The insurance advisor selected should be a person or organisation capable of performing the specific tasks outlined below, and should be familiar with the local and international insurance markets that underwrite the risks of project alliances. The insurance advisor should be a member a relevant professional association such as the:
• Risk Management Institution of Australasia Limited;
• Australian and New Zealand Institute of Insurance and Finance;
• Institute of Chartered Accountants, Australia; and/or
• Institute of Actuaries of Australia.
The Owner should appoint the insurance advisor, and initially the duties and obligations should be to the Owner. During the later steps in the process (such as steps 10 and 11, assessment and recommendation of the insurance program) (refer to section 6.10 and 6.11 of the guidance notes), the insurance advisor may also have duties and obligations to the alliance.
The main tasks of the insurance advisor are to:
• identify the insurance requirements;
• participate in the Non-Owner Participant selection process;
• participate in selecting the insurance broker;
• advise on the underwriting submission;
• recommend insurance to the government and the alliance; and
• advise the government and the alliance on claims.
The appointment of the insurance advisor should be for the period starting from the procurement decision and continuing possibly during the defect warranty stage
The insurance advisor should be remunerated on a fee-for-service basis.