Appointment of an insurance broker to manage the Mossel Bay Municipality's short-term insurance portfolio for three years, from 1 July 2027 to 30 June 2030. Bidders must hold FAIS, FIA, IRMSA and ISO 9001 credentials. Closes 27 November 2026.
Mossel Bay Municipality is inviting tenders from licensed insurance brokers to manage its short-term insurance portfolio for a three-year period from 1 July 2027 to 30 June 2030. The appointed broker will act as the Municipality's representative with the underwriters, placing and renewing cover, advising on risk and insurance gaps, and administering claims across the Municipality's policy types. The current contract expires on 30 June 2027, and the successful bidder will take over all portfolio decisions from 1 July 2027. The tender sits within a self-insurance framework, under which the Municipality maintains a self-insurance reserve for own-damage and third-party claims below reinsurance excess levels.
The scope covers placement and annual renewal of cover including motor fleet third-party liability (R25 million), public liability (R100 million), employers liability (R50 million), events liability (R10 million per event), directors and officers liability (R10 million), cyber liability (R25 million), and SASRIA cover. The broker must obtain at least one written quotation per policy by 15 May each year, have the policy in place by 1 July, and attend pre-placement and pre-renewal meetings. Claims responsibilities include acknowledging claims within 7 days, settling claims within 21 days of a signed settlement agreement, delivering a monthly claims-ratio dashboard by the third working day of each month, and supplying a monthly reconciliation of the refundable advance of R500 000. Claims above R50 000 (excluding replacement items) must be assessed by a Loss Adjuster registered with the Institute of Loss Adjusters of South Africa, with an office within a 60 km radius of the Municipality's Schoeman Street yard. Quarterly review meetings with the insurer and CFO-level stakeholders are also required. Broker fees must include all costs and be quoted as a fixed monthly fee net of underwriter commission, with all premiums VAT inclusive.
Bidders must meet several mandatory requirements, failing which the bid may be deemed non-responsive. These include a certified SABS ISO 9001:2015 certificate for financial services in short-term insurance, a Financial Intermediaries Association (FIA) membership certificate, a certified FAIS licence, an IRMSA certificate, Professional Indemnity cover of at least R100 million, Commercial Crime cover of at least R50 million, proof of solvency margin, a letter of authority, company registration documents, and audited financial statements. Bids are scored on functionality out of 40 (minimum 32 required), covering company profile (18 points) and project team qualifications and experience (22 points). Responsive bids are then evaluated on price and specific goals under the 80/20 or 90/10 preference point system, which includes B-BBEE and locality points. Tenders must be valid for 120 days after closing, and a compulsory online briefing is scheduled for 5 November 2026 at 11:00 via Microsoft Teams. Submissions close at 12:00 on 27 November 2026 at the Mossel Bay Town Hall tender box.
For the successful bidder, the contract offers a multi-year public-sector mandate with clearly defined service levels, a structured claims process, and the opportunity to build a long-term relationship with a municipality managing a broad portfolio of assets and liabilities. For the Municipality, the appointment is expected to deliver timely claims handling, competitive premiums through annual market testing, and stronger risk management that protects public funds and municipal assets.
This tender suits licensed short-term insurance brokers and financial services providers that hold FAIS authorisation and FIA membership, and that can provide ISO 9001:2015 certification, IRMSA certification, professional indemnity cover of at least R100 million, and commercial crime cover of at least R50 million. Brokers with prior experience placing and managing insurance for local authorities or other public-sector bodies will score highest on functionality, particularly those with dedicated relationship managers and claims specialists holding relevant qualifications. Businesses based in the Garden Route or Western Cape will also gain locality points and can more easily meet the 60 km loss adjuster requirement. Smaller brokers may be suited if they can form a joint venture that meets the financial and certification requirements, although a signed joint venture agreement must be included with the bid.
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