DBA Insurance Rate Agreement

The Department of State (DoS) is conducting market research to explore innovative and commercially viable approaches for structuring Defense Base Act (DBA) insurance coverage for U.S. Government contractors operating overseas. The objective is to better understand how the insurance industry structures DBA programs, allocates risk, incentivizes efficiency, and balances pricing stability with long-term sustainability. Some key points to consider include: • Are there other ways to price DBA insurance, besides a single flat rate, that could work well for a large Government-wide or multi-agency program? • What are some practical ways the Government and the insurer could share risk, such as sharing profits, issuing rebates, or adjusting pricing when results are better or worse than expected? • How can a contract be set up so contractors have stable, predictable rates, while still allowing insurers to manage risk over time? • How can claims handling, safety, and loss-prevention efforts be built into a DBA insurance program to reduce injuries and costs? The DoS is looking for creative models that could improve value, transparency, risk management, and administrative efficiency while remaining commercially reasonable for insurers and insured entities.