Appointment of a reinsurance broker for insurance soc ltd (5-Year contract)

The Land Bank requires the appointment of a reinsurance broker to provide brokerage services to Insurance SOC Ltd for a period of five (5) years. Bidders must tender strictly in accordance with the scope of work supplied by the Land Bank, unless officially amended. The RFP is governed by South African law.

Briefing session: may be held if the Land Bank deems it necessary. If indicated in the RFP, attendance is compulsory and failure to attend results in disqualification. Venue (if held): Land Bank Head Office, Lakefield Office Park, Building A, First Floor, 272 Lenchen Avenue (Cnr of Lenchen Avenue and West Avenue), Die Hoewes, Centurion.

Closing date: 1 December 2026 at 09:00.

Submission method: one original bid plus one soft copy on a USB Flash Drive. The tender number and subject must appear on the front cover of the original.

Closing time: 09:00 on 1 December 2026.

Late bids will not be accepted.

Bids must be submitted to the Land Bank by the closing date and time.

No entity may be involved in more than one bid for this RFP; involvement in more than one may lead to disqualification.

Any material change in the control or composition of a bidder after submission requires prior written approval from the Land Bank; failure to seek approval may result in exclusion.

Returnable documents: the bid must include all required forms and documents as specified in the RFP, including the signed acknowledgement of these terms and conditions.

Evaluation will consider the bidder's compliance with the RFP requirements.

Bidders must be registered with National Treasury and listed on the Government's Central Supplier Database.

Bidders must not be involved in more than one bid for this RFP.

Bidders must not have withdrawn their bid after the advertised closing date and time.

Bidders must not have failed to sign a contract when called upon to do so.

Bidders must not have performed any contract unsatisfactorily or breached any contract condition.

Bidders must not have acted fraudulently, improperly, or in bad faith towards the Land Bank or any government department or public body.

Bidders must not have made misleading or incorrect statements in their bid.

Bidders must not have caused the Land Bank damage or incurred costs that could not be recovered.

Bidders must not have instituted court proceedings against the Land Bank in bad faith.

Bidders must not have been found guilty of a serious breach of any law during the preceding 5 years.

Bidders must not be on the National Treasury's database of restricted suppliers or register of tender defaulters.

The Land Bank reserves the right not to accept any bid, including the lowest priced, and may accept a bid in whole or in part.

The services required are the appointment of a reinsurance broker to provide brokerage services to Insurance SOC Ltd for a period of five (5) years.

Bidders must tender strictly in accordance with the scope of work supplied by the Land Bank, unless officially amended.

The bidder must have the necessary skills, knowledge and experience to provide the services.

Prices must be quoted exclusive of VAT, with VAT shown separately at the standard rate on the tax invoice.

The Land Bank may accept a bid in whole or in part; if accepted in part, the price will be adjusted according to the pricing schedule in the bid.

The successful bidder shall not increase prices for the duration of the agreement.

Prices quoted must be exclusive of VAT; VAT must be shown separately at the standard rate on the tax invoice.

The successful bidder shall not increase prices for the duration of the Service Provider Agreement.

The Land Bank may accept a bid in part; if so, the price will be adjusted according to the pricing schedule in the bid.

The Land Bank may require the successful bidder to furnish security for the fulfilment of the Service Provider Agreement.

Bidders must be registered with National Treasury and listed on the Government's Central Supplier Database.

Bidders must be in possession of all necessary approvals, registrations, certificates, permits, licenses and authorisations to perform the services.

Bidders must not be on the National Treasury's database of restricted suppliers or register of tender defaulters.

Bidders must not have been found guilty of a serious breach of any law during the preceding 5 years.

Contract duration: five (5) years.

The successful bidder must sign a written contract before commencement of services.

The contract will comprise the Service Provider Agreement, these Terms and Conditions, the General and Special Conditions of Contract, and any schedules.

The bidder's bid response, together with the contract documents, will form the Service Provider Agreement upon receipt of the Land Bank's letter of acceptance/intent.

The successful bidder shall not increase prices for the duration of the agreement.

Bids are binding and irrevocable for 120 business days from submission.

The Land Bank may cancel the RFP at any stage up to and including award, without reason or compensation.

If a bidder defaults (e.g., fails to conclude a contract, accept an order, furnish security, or comply with conditions), the Land Bank may accept another bid or call for new bids and recover additional expenses from the defaulting bidder.

Disqualification applies to bidders who withdraw after closing, fail to sign a contract, perform unsatisfactorily, act fraudulently or in bad faith, make misleading statements, cause damage, institute bad-faith court proceedings, or are found guilty of serious law breaches in the preceding 5 years.

The Land Bank may carry out site inspections or call for supporting documentation to verify bid information.

Bidders must inform themselves of all risks and circumstances affecting the bid and performance.

The Land Bank may amend or modify the RFP before closing; significant amendments may extend the closing date.

Confidentiality: the RFP is confidential; bids become the property of the Land Bank and will not be returned.

If any conditions are unacceptable, bidders must indicate which and propose amendments in writing on company letterhead; the Land Bank's legal advisor will review.

VAT must be shown separately at the standard rate on tax invoices.

The RFP is governed by South African law.

Bidders must direct any queries about the RFP, including specifications and evaluation process, to the contact person identified in the RFP before the closing date. The Land Bank reserves the right to cancel the RFP at any stage up to and including the award of the Service Provider Agreement.

Returnable documents:

• Annexure G (Bribery and Corruption Declaration): completed and signed, disclosing any bribery or corruption charges, convictions, or involvement in the last five years for each member, director, employee, or agent.

Bidders must submit a signed Annexure G (Bribery and Corruption Declaration). Any affirmative disclosure of bribery or corruption may affect eligibility, but the document does not specify automatic disqualification.

No specific compliance requirements beyond the bribery and corruption declaration are stated in the provided document.

The Land and Agricultural Development Bank of South Africa (Land Bank) is procuring the appointment of a reinsurance broker to provide brokerage services to its wholly-owned subsidiary, Land Bank Insurance Company (SOC) Ltd (LBIC). LBIC provides insurance and risk management solutions to the agricultural sector, including crop, index, livestock and agri-asset insurance. The contract is for five years, from 1 July 2027 to 30 June 2032.

The broker must be a qualified professional and authorised Financial Services Provider (FSP) to deliver non-life reinsurance brokerage services. Services include risk assessment and placement, actuarial analytics, international market access, claims handling, technical reinsurance accounting, relationship management, and capacity building. The objective is to secure optimal reinsurance protection, broaden market access, obtain technical advisory support, and align with LBIC's strategic and regulatory requirements, including IFRS 17 and SAM/Solvency II.

Closing: 1 December 2026 at 11:00

Briefing session (non-compulsory): 11 November 2026 at 11:00, held virtually on Microsoft Teams; link provided in the tender document.

Written questions of clarification deadline: 16 November 2026 at 16:00

Written responses to clarifications: 18 November 2026 at 16:00

Tender validity period: 120 business days from closing date.

Bidding and technical enquiries

• Contact person: Mr. S. Mthombeni
• Email: [email protected]
• Telephone: (not clearly stated in document; tender record and extraction do not provide a number)

Expression of interest notification

• Send company details (name, contact person, phone, CSD number, B-BBEE level, email) to: [email protected]

Submission address:

Land Bank Head Office, Tender Box

Lakefield Office Park, Block A, first floor

272 West Avenue

Die Hoewes, Centurion

Submission method: hand delivery or courier to the tender box at Land Bank Head Office reception.

Submission address:

Land Bank Head Office, Tender Box

Lakefield Office Park, Block A, first floor

272 West Avenue

Die Hoewes, Centurion

Closing time: 1 December 2026 at 11:00. Late bids are rejected.

Required copies: 1 original proposal and 1 soft copy (USB) containing identical information. Separate annexures/files must be named accordingly on the USB and hard copy.

Returnable documents (complete, sign and submit):

• SBD 1 (Invitation to Bid): bidder details and offer signature.
• SBD 4 (Bidder's Disclosure): declares any relationship with state employees or the procuring institution; a declared conflict of interest makes the bid non-responsive.
• SBD 6.1 (Preference Points Claim): claims B-BBEE preference points under the 2022 PPPFA regulations.
• Pricing schedule: completed using the provided template, in non-erasable ink.
• FSP licence: proof of a valid FSP licence from the FSCA.
• Professional indemnity cover: proof of at least R10,000,000, or a signed undertaking to provide it within 5 working days of appointment.
• Crop reinsurance experience undertaking: signed letter confirming at least 5 years' experience and a minimum R200 million crop premium.
• Tax compliance status (TCS) PIN from SARS and tax clearance certificate.
• CSD proof of registration.
• B-BBEE certificate or affidavit.
• CIPC documents: ID copies of directors/owners, share certificate; for trust shareholders, Trust Deed, Letter of Authority and certified ID copies of trustees and beneficiaries.
• Detailed company structure up to the ultimate beneficial owner (UBO), with supporting documents for each layer.
• Vendor Accreditation Form (Annexure A).
• Bidders Disclosure Form (Annexure B).
• Covenant of Integrity Declaration (Annexure C).
• FICA requirements/KYC documents (Annexure D).
• Bribery and Corruption Declaration (Annexure G).
• Proof of authority to sign (company resolution).
• Banking details on original letterhead.

Additional submission notes:

• Bids must be on official forms, not re-typed.
• The successful bidder will sign a written contract form (SBD7).
• Where consortia/JVs/subcontractors are involved, each party must submit separate TCS/CSD details.
• Essential documents requested during evaluation must be provided within 5 working days, otherwise the bid may be deemed non-responsive.
• A false declaration disqualifies the bid.

Evaluation occurs in three stages:

Stage 1 – Mandatory requirements (pass/fail):

• Valid FSP licence issued by the FSCA authorising reinsurance advisory services under the FAIS Act.
• Proof of professional indemnity cover of at least R10,000,000, or a signed undertaking to provide it within 5 working days of accepting appointment.
• Signed undertaking of minimum 5 years' crop reinsurance experience with at least R200 million crop premium.
• Completed pricing schedule using the provided template.
• Bidders who fail any mandatory requirement are immediately disqualified.

Stage 2 – Technical/Functionality evaluation (scored out of 100):

• Agricultural reinsurance brokering experience (non-crop): maximum 10 points. At least 3 years' experience required; 8+ years scores 10, 5-8 years scores 8, less than 3 years scores 0. Evidence: signed testimonial letters on client letterhead with contact details and contract period, dated within 10 years of closing.
• Crop reinsurance brokering experience: maximum 20 points. At least 5 years' experience required; 10+ years scores 20, 8-10 years scores 15, 5-8 years scores 10, less than 5 years scores 0. Evidence: signed testimonial letters as above.
• Proposed team experience and qualifications: maximum 15 points (combined). Team lead must have NQF 7, other team members NQF 6. Requirements: Team Lead/Account Executive ≥15 years reinsurance experience; Claims Specialist ≥7 years; Reinsurance Accountant ≥8 years; Technical/Treaty Specialist ≥5 years. Reinsurance experience: Team Lead ≥10 years agricultural insurance/reinsurance; at least one additional member ≥5 years crop portfolio experience. Average tenure ≥3 years with firm. Evidence: CVs with qualifications.
• Methodology and approach: maximum 25 points, covering:
• Minimum 3 comparable crop reinsurance treaties (at least 1 proportional, 1 non-proportional, 1 facultative) – 10 points; 0 if fewer than 3. Evidence: structural diagram, retention/limit structure, layer chart, rate on line, signed placement confirmation or broker slip.
• Catastrophe modelling evidence – 5 points. Specify tool, provide PML calculations (min 1:50 and 1:100 return periods), model provider, simulation output, exposure metrics, capital impact analysis.
• Competitive placement evidence – 5 points. Documented benchmarking, rate-on-line comparison, or market quotation summary.
• Claims recoveries and reinsurance accounting capability: maximum 30 points. Submit 2 comparable claims/recovery case studies (within 5 years) – 3 points; ageing analysis reports – 3 points; loss bordereaux or analysis reports – 3 points; system screenshots with timestamps – 3 points; settlement and reconciliation records – 3 points; 2 sample quarterly or annual technical accounts (within 3 years) – 3 points; settlement confirmations – 3 points; payables & receivable ageing reports – 3 points; clean bordereaux – 3 points; system screenshots – 3 points.

Minimum qualifying score: 70 out of 100. Bidders below 70 are disqualified.

Stage 3 – Preference and financial evaluation (price and specific goals):

• Only bidders passing stages 1 and 2 proceed.
• The 80/20 preference point system applies under the PPPFA 2022.
• Price and B-BBEE specific goals are evaluated. A valid B-BBEE certificate is required to claim specific goals.
• SBD 6.1 (Annexure I) must be completed in full at bid closing.

Additional evaluation considerations:

• Land Bank may conduct a due diligence on the preferred bidder, including financial analysis, civil judgements, criminal convictions, pending litigation, performance history, and reputational harm.
• Bidders may be invited for oral interviews or presentations.
• Unduly high or low tendered rates may trigger financial risk analysis and disqualification.
• Non-compliance uncovered during evaluation may be corrected within a negotiated period; failure leads to award to the next ranked bidder.

Background

• Land Bank Insurance Company (LBIC), a wholly-owned subsidiary of the Land and Agricultural Development Bank of South Africa, provides insurance and risk management solutions to the agricultural sector. LBIC operates only in South Africa and focuses on agricultural insurance. The crop insurance market in South Africa is estimated at R2.5 billion in premium income, with LBIC holding the second-largest market share at 33%. Products include crop insurance for hail, frost, wind and yield losses from adverse weather.
• LBIC operates in a highly volatile environment with severe climatic risks. Reinsurance is required to reduce earnings volatility, protect the balance sheet, sustain operations and unlock capital relief.

Scope of work

• The appointed reinsurance broker will provide comprehensive non-life reinsurance brokerage services for LBIC covering crop insurance, index insurance, livestock insurance and agri-asset insurance.
• The contract runs from 1 July 2027 to 30 June 2032 (5 years), continuing after the current broker's contract expires on 30 June 2027.

Required services (detailed in the terms of reference):

• Risk assessment and placement: design and structure reinsurance programmes proportionate to risk exposures; catastrophe management; transactional services and specialist risk advice across treaty and facultative placements; negotiate competitive placements; benchmarking analysis.
• Actuarial analytics and insights: predictive analytics, seasonal forecasts, actuarial modelling of claims experience; support on economic capital modelling; training, workshops and thought leadership on reinsurance modelling, catastrophe modelling, climate scenario analysis; credit rating updates; input on SAM and Solvency II requirements; innovative capital solutions (e.g. ART).
• International market access: leverage relationships with reputable global reinsurers; monitor regulatory developments; assist with policy and reinsurance wording; ensure compliance with IFRS 17 and other financial reporting standards; facilitate annual international reinsurance market visits.
• Claims handling: professional claims advocacy and recovery services; identify and manage uncollected balances; maintain auditable claims systems; loss trend and root-cause analyses; pursue large loss recoveries; cash call recoveries.
• Technical reinsurance accounting: accurate and timely processing of reinsurance accounts; calculate commissions, claims recoveries and brokerage rebates; deliver quarterly statements of account; support data accuracy for regulatory reporting; premium adjustments and commission reconciliations.
• Relationship management and technical support: provide an experienced dedicated relationship team; plan and facilitate annual market visits; provide analytical tools, dashboards and performance metrics; maintain a record of successful international placements with financially sound reinsurers; ongoing technical advisory services.
• Servicing, administration and capacity building: advise on capital and reinsurance optimisation; quantify economic costs and benefits of reinsurance; support exposure rating and pricing; deliver training to LBIC staff; conduct bi-annual technical workshops; provide periodic performance reviews and strategic recommendations.

Methodology and approach is scored as part of the technical evaluation (sub-criteria under Stage 2, maximum 25 points). Bidders must demonstrate:

• Minimum 3 comparable crop reinsurance treaties, including at least 1 proportional (quota share), 1 non-proportional (stop loss or XoL), and 1 facultative programme for crop business. 0 points if fewer than 3 treaties are submitted. Documents older than 5 years receive 5 marks.
• For each treaty: structural diagram, retention and limit structure, layer chart, rate on line (for non-prop), signed placement confirmation or broker slip (redacted allowed).
• Catastrophe modelling evidence: specify the tool used and provide examples with timestamps, including PML calculations (minimum 1:50 and 1:100 return periods), model provider, simulation output summary, exposure metrics, and capital impact analysis.
• Evidence of competitive placement: documented benchmarking analysis, or rate-on-line comparison table, or market quotation comparison summary. 0 points if none submitted.

The methodology must address all activities of the scope of work, including risk assessment, placement, actuarial support, claims handling, technical reinsurance accounting, and relationship management. Bidders should also note that the final evaluation stage (preference and financial) uses the 80/20 system under PPPFA 2022.

Company experience (scored under Stage 2):

• Non-crop agricultural reinsurance brokering (asset and/or livestock): at least 3 years' experience required. 8+ years scores 10; more than 5 but less than 8 years scores 8; less than 3 years scores 0. Evidence: signed testimonial letters from clients on letterhead, with contact details and contract period, dated within 10 years of closing.
• Crop reinsurance brokering: at least 5 years' experience required. 10+ years scores 20; more than 8 but less than 10 years scores 15; 5 to 8 years inclusive scores 10; less than 5 years scores 0. Evidence: same testimonial letter requirements.

Proposed team experience and qualifications (maximum 15 points):

• Team Lead / Account Executive: NQF 7, ≥15 years reinsurance experience.
• Claims Specialist: NQF 6, ≥7 years reinsurance claims experience.
• Reinsurance Accountant: NQF 6, ≥8 years reinsurance accounting experience.
• Technical / Treaty Specialist: NQF 5 (likely NQF 6, but document says NQF 6 for team), ≥5 years relevant experience.
• Team Lead must have ≥10 years agricultural insurance/reinsurance experience.
• At least one additional team member must have ≥5 years crop portfolio experience.
• Average tenure of the team with the firm must be ≥3 years.
• Evidence: CVs of the proposed team with copies of relevant qualifications attached.

Records and integrity requirements:

• The tenderer must disclose any conviction of directors, employees or agents for prohibited practices in connection with tendering or provision of services during the 5 years preceding the date of the declaration.
• The tenderer must provide details of any dismissal or resignation of any director/employee/agent implicated in prohibited practices, and the measures taken to prevent future occurrences.
• Land Bank has the right to inspect the tenderer's records for any awarded business; records must be preserved for at least 3 years after the conclusion of each transaction.

Pricing schedule instructions:

• Bidders must price using the provided template, quoting for each year of the 5-year period.
• Activities to price: Risk Assessment/Portfolio Analysis of Crop Reinsurance Business; Actuarial Support, Analytics, Modelling and Insights; Reinsurance Advice and Contract Management; Technical Reinsurance Accounting and Claims Handling; Technical Support (e.g., Complex Risks, Advice, ART); Reinsurance Placement & Other Services; Training, Workshop and Knowledge Sharing; Any other costs.
• The schedule captures subtotal for five years excluding VAT, VAT, and grand total including VAT.
• Prices must be valid for 120 days and cover the entire contract duration, including provision for price increases.
• All prices exclude VAT, with VAT shown separately.
• The schedule must be completed in non-erasable ink; correction fluid/tape is not permitted.
• Pricing assumptions, excluded costs, and estimated costs must be documented. No price adjustments will be entertained.
• Unpriced items must be explicitly stated; no additional costs will be accepted during the contract.
• The mandatory pricing schedule is a pass/fail requirement – it must be submitted using the template.

Pricing format

• Pricing must follow the provided price schedule template. Items include risk assessment/portfolio analysis, actuarial support, reinsurance advice and contract management, technical reinsurance accounting and claims handling, technical support, reinsurance placement and other services, training/workshops/knowledge sharing, and any other costs.
• Prices must be quoted for each year of the 5-year contract (Years 1-5), with totals excluding VAT and a grand total including VAT.

Price instructions:

• Complete the schedule in non-erasable ink; correction fluid/tape not permitted.
• Prices valid for 120 days and must cover the full contract duration, including provision for price increases.
• All pricing must exclude VAT, with VAT shown separately.
• All assumptions, excluded costs and estimated costs must be clearly documented.
• No price adjustments will be entertained; the pricing document is assumed complete and covers all costs.
• Unpriced items must be explicitly stated as such – no additional costs will be accepted during the contract period.

Other financial requirements:

• Professional indemnity insurance cover of at least R10,000,000 (mandatory requirement, with a signed undertaking alternative).
• Minimum crop premium experience of R200 million (as part of experience undertaking).
• Banking details must be submitted on original letterhead signed by CEO/Director(s).
• No bid security, bonds, or guarantees are mentioned in the document.

Mandatory registrations and licences:

• Financial Services Provider (FSP) licence issued by the Financial Sector Conduct Authority (FSCA), authorising reinsurance advisory services under the FAIS Act.
• Registration on the National Treasury Central Supplier Database (CSD).
• Tax compliance status (TCS) PIN issued by SARS, verified via CSD or SARS e-filing. A printed TCS certificate may be submitted.
• B-BBEE certificate from a SANAS-accredited rating agency or a sworn affidavit (for qualifying entities).

Eligibility restrictions:

• Bids are not considered from persons in the service of the state, companies with directors who are state employees, or close corporations with members who are state employees.
• Bidders listed on the Register of Tender Defaulters or the List of Restricted Suppliers are automatically disqualified.
• A false declaration of information leads to exclusion.

B-BBEE requirements:

• The 80/20 preference point system applies under the PPPFA 2022. A valid B-BBEE certificate or affidavit must be submitted to claim preference points.
• SBD 6.1 (Annexure I) must be completed in full.

FICA and compliance:

• Bidders must submit Know Your Customer (KYC) documents as listed in Annexure D for FICA compliance. Land Bank will conduct PEP screening on the successful bidder.

Other compliance requirements:

• Companies with trust shareholders must provide Trust Deed, Letter of Authority and certified ID copies of trustees and beneficiaries.
• Detailed company structure up to the ultimate beneficial owner (UBO) is required.
• For consortia or joint ventures, signed agreements stipulating the work split must be provided.
• The successful bidder must sign a confidentiality agreement and a Service Level Agreement.

Contract term: 1 July 2027 to 30 June 2032 (5 years).

Service Level Agreement (SLA): The successful bidder must enter into a SLA with Land Bank before any work commences. The SLA forms the contractual basis for service delivery and performance measurement, and includes the General Conditions of Contract.

• No work may proceed without a signed SLA or other formal agreement from the Land Bank Procurement Department.
• If a bidder starts work without a signed SLA, it does so at its own risk; Land Bank is not liable.

Confidentiality: The bidder must sign a confidentiality agreement to protect Land Bank data and information.

Amendments: Land Bank reserves the right to amend the terms of reference at its sole discretion.

Due diligence and award: Land Bank may perform due diligence on the preferred bidder, including financial analysis, criminal conviction checks, pending litigation, performance history, and reputational harm. The outcome may affect the award. If the preferred bidder does not comply with corrective measures, Land Bank may award to the next ranked bidder.

Interviews: Land Bank may invite bidders to interviews or presentations as part of evaluation. Costs of such interviews are not borne by Land Bank.

The evaluation is conducted in three stages:

1. Stage One – Mandatory requirements: Pass/fail. Failure to meet any mandatory requirement (FSP licence, professional indemnity cover of R10 million, 5 years' crop reinsurance experience with R200 million premium, completed pricing schedule) leads to immediate disqualification.
2. Stage Two – Technical/Functionality evaluation: Scored out of 100. Bidders must achieve at least 70 points to proceed. Criteria include company experience (non-crop and crop), proposed team experience and qualifications, methodology and approach (including treaties, catastrophe modelling, competitive placement), and claims recoveries and reinsurance accounting capability.
3. Stage Three – Preference and financial evaluation: Price and specific goals are evaluated using the 80/20 preference point system under PPPFA 2022. Only bidders passing stages 1 and 2 proceed. A valid B-BBEE certificate is required for specific goals.

Additional notes:

• Land Bank may conduct interviews or presentations with shortlisted bidders.
• Due diligence may be performed on the preferred bidder.
• The preferred bidder may be asked to correct any non-compliance within a negotiated period; failure leads to award to the next ranked bidder.