The VMIA is able to undertake the role of Insurance Adviser to the Alliance and can provide support to the Risk Adviser where required (including input into the Project Risk Analysis Workshop). The VMIA can be retained by all Victorian government agencies on a fee for service basis in the role of Insurance Adviser.
The key activities of the VMIA as Insurance Adviser to defined VMIA clients are as follows:
• assist with Project Risk Analysis;
• inform the allocation of risks within the alliance framework;
• articulate a best-for-state approach to insurances in the alliance expression of interest and RFP;
• assist the project Owner to articulate the approach to Owner-arranged Insurance versus Non-Owner Participant Arranged Insurance;
• develop the Underwriting Submission for placement either with VMIA or the commercial insurance market;
• review insurances of Non-Owner Participants;
• finalise and confirm agreed insurance arrangements for the alliance; and
• provide ongoing support to the alliance in relation to claims, premium adjustments and policy changes.
Where the VMIA is providing assistance as Insurance Adviser to non-VMIA clients, in addition to the above the VMIA would also:
• advise on the selection of the Insurance Broker;
• provide an independent assessment of the Insurance Program for the alliance and Non Owner Participants;
• review insurance documentation for the alliance and Non Owner Participants including policy wordings and schedules; and
• advise the Government and the alliance on claims handling protocols and on the resolution of any claims
The VMIA has an important role in providing impartial and independent advice to Victorian State Government clients involved in alliances. The VMIA recognises the inevitable tension that exists between an insurance program that maximises the good faith behaviour of Non-Owner Participants and optimises the transfer of potentially insurable risks by the alliance. By providing expert insurance and risk advisory services to State Government clients, the VMIA will be working to increase the transparency of decision making in relation to insurance procurement and aiding the skills of government personnel in alliance related insurance matters.