What Is an RFP in Insurance? How Buyers and Brokers Use Them

An RFP in insurance is a formal request a business or public body sends to brokers or insurance carriers. It asks them to propose coverage, pricing, and service for its risks. The buyer sets the requirements and the scoring rules. Brokers and carriers compete to win the account.

Two groups look for this answer. Risk managers, CFOs, and HR leads want to run a fair process and compare offers side by side.

Brokers want to answer insurance RFPs and win them, including the public-sector RFPs that cities and school districts issue. This guide covers both sides. You’ll learn the three types of insurance RFPs, the data underwriters need, the steps from start to award, and how brokers win.

Key Takeaways

 

• An insurance RFP invites brokers or carriers to compete for a buyer’s coverage, service, or advisory work.
• Many programs run in two stages. The buyer picks a broker first. The broker then takes the account to carriers.
• Underwriters price what they can see. Complete loss runs, values, and exposure data lead to sharper quotes.
• Cities, counties, and school districts issue formal broker-of-record RFPs with strict submission rules.
• Brokers win by answering the scoring criteria in order and backing each claim with proof an evaluator can check.

Writing an insurance RFP or answering one? The Write Direction’s RFP writers help buyers draft clear insurance RFPs and help brokers build compliant, persuasive responses. Book a consultation.

What Is an RFP in Insurance?

 

An insurance RFP describes the buyer’s risks, current coverage, and service needs. It then asks qualified firms to submit proposals by a set date.

Each respondent answers the same questions in the same format, so the evaluation team can compare offers side by side. For the general definition outside insurance, see our guide to RFPs in business.

An RFP asks for more than a price. A quote request asks a carrier for a premium on a defined policy. An RFP asks how a broker will design the program, which carriers it will approach, how it handles claims, and who will service the account. Our comparison of RFQ vs RFP explains the difference in more detail.

Buyers go to RFP for clear reasons:

• Premiums rose faster than the business grew.
• A large claim exposed coverage gaps or weak claims advocacy.
• The business merged, expanded into a new region, or launched a new line of work.
• A procurement policy or board rule requires competitive bidding.
• Service from the current broker has slipped.

Gallagher, a major US brokerage, advises against running broker RFPs on a fixed schedule. Frequent changes can strain carrier relationships. It points to growth, mergers, a major claim, and ongoing service complaints as better reasons to go to market.

The Three Types of Insurance RFPs

 

Broker-of-Record RFPs

 

In a broker-of-record RFP, the buyer chooses an advisor. The winning broker runs the insurance program, approaches carriers on the buyer’s behalf, and supports claims.

Evaluators score sector expertise, access to carrier markets, the service team, claims advocacy, risk management support, and compensation.

Compensation needs a clear answer. Brokers earn commission from carriers, a flat fee from the client, or a mix of the two. Public RFPs often require full disclosure of both.

Coverage RFPs

 

Once the buyer picks a broker, the broker “markets the account.” The broker sends a submission to carriers, and underwriters return quotes with premiums, limits, deductibles, and policy terms.

The broker compares the quotes and recommends a program. This two-stage order puts the broker’s carrier relationships to work for the buyer.

Vendor RFPs From Insurers

 

Insurance companies also issue RFPs as buyers. Carriers and managing general agents buy policy administration software, claims platforms, third-party administrator (TPA) services, actuarial work, and compliance support.

These RFPs follow standard vendor procurement rules, and our guide to vendor RFPs covers how to respond.

Insurance RFPs by Line of Coverage

 

Line	What the RFP covers	Data respondents need
Property and casualty	Property, general liability, auto and fleet, workers’ compensation, umbrella	Statement of values, vehicle schedule, payroll by job class, loss runs
Employee benefits	Health, dental, vision, life, disability	Employee census, plan designs, claims experience, current rates
Specialty lines	Cyber, directors and officers (D&O), public officials liability, crime, professional liability	Security controls, governance details, financial statements, claims history

Specialty lines often get their own RFP section, since underwriters for these risks ask detailed technical questions. Gallagher notes that each line carries distinct risk and claims considerations, so a strong RFP tests broker expertise line by line.

Who Takes Part in an Insurance RFP

 

On the buyer side, a core team runs the process. Gallagher names risk management, finance, legal, and procurement as that core group, with IT, HR, or operations consulted on the lines that touch their work.

On the responding side, the cast depends on the RFP type:

• Brokers compete for broker-of-record appointments and assemble coverage proposals.
• Carrier underwriters evaluate the risk and set price and terms.
• Managing general agents (MGAs) underwrite certain specialty risks on a carrier’s behalf.
• TPAs handle claims for self-insured organizations and risk pools.

Some buyers also hire an independent consultant to write the RFP and score responses. The consultant keeps the current broker at arm’s length from the evaluation.

Public-Sector Insurance RFPs

 

Cities, counties, school districts, transit agencies, and housing authorities buy insurance with public money. Procurement rules require them to put the work out to bid. Broker-of-record RFPs from these bodies appear on public procurement portals year-round, in the US and in Canada.

Public insurance RFPs add requirements you won’t see in most private ones:

• Mandatory forms, such as non-collusion affidavits, certificates of insurance, and conflict-of-interest disclosures.
• Full compensation disclosure, including commissions and any contingent income.
• Fixed question periods, with answers published to all bidders as addenda.
• Sealed or portal submission, with late responses rejected.
• Finalist interviews before a council or board vote.

Some public bodies join a risk pool for certain lines instead of buying from carriers. In Washington State, for example, state law authorizes local governments to form pools that share risk and buy insurance as a group.

Brokers answering public RFPs need to show they understand pools as well as commercial markets. Our guide to RFPs in government contracting covers the wider procurement rules these bids follow.

What an Insurance RFP Package Contains: The COVER Framework

 

Underwriters price what they can see. Gaps in the data push them toward cautious pricing or a decline. Use the COVER framework to build a complete package, whether you issue the RFP or prepare the submission for carriers.

Element	What to include	Why it matters
Coverage specifications	Current policies, limits, deductibles, retentions, and the changes you want	Respondents quote the same program, so you can compare offers side by side
Operations profile	Business description, locations, headcount, revenue, key contracts	Underwriters judge risk by what the business does
Values and schedules	Statement of values for property, vehicle schedules, employee census for benefits	These numbers drive the premium calculation
Experience data	Loss runs (five years is a common request), large-claim detail, safety programs	Underwriters use claims history to project future losses
Requirements	Scope of services, evaluation criteria and weights, timeline, submission format, compensation terms	Clear rules produce complete, comparable proposals

Three terms in that table trip up first-time buyers. A loss run is a carrier’s report of past claims, with dates, amounts paid, and money still set aside.

A statement of values lists each building and its contents, with the cost to replace them. An employee census lists each worker’s age, plan tier, and location so carriers can price benefits.

The Insurance RFP Process, Step by Step

 

Start from the renewal date and work backward. The Independent Insurance Agents & Brokers of America publishes a sample renewal timeline in its Hard Market Toolkit.

It starts market research 180 days before renewal. Quoting begins at 120 days, and the broker binds coverage in the final 30 days. A broker RFP has to finish before that marketing window opens, so schedule broker selection months ahead of it.

1. Assess needs. Review the current program, recent claims, and business changes.
2. Assemble the COVER data. Request loss runs from each carrier and update your schedules.
3. Issue the RFP to a short list. For private RFPs, Gallagher suggests the incumbent broker plus one to three others.
4. Run a question period. Share each answer with all respondents.
5. Score proposals against published criteria. Our guide to RFP evaluation criteria shows how to weight them.
6. Interview finalists and check references.
7. Select and transition. Sign the broker-of-record letter or contract and plan the handover from the incumbent.

Facing an insurance RFP deadline? The Write Direction can draft your RFP or build your broker response, so you submit on time and in full compliance. Book a consultation.

How Brokers Win Insurance RFPs

 

Answer in the Issuer’s Order

 

Use the RFP’s headings and numbering. Evaluators score with a rubric beside them, and a response that mirrors the RFP structure takes less effort to score.

Lead With Proof

 

Name similar accounts you serve, renewal results you achieved, and claims you resolved. A claims advocacy example with a dollar figure beats a paragraph of adjectives. Public bodies call references, so pick clients who will take the call.

Disclose Compensation in Full

 

Show commission rates, fees, and any contingent or supplemental income in one table. Evaluators trust brokers who answer this question before anyone asks it.

Write the Executive Summary for a Non-Specialist

 

Council members, superintendents, and CFOs often read the summary and skim the technical sections. State the problem, your plan, the team, and the cost in plain language. Our guide to writing an RFP executive summary walks through the structure.

Prepare the Interview Team

 

Bring the account manager and claims lead who will service the account day-to-day. Evaluators want to meet the people they will call after a loss.

When to Bring in an RFP Writer

 

For buyers, outside help pays off when:

• You are running your first formal insurance RFP.
• A procurement rule requires a public tender with legal forms.
• The program spans several lines of coverage and many locations.

For brokers, it pays off when:

• Several public RFPs land in the same month.
• Your proposal library is thin or out of date.
• You lost an incumbent account and need a sharper response.

An RFP writer builds the compliance matrix, drafts and edits the narrative, formats the response to the issuer’s rules, and checks each form before submission.

Your team supplies the technical content: carrier relationships, coverage analysis, pricing, and references. Our RFP and bid writing services page explains how we work.

Next Steps for Your Insurance RFP

 

An RFP in insurance gives buyers a fair way to compare brokers and coverage, and gives brokers a clear path to new accounts. The result depends on both sides. The buyer needs to share complete data. The broker needs a response that follows the rules and backs each claim with proof.

At The Write Direction, we write insurance RFPs that brokers can answer in full. We also write broker responses built to score well with public review panels. Book a consultation or email us at [email protected] with your RFP and deadline.

Frequently Asked Questions

 

What is an RFP in insurance?

 

An RFP in insurance is a formal document a buyer uses to invite brokers or carriers to propose coverage, pricing, and services. It lays out the buyer’s risks, current program, and needs. It also sets a deadline and scoring criteria.

Respondents answer the same questions in the same format, so the buyer can compare proposals side by side and pick the best fit.

What is the difference between an insurance RFP and an insurance quote?

 

A quote gives you a premium for a defined policy. An insurance RFP asks for a full proposal: program design, carrier strategy, claims support, service team, and compensation, along with pricing. Buyers use quotes for simple renewals. They use RFPs to choose a broker or rebuild a program that spans several lines of coverage.

What is a broker of record RFP?

 

A broker-of-record RFP picks the broker who will represent a buyer with insurance carriers. The winning broker manages renewals, approaches carriers, and supports claims.

Cities, counties, and school districts issue these RFPs through public bids. Expect required forms, a full pay disclosure, and finalist interviews. A board or council then approves the pick.

How often should a business put its insurance out to RFP?

 

No fixed rule applies. Public bodies re-tender when a broker contract ends. Private businesses tend to act on change: a merger, fast growth, a large claim that exposed gaps, or a drop in service.

Frequent changes can strain carrier ties, so weigh the value of a steady relationship against the savings before you go to market.

What documents do carriers need to quote an insurance RFP?

 

Carriers need your current policies and loss runs. For property, add a statement of values. For fleets, add a vehicle list. Workers’ comp needs payroll by job class, and benefits need an employee census.

Specialty lines add more, such as security controls for cyber and financial statements for D&O. Complete data brings more carriers to the table and sharper pricing.