How could BFL Canada's bid for insurance brokerage services affect Montreal's budget?
Montreal could save $70,000 annually by selecting a new insurance broker. The city of Montreal initiated a Request for Proposal for a new insurance broker, receiving bids from three firms, including BFL Canada, Jones Insurance, and BrokerLink. Staff recommends Jones Insurance because it is the lowest bidder, capping its brokerage fee between $30,000 and $40,000 per year. This selection is projected to save taxpayers $70,000 annually compared to the city's current insurance costs, though the final decision was deferred pending further comparison of all three quotes.
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How it reaches Montreal
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Montreal issued a Request for Proposal for a new insurance broker, receiving three bids from Jones Insurance, BFL Canada, and BrokerLink. Staff recommends Jones Insurance for a five-year term because it is the lowest bidder. The brokerage fee for Jones Insurance is capped at $30,000 to $40,000 per year.
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The competitive bids, including BFL Canada's, led staff to recommend Jones Insurance as the lowest bidder, capping its brokerage fee at $30,000 to $40,000 per year. This potential contract is projected to save taxpayers $70K a year compared to what the city currently pays.
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The facts so far
As reported. Each one links to where it comes from.
- The city received three bids: Jones Insurance, BFL Canada and BrokerLink.elliotlakestandard.ca
- Staff recommends Jones Insurance for a five-year term as Jones is the lowest bidder.elliotlakestandard.ca
- Jones Insurance caps its brokerage fee at $30,000 to $40,000 per year.elliotlakestandard.ca
- The potential savings compared to current costs is $70K a year.elliotlakestandard.ca
Why it matters
The selection of an insurance broker is critical because the broker typically works for the client, advocating for the municipality to ensure legitimate claims are not denied and that the insurance program is well designed. The city's insurance program is a key component of its operational risk management, which is necessary before insurance quotes can even be obtained.
This process highlights the city's focus on maximizing value for taxpayers, as the procurement department sought a competitive open RFP to achieve transparency. The potential $70,000 annual saving represents a concrete financial benefit to the city's budget, provided the recommended broker is ultimately selected by council.
What we don't know yet
- Will the council approve the staff's recommendation for Jones Insurance?
- What will the side-by-side comparison of all three quotes reveal?
What would change this answer
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Reporting
- elliotlakestandard.caOct 13
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