Actuarial outstanding claims liability valuation (reserving) software for the road accident fund – 3-Year saas contract

{"closingDate":"08 OCTOBER 2026","closingTime":"11:00 AM","briefingSession":"{"date":"18 SEPTEMBER 2026","time":"11:00 AM","venue":"E AND TIME: 18 SEPTEMBER 2026","is_compulsory":true}"}

A non-compulsory briefing session will be held on Microsoft Teams on 18 September 2026 at 11:00 AM. Link: https://teams.microsoft.com/meet/330889967215098?p=cEU55lhzn6AoqoVdwF

{"name":"Mr Elias","email":"[email protected]","phone":null,"department":"of Trade and Industry (dti) is","address":"ll enquiries regarding this bid must be directed to the Supply Chain Management Office"}

Returnable Documents: SBD 1: Completed, attached and signed, SBD 4: Completed, attached and signed, SBD 6.1: Completed, attached and signed, Proof of Construction Industry Development Board (CIDB), Provide Tax TCS Pin to verify Tax Status: Attached, involved, each party must submit a separate Tax TCS Pin.), Registered on the Central Supplier Database of National, https://secure.csd.gov.za/), 2.6.1 That the bidder/s is/ are registered on the National Treasury Central Supplier, Database (CSD)

Returnable Documents / Information checklist: SBD 1: Completed, attached and signed; SBD 3.1 or 3.2 or 3.3 Completed, attached and signed; SBD 4: Completed, attached and signed; SBD 5: Completed, attached and signed; SBD 6.1: Completed, attached and signed; Proof of Construction Industry Development Board (CIDB) registration, if applicable; Specification document; General Condition of contract; Provide Tax TCS Pin to verify Tax Status: Attached (In bids where Consortia/Joint Ventures/Sub-contractors are involved, each party must submit a separate Tax TCS Pin.); If the bidder is a joint venture, consortium or other unincorporated grouping of two or more persons/entities, a copy of the joint venture agreement between the members should be provided; Registered on the Central Supplier Database of National Treasury. (For registration information, go to https://secure.csd.gov.za/). Note: Some requirements may not be applicable to international suppliers/bidders and only those suppliers/bidders will be exempted from these mandatory/legislative requirements. All SBDs must be submitted (signed) noting where it is not applicable.

Bidders must be registered on the National Treasury Central Supplier Database (CSD). Tax compliance with SARS is required; non-compliant bidders get 7 working days to rectify. Bidders must complete and sign all returnable forms: SBD 1, SBD 3.1, SBD 4, SBD 5, SBD 6.1, and provide a Tax TCS PIN (or CSD number). Joint ventures must submit a joint venture agreement and separate tax pins. Bidders must not be listed on the Register for Tender Defaulters or List of Restricted Suppliers. Bidders must have at least one Fellow Actuary with 3+ years post-qualification, registered and in good standing with a recognised professional body (FASSA, FIA, FCAS or equivalent), with a Letter of Good Standing not older than 3 months. The proposed software must be AI-enabled and deployed as SaaS. Bidders must have Professional Indemnity cover including privacy breach and cyber liability. Bidders must provide at least three valid client references for similar valuation software within the last five years.

Procurement of actuarial outstanding claims liability valuation “reserving” software

For a period of three (3) years

The proposed actuarial outstanding claims liability valuation (“reserving”) software must, at a minimum, provide the following capabilities: Support both deterministic and stochastic valuation methods appropriate for outstanding claims liability modelling. Enable advanced analytical capability, including machine learning-assisted analysis where appropriate. Provide sufficient computational capacity to process large volumes of claims data efficiently and reliably. Include embedded governance controls and audit trail functionality to support transparency, review, and accountability. Support consistent valuation roll-forwards across reporting periods. Must be capable of performing simulations and scenario testing at a scale suitable for RAF’s valuation requirements. The scope of requirements includes: Core Reserving Capability: Support key deterministic and stochastic reserving methodologies including (but not limited to) Basic Chain Ladder, Inflation Adjusted Chain Ladder, Bornhuetter-Ferguson, and bootstrap-type models. Enable flexible preparation and grouping of claims data, combining results across categories, and providing complete reserve output ranges. The platform must at least be able to segment the outstanding claims liability in any chosen definition of the claims life cycle by the user (Not only limited to the traditional life cycle). For example: Incurred But Not Reported (IBNR), Reported But Not Assessed (RBNA), Assessed But Not Offered (ABNO), Offered But Not Accepted (OBNA), Accepted But Not yet Requested for payment (ABNR), Requested for payment but Not Yet Paid (RNYP). Artificial Intelligence–Enabled Reserving (Mandatory): Provide embedded AI/ML capability to support reserve estimation, automate routine tasks, identify unusual patterns in data, and improve the efficiency of the reserving process. Support a range of analytical techniques appropriate for identifying trends, patterns, and risk factors within claims data. Ensure that all outputs remain transparent, understandable, and subject to actuarial review and approval. Large-Scale Automated Model Evaluation: Support efficient evaluation of multiple modelling approaches and assumption sets across large volumes of data. Provide automated comparison of model outputs and support batch execution across portfolios. Time-Consistent Valuation & Real-Time Analytics: Maintain version-controlled valuation environments. Automatically roll forward prior analyses and generate reserve movement analysis across valuation periods. Provide real-time reserve performance tracking. Embedded Audit & Governance Framework: Automatically generate a complete audit trail tracking data changes, assumption updates, model selections, overrides, and outputs. Maintain tamper-proof audit records that permanently capture all system changes, in line with AGSA and PFMA governance requirements. Enterprise Computational Engine: Operate on a secure server-based architecture capable of supporting enterprise-scale processing requirements. Provide parallel processing capability and support high-volume simulations and analytical workloads efficiently and reliably. It should be Software as a Service (SaaS). It should be hosted within the borders of South Africa. Data Integration & Infrastructure: Connect to various data sources. E.g Oracle, Informix, SQL Server, etc. Connect or be capable of incorporating external data sets such as: Motor Vehicle Accident Data from the Road Traffic Management Corporation; Population Data from Statistics South Africa. RAF Operating Model Alignment: Support product-level valuation (Loss of Earnings, Loss of Support, General Damages, Medical Expenses). Segment claims by at least the following key differentiators: Open vs closed claims; Claims paid in lump sums vs paid in instalments (annuities); Claims from the Pre-Amendment Act era vs Post-Amendment Act era; Direct vs Represented Claims; South African vs Foreigner Claims. System configuration and rollout: End user machine connection and configuration. Training and skills transfer: End user training for Seven (07) users - Understanding the tool's Structure, Tool Navigation, Data Import/Export. Technical Training: System administration (e.g. user creation, access granting, etc), End user machine connection and configuration, System integration - Data source connection, Application Programming Interface (API). Support: Functional support - consultation from a qualified actuary as and when required. Technical support - Seven (07) User Licences are required for the period of 3 years, Technical end-user support as and when required.

foreigners who may have had accidents within the borders of the country. The RAF head office

is located in Centurion, Pretoria; with Customer Experience Centres situated in each province

around the country.

➢ Any falsified or misrepresentation information indicated above will lead to zero

scoring, and such bidders might be subjected to a restriction process.

NB: The RAF reserves the right to contact the clients listed above to authenticate

the information.

Experience: Scoring Matrix

2.1 The bidder/s must be an eligible, registered service provider/s in terms of the applicable laws of

the country.

2.2 The bidder/s must have a business continuity management plan, which must be available for

inspection by the RAF during the subsistence of rendering services to the RAF.

2.3 The Evaluation Criteria that are published with this Request for Proposal/ Bids will be used to

assess bidders’ responses and no amendment shall be made after the closing date of a bid. Bid

Demonstrate: DBMS and SharePoint Online.

Importing very large datasets (millions of records). 1

Mapping fields without requiring programming 1

Automatic validation checks. Eg, flagging missing data 1

points, detect outliers

Reconciliation between imported data and source files. 1

Ability to refresh data without rebuilding the model. 2

2. Data Preparation Creates incremental and cumulative triangles. 1

Groups claims by accident, reporting, payment period i.e. 1

Demonstrate: quarterly, monthly and annually.

Creates custom segments. Eg, by product type, 2

representation

3. Reserving Methods Basic Chain Ladder 2

Cape Cod 1

Demonstrate: Bornhuetter-Ferguson 1

Expected Loss Ratio 1

Average Cost per Claim 2

Frequency-Severity 1

4. Assumption Setting Selecting development periods 1

Calculating individual development factors 1

Demonstrate: Tail factor estimation 2

Expected loss ratios 1

Expected claim frequencies 1

Inflation assumptions 1

Discount rates 1

Risk adjustment assumptions 1

5. Development Factor Link ratios 1

Analysis Weighted averages 1

Arithmetic averages 1

Demonstrate: Geometric averages 1

Medians 1

Volume-weighted averages 1

6. Stochastic Reserving Mack 1

Bootstrap 1

Demonstrate: Process variance 1

Reserve distributions 1

Confidence intervals 1

reserve range 1

coefficient of variation 1

probability distribution 1

7. Discounting Importing a yield curve 1

Using spot and forward rates 1

Demonstrate: Discounting future cashflows 2

Unwinding 2

Present value calculations 1

8. Cashflow Projection Cashflow projection by period, e.g monthly, quarterly and 1

annually

Demonstrate: Discounted cashflows 1

Undiscounted cashflows 1

9. Scenario and Sensitivity Testing Inflation increases 1

Tail factor change 1

Demonstrate: Development factor changes 1

Discount rate changes 1

10. Audit Trail Who changed assumptions 1

Version history 1

Demonstrate: Model history 1

Previous valuations 1

Rollback capability 1

11. Reporting Reserve reports 1

Development factor reports 1

Demonstrate: Movement analysis 1

Waterfall reports 1

12. AI Capabilities AI-enabled data analysis and anomaly detection 1

AI driven forecasting, scenario and sensitivity analysis 1

Demonstrate: Automated generation of actuarial insights and reporting 1

AI generated outputs must be explainable, traceable 1

https://teams.microsoft.com/meet/330889967215098?p=cEU55lhzn6AoqoVdwF

Closing date: 08 october 2026 @ 11h00 AM

Note: Faxed and/or Emailed Proposals/ bids will not be accepted, only hand delivered and

couriered Proposals/ bids must be deposited in the tender box on or before the closing date

and time.

Table of contents for bid RAF/2026/00060

1. Part a: invitation to bid

2. Part b: terms and conditions for bidding

3. Sbd 3.1: Pricing schedule (firm prices)

4. Sbd 4: declaration of interest

5. Sbd 5: national industrial participation programme

6. Sbd 6.1: Preference points claim form

Signature of bidder:...................................................

Capacity under which this bid is signed:...................................................

(Proof of authority must be submitted e.g. company resolution)

Sbd 3.1

Pricing schedule – firm prices

(Purchases)

Note: only firm prices will be accepted. Non-firm prices (including prices

Subject to rates of exchange variations) will not be considered

Bid Bond: performance guarantee to the dti;

d. The contractor will submit a business concept for consideration and approval by

the dti;

e. Upon approval of the business concept by the dti, the contractor will submit

detailed business plans outlining the business concepts;

f. The contractor will implement the business plans;

Minimum functionality/qualifying score: 20

minimum score of 60

Tax compliance compliance or central supplier

Tax compliance status system pin code from the south african revenue service (SARS) and if not register

Tax compliance requirements

Tax compliance status (tcs) pin may be made via e-filing through the SARS

TCS Pin to verify Tax Status: Attached

Tcs pin is available but the bidder is registered on the central supplier database

Csd number

Csd number must be provided

Central Supplier Database of National

Central supplier database

Central Supplier Database (CSD)

joint venture agreement between the members should be provided

SBD 1: Completed, attached and signed

SBD 4: Completed, attached and signed

SBD 6.1: Completed, attached and signed

Proof of Construction Industry Development Board (CIDB)

Provide Tax TCS Pin to verify Tax Status: Attached

involved, each party must submit a separate Tax TCS Pin.)

Registered on the Central Supplier Database of National

https://secure.csd.gov.za/)

(3) years post-qualification as a Fellow member, registered and in

Standing will result in disqualification.

2. Tax compliance requirements

2.3 Application for tax compliance status (tcs) pin may be made via e-filing through the SARS

Submit a separate tcs certificate / pin / csd number.

2.6 Where NO tcs pin is available but the bidder is registered on the central supplier database

(Csd), a csd number must be provided.

Pricing schedule – firm prices

Points Allocation: 3 points

B-BBEE Details: Postal address

..........................................................................................

....................................................................................

Signature.....................................Name (in print)...................................

Date..................................................

Sbd 6.1

Preference points claim form in terms of the preferential procurement

Regulations 2022

This preference form must form part of all tenders invited. It contains general information and serves

as a claim form for preference points for specific goals.

Nb: before completing this form, tenderers must study the general

Conditions, definitions and directives applicable in respect of the

Tender and preferential procurement regulations, 2022

1. General conditions

1.1 The following preference point systems are applicable to invitations to tender:

• the 80/20 system for requirements with a Rand value of up to R50 000 000 (all

applicable taxes included); and

• the 90/10 system for requirements with a Rand value above R50 000 000 (all

applicable taxes included).

1.2 To be completed by the organ of state

(delete whichever is not applicable for this tender).

a) The applicable preference point system for this tender is the 80/20 or 90/10 preference

point system.

1.3 Points for this tender (even in the case of a tender for income-generating contracts) shall be

awarded for:

(a) Price; and

(b) Specific Goals.

1.4 To be completed by the organ of state:

The maximum points for this tender are allocated as follows:

Points points

Price 80 90

Specific goals 20 10

Total points for Price and SPECIFIC GOALS 100 100

1.5 Failure on the part of a tenderer to submit proof or documentation required in

i. End-user training plan for Ten (10)

ii. Technical training plan for Four (4) System Administrators/Superusers

iii. Training timelines and duration

iv. Delivery method (classroom, virtual, hybrid, self-paced modules)

v. Training materials to be provided (manuals, guides, recordings, job aids)

vi. Knowledge transfer plan during implementation phase

vii Provision for refresher training or onboarding of future board members

viii. Clear indication of associated training costs

The bidder/s must be an eligible, registered service provider/s in terms of the applicable laws of the country. The bidder/s must have a business continuity management plan, which must be available for inspection by the RAF during the subsistence of rendering services to the RAF. Companies or Directors included on the National Treasury register of Restricted Suppliers and/or Tender Defaulters will be automatically disqualified from the bidding process. The RAF will confirm the following prior to any award being made: that the bidder/s is/are registered on the National Treasury Central Supplier Database (CSD); the bidder’s tax status is compliant with the South African Revenue Service (SARS), in cases where the recommended bidder/s is/are non-compliant with SARS, the bidder/s will be allowed seven (7) working days to rectify their tax matters, if the bidder/s fails to rectify their tax matters, they will be disqualified once the 7th working day period lapses. The bidder/s shall have Professional Indemnity cover, which must be available prior to the award, which shall extend to include Privacy breach and cyber liability (extension/endorsement). The service provider/s agrees to indemnify and hold the Fund harmless from and against any claims, losses, damages, or expenses incurred as a result of any breach arising out of or attributable to the Service Provider’s negligent acts or omissions. The Bidder/s must implement or consider the principles of Privacy by Design and Privacy by Default when reviewing, redesigning and recommending business processes. The Bidder/s must ensure that all information stored electronically is protected through appropriate encryption, authentication, logging and monitoring controls where applicable. The Bidder/s must not transfer, store or process RAF information outside the Republic of South Africa without the RAF's prior written approval and compliance with applicable legal requirements. The Bidder/s must permit the RAF, or its authorised representatives, to conduct privacy, information security and compliance assessments or audits relating to the processing of RAF information.

Bidders must achieve a minimum score of 60 out of 70 points on functionality to proceed to further evaluation. Bidders must provide information on their clients for similar services rendered within the last five years, including project description, contract start and end dates, client name, contact person, address, email, and telephone number. Failure to provide this information will result in zero points for that criterion. Bidders must indicate compliance with mandatory requirements by ticking 'Comply' or 'Not Comply' and provide supporting documentation.