Certain companies are obliged to purchase goods and services, including insurance, in accordance with strict requirements established by applicable legislation. In the Russian Federation, these are the Federal Law “On Protection of Competition” dated July 26, 2006 No. 135-FZ, the Federal Law “On the Procurement of Goods, Works, Services by Certain Types of Legal Entities” dated July 18, 2011 No. 223-FZ, and the Federal Law “On the Contract System in the field of procurement of goods, works, services to meet state and municipal needs "dated 05.04.2013 No. 44-FZ".
The procedure for selecting of an insurer must follow established competitive bidding processes, which can take from one and a half to two months, and mistakes made during the course can lead to significant fines, cancellation of results and forced termination of concluded contracts. When procuring compulsory insurances for certain activities, technical errors and omissions may lead to a complete freeze of operations.
By resorting to the help of qualified professionals, the customers have a better chance of reducing the number of claims brought by disappointed bidders, as well as averting unnecessary punitive actions by the regulators, thus, reducing the litigation risks.
Over time, the procurement law get more rigorous, the number of requirements grow, and the compliance liability expand. Many industries are forced to create sizable procurement divisions, whose activities are exclusively tied to ensuring competitive bidding, keeping records, and interacting with specialized IT platforms. But even this does not absolutely guarantee the companies from facing regulatory actions.
In this context, it seems appropriate to employ an insurance broker as a Specialized Organization or an insurance procurement consultant, who will provide additional support and/or implement a comprehensive solution by:
- If and when required, aligning pre-insurance survey with further development of risk map and insurance requirements.
- Developing of procurement documentation for clients, including terms of reference, criteria and assessment methodology, draft contract, application forms, information card, etc.
- Issuing requests for proposal on behalf of the clients.
- Providing answers and explanations for the participants.
- Performing procurement procedures (tenders) on behalf of clients, namely opening of bids, completing evaluation, assessment and comparison.
- Downloading the procurement results and other records onto specialized Internet portals. Drafting letters to state supervisory authorities.
In the Russian Federation, we have specialist procurement personnel and are registered as a ‘Specialized Organization’ on the online public procurement portal Unified Information System in Procurement (https://zakupki.gov.ru/). AXIOM InRe Insurance Brokers constantly monitor Russian procurement legislation; the personnel undergo specialist recurrent training to ensure full compliance.
Our broking activities cover a wide range of insurance and risk services. As in all areas of our operation we seek to offer flexibility and innovation to ensure that our clients not only save on their costs, but also get the service they need.
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