The Owner selects the broker for an alliance project using the following selection criteria:
• previous experience in placing alliance risks;
• a demonstrable understanding of the alliance project risks;
• international presence or strong international alliances to assist in placing risk in overseas insurance markets; and
• an explicit commitment to maintaining consistency with the client service team.
While initially each Participant may be advised by its own broker, once a decision is made on who will be the principal, the principal should appoint the broker to supply the services to the principal. For example:
• If the insurance is to be Non-Owner Participant-controlled, then the Non-Owner Participant should be entitled to appoint its broker of choice (i.e. the Non-Owner Participant-arranged (NOPA) framework).
• The alliance should probably appoint a placing broker if it is collectively controlled (i.e. the alliance-arranged framework).
• The Owner appoints the broker to supply the services to the Owner (i.e. the Owner-arranged (OA) framework).