The total insurance risk transfer costs for an alliance project (including premiums, contractor margins, brokers' fees and commissions) are likely to be a material to any alliancing project's overall cost. Depending on the project's risk profile and the covers purchased, it may range from $4 million to $1 million for every $100 million of cover. Good guidance is therefore important to assist agencies manage what is likely to be a material project cost.
Insurance is a highly specialised and complex area and, to date, agencies have had little access to guidance about insurance for alliancing arrangements. However, there appears to be a strong appetite for guidance and for implementing processes that lead to better decisions.