In 2019, the WALGA State Council included the recommended strategy of “transitioning additional covers currently provided by the LGIS broking service into the mutual Scheme” in its resolutions.
In 2020, the Scheme completed phase 1 of this long-term transition, by offering protection across a number of types of coverage (e.g. Motor, Journey, Commercial Crime and Cyber, Personal Accident etc.), and therefore all the benefits your Scheme provides.
The motor portfolio protects approximately $780 million of fleet and plant assets across all Scheme members. Sixty eight percent of assets within the portfolio sit in regional WA and contribute 50% of the losses incurred. Metropolitan local governments make up the remaining 32% of assets and also contribute 50% to loss history.
Losses are typically driven by ‘own fault’ type claims, with 70% of the costs incurred by metropolitan local governments attributable to driver error, and further evidenced by the low third party recoveries, of which only 10% of total are incurred.
The stability in the portfolio has assisted the Scheme in offering members the benefit of a fully funded motor protection. The Scheme will carry a significant portion of the risk, minimising its cost of indemnity cover and releasing the benefits of Scheme arrangements back to members.
The model will provide the Scheme flexibility to provide further pricing stability, in an environment where cost escalation is in focus.
Before 2020 hit us with a curve ball, workplace mental health was already a significant issue for WA local governments. COVID-19 and the challenges of 2020 have compounded existing issues and the topics of mental health, stress management, and resilience are more pressing than ever for local government leaders, people, and risk managers.
In today’s day and age, cybersecurity is important to us all because it encompasses everything that relates to the protection of our sensitive data.
The LGIS health and wellbeing program is designed to assist members in creating a healthier workplace, improving awareness of health issues, lowering risk factors, and improving workers’ safety performance.
Members will be pleased to hear that LGIS will take control of the claims process and decision making. It is here that your Scheme distinguishes itself from traditional insurance. Transitioning your fleet protection across to the Scheme means your claims are handled by our local claims consultants and gives you the benefit of a single point of access for claims.
The objective of the LGIS team is to provide advice, guidance and management of claims to reduce downtime, potential liability exposures, and claims costs by prompt identification and processing.
From 30 June, all motor claims can be lodged at [email protected]
Your LGIS Scheme has been successful on the back of strong risk management practice. Fleet risk (including privately used vehicles for Council purpose) accounts for over $700M in assets, and there are certainly areas for improvement in implementing risk management around fleet policy.
Many local governments are not as risk aware in this space as they could be, and may consider procurement policy and driver access control adequate, these processes do little to influence driver behaviour.
LGIS will be implementing a risk gap analysis program which will provide members with an overview and score of their fleet risk programs. The assessment will include a review of areas such as:
A recent survey undertaken by WALGA for the High Occupancy Vehicle Survey Report, reported only 19 councils (of 33) had a fleet policy. Apart from potential physical loss, workers’ compensation, and loss of utility, a vehicle is a workplace for a large number of local government workers which equates to a WHS legislative exposure – highlighting the opportunity for work in this area.
The below table shows the historical experience of the motor insurance portfolio, from 2013 – 2020, indicating that members will benefit from risk management processes to reduce member-fault claims.
Fleet protection is most likely the fourth highest expense in a Member’s total Scheme contribution expenditure. The Board’s decision to pursue this model will provide for the expansion of a Scheme that has served the sector through over $58 million in returns and opportunity to ensure members continue to be protected in uncertain times.
For more information, please contact your LGIS member services account manager or Andrew Grieg on 9483 8867.
We are pleased to announce the continued transition of LGIS fleet protection across from traditional insurance placements to Scheme protection arrangements.
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public safety at local government facilities, places, and spaces.
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LGIS is the unifying name for the dedicated suite of risk financing and management services for WA local governments, established by the WA Local Government Association in conjunction with JLT Public Sector (part of the Marsh group of companies). LGIS is managed by JLT Public Sector (ABN 69 009 098 864 AFS Licence 226827).
Risk Matters, via this website, is designed to keep members, their staff and elected members informed on topical risk management and insurance issues and LGIS programs and services.
