What is RFP in insurance?

RFP stands for Request for Proposal. In insurance terms a RFP is a formal process that is initiated by an organization that needs insurance coverage in order to vet prospective insurance brokers. The information included in the insurance RFP enables the broker to customize their offering according to the needs of the organization.
Thereupon, the RFP process is designed to help businesses identify the insurance broker with exactly the right services, experience and carrier relationships to meet the company’s goals.
There are three groups of people who are involved in the process of RFP for insurance. The organizations who are seeking to buy the coverage, brokers and the consultants who are finding the right services for their clients, and insurance carriers who are competing to win the business.
Experience, services, security and coverage provided is easier with RFP in insurance. Apart from this the process delivers other benefits like securing the best services and benefits, exploring additional expertise and ensuring regulatory compliance.