the contract don't need to go through a full procurement process of their own, which saves time, effort and cost. Hard savings are realised on a case by case basis, per cluster.
Most AoG contracts include an administration fee. This fee is a simple, effective and transparent way of recovering the cost of developing, sourcing, implementing and managing AoG contracts.
The administration fee is applied in two ways for the Risk Financing and Insurance Intermediary Services contract. It depends on whether an agency signs under an Individual Services Order or a Group Services Order.
A capped administration fee is applied based on the premium spend. This is a one-off payment.
|Spend band (per annum)||Admin fee|
|$10,000-65,999||1.5% (no cap)|
|$66,000-500,000||1.5% ($1,000 cap)|
|=/> $500,001||1.5% ($5,000 cap)|
The administration fee is structured to suit each cluster, but will not exceed 1.5% of spend.
Providers add this fee as an additional cost when they invoice agencies. They collect the administration fee and pass it on to MBIE - agencies don't need to make any payments to MBIE.
Each participant in this contract has responsibilities that they must meet as part of that contract.