1. Clarity in allocation of the key areas of risk.
2. Financial benefits from reduced legal fees and reduction on resource needs.
3. More effective management of key areas of risk.
4. Reduced time and confrontation negotiating contractual responsibility and indemnity matters.
5. Enabler to greater industry collaboration.
6. Potential for reduced insurance premiums.
7. Cost effective and efficient means of improved risk management for small and medium sized enterprises (SMEs).

It is believed that the industry as whole will make a significant financial saving from an effective implementation of the IMHH Scheme. It is impossible to put precise figures on this saving but industry discussions have suggested that a saving in legal fees of £17MM per annum may be possible. In addition to this there are the internal costs of all the parties involved in claims and counter claims which must be significant. The benefit across the industry could exceed £20MM per annum. Whilst these figures are merely indicative, they do reinforce that the potential prize is worth pursuing.

There may also be benefit in reduced insurance premiums. The legal burden incurred by the oil and gas industry is also, to some extent, reflected in the insurance industry. Reduced claims and counter claims may lead to a reduced level of legal fees for insurers which would hopefully have a knock-on effect on insurance premiums. However, risks in the industry will not change: the IMHH Scheme is simply a method of allocating liability. The IMHH Scheme should reduce the need for “double insurance” but does not remove the need for insurance altogether.