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HomeMy WebLinkAboutExhibit ACITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO: James Reyes City Manager CDocuSigned by: �n b �. 89566EB73CAC668 FROM: Annie Perez, CPPO REFERENCES: Sole Source No. Director/Chief Procurement Officer 25-26-025 DATE: April 28, 2026 SUBJECT: Sole Source for Verisk Analytics, Inc. Market Research was conducted to determine whether Insurance Services Office, Inc. ("ISO"), a wholly owned subsidiary of Verisk Analytics, Inc. ("Verisk"), both located at 545 Washington Blvd., Jersey City, NJ 07310, is the sole source provider of the ISO ClaimSearch contributory database ("ClaimSearch"), on behalf of the City of Miami ("City") Risk Management Department ("Risk"). ClaimSearch is identified as a "contributory" industry database, meaning all users are members of ClaimSearch and must own or administer claims in order to be eligible for a membership subscription. Accordingly, only insurance carriers, self -insureds, risk pools, third party administrators ("TPAs"), etc. ("Participating Organizations"), are eligible for membership in ClaimSearch. The intent of the contributory database is such that all members of the insurance industry, including competitor organizations, agree to contribute their claims data for the greater good of preventing insurance fraud. On a daily basis, participating organizations electronically submit thousands of insurance claims in all lines of business including property, casualty, and automobile insurance. ClaimSearch automatically loads these claims into its database and the Participating Organizations use the proprietary system searches to find other claims filed by the same individual or business, either as a claimant or as an insured. ClaimSearch provides a comprehensive "match report" showcasing a claimants' complete history across casualty, property, and auto physical damage ("APD") claims. As a result, Risk can better determine if claimants who have filed claims against the City for bodily injury or workers' compensation claims have had previous and/or current accidents nationwide, or are professional claimants. Some features unique to ClaimSearch include: 1. ClaimSearch is the only contributory comprehensive all -claim and all -insurer database and system for claims processing and fraud detection; 2. Only insurance carriers, self -insureds, risk pools, TPAs, etc., are eligible for membership; 3. ClaimSearch is a proprietary solution aimed at fraud detection, where clients submit claims data, leading to a comprehensive "match report" showcasing a claimants' complete history across casualty, property, and auto physical damage ("APD") claims 4. ClaimSearch is considered part of best practices in claims management and is crucial for compliance with Florida's legislative requirements; 5. There are no direct competitors to ClaimSearch; and 6. According to Verisk, 95% to 98% of the insurance industry subscribes to ClaimSearch with over 1.8 billion claim records in the ClaimSearch database. Accordingly, pursuant to Sections 18-92 (a) (3) of the Code of the City of Miami, it is recommended that the requirements for competitive bidding be waived, and the above mentioned findings be approved; that ISO, a wholly owned subsidiary of Verisk, a non -local vendor located at 545 Washington Blvd., Jersey City, NJ 07310, is the sole manufacturer & distributor of ClaimSearch, and approving the Agreement with Verisk for the purchase of a ClaimSearch subscription for Risk, in the amount of One Hundred Six Thousand Fourteen and 00/100 Dollars ($106,014.00), allocating funds from the various sources of funds of Risk, subject to the availability of funds and budgetary approval at the time of need, is in the City's best interest. cSigned by: APPROVEDBY: A68C256F2C6A478_ James Reyes City Manager DATE: April 30, 2026 1 15:54:26 EDT