A. Reserve Peer Review: During the January – February timeframe annually, the Vendor will provide a peer review of Citizens’ in-house annual reserve review. This will consist of examining Citizens’ general reserving methods and specific selections for the various lines of business. The peer review final product will consist of a statement signed by an Accredited Actuary providing their opinion as to the reasonableness of Citizens’ carried reserves. This final work product will be included in the final annual reserve report and provided to the external auditors. B. Special Projects: From time to time, Citizens may require that Vendor provide additional actuarial consulting services for special projects. Special projects most commonly include the following: a. Annual Rate Indications and Rate Filings: Citizens currently prepares fourteen (14) annual rate filings in-house. The expectation is that Citizens will continue to prepare these items in-house. However, from time-to-time, other in-house resource demands and tight timelines may require that one or more of the annual rate filings is outsourced to the Vendor on a special project basis. In addition to providing a final rate review work product that can be filed with the OIR, the Vendor should also be prepared to discuss any part of their prepared analysis at a public rate hearing. An example of a rate filing that may be requested of the Vendor is HO3/HW2. b. Reserve Analysis: Independent reserve analysis of certain segments of business may be requested; for example, when there is a major storm Citizens may ask for an independent review of that storm. The final product would include documented results with a sign-off from an Accredited Actuary. Also, the Vendor should be prepared to discuss any part of their work product at a public rate hearing. Citizens currently contracts with Insurance Services Office, Inc. (ISO) for these Services. This current contract expires June 2026. Citizens intends to award one contract (Contract) to a Vendor for performance of all Services (the “Primary Vendor”). Other Vendors may be awarded a contract on a contingent basis (a “Contingent Contract”), to ensure continuity of Services if the Primary Vendor is unable to perform or meet Citizens’ needs. The Contract term is anticipated to include a five (5) year initial term followed by two (2) optional renewals of up to two (2) years each. The initial contract and renewal terms may be negotiated during the course of this ITN.
