SOLICITATION NOTICE
R -- Enhancing the Allowance for Insurance Fund Loss Analysis
- Notice Date
- 12/19/2023 10:39:49 AM
- Notice Type
- Solicitation
- NAICS
- 524298
— All Other Insurance Related Activities
- Contracting Office
- FARM CREDIT SYSTEM INSURANCE CORP McLean VA 22102 USA
- ZIP Code
- 22102
- Solicitation Number
- RFP-23-FCSIC-002
- Response Due
- 2/2/2024 2:00:00 PM
- Archive Date
- 02/16/2024
- Point of Contact
- Mark Bowen, Phone: 7038834386
- E-Mail Address
-
bowenm@fcsic.gov
(bowenm@fcsic.gov)
- Description
- FCSIC has developed an Allowance for Insurance Fund Loss Procedure to evaluate the level of risk an insured bank poses to the Insurance Fund. FCSIC employs a risk matrix that contains general measures, financial ratios, and thresholds for assessing insurance risk. The risk matrix is divided into low-risk, medium-risk, and high-risk categories. Any System bank that breaches a medium- or high-risk threshold is closely scrutinized to determine whether a loss to the Insurance Fund is probable and can be reasonably estimated. System bank losses could originate from investments, individual borrower loans and/or association direct notes. The probability of bank default related to any of these asset classes is generally very low. However, some associations are very large and a large association failure may cause its funding bank to default on its insured debt, exposing the Insurance Fund to losses. The following tasks will be required: Task 1: Review FCSIC�s Allowance for Insurance Fund Loss Procedure, Evaluate and opine on the appropriateness of the insurance risk matrix thresholds, and Develop enhancements to the current methodology for determining when a loss to the Insurance Fund is probable. Task 2: Develop a high-level project plan for creating a model that computes a probability of default for each System bank and association, and Develop a high-level project plan for building out a loss given default rating system for the banks and associations in the System. Additional advice and analytical support related to FCSIC�s risk management process may be requested.
- Web Link
-
SAM.gov Permalink
(https://sam.gov/opp/11a5ab9086c846a5864b97661c68279a/view)
- Place of Performance
- Address: McLean, VA 22102, USA
- Zip Code: 22102
- Country: USA
- Zip Code: 22102
- Record
- SN06916796-F 20231221/231219230049 (samdaily.us)
- Source
-
SAM.gov Link to This Notice
(may not be valid after Archive Date)
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