Why is overtime often included in post-13 week calculations for workers’ comp claims?
This question is often asked when LGIS members receive the post-13 week calculation of weekly payments for workers’ compensation claims.
As we reflect on the year that was, we value your continued membership and we understand that one of the most significant exposures to local government is ensuring long-term reliable access to relevant and tailored risk financing and risk management support.
This question is often asked when LGIS members receive the post-13 week calculation of weekly payments for workers’ compensation claims.
The LGIS member services team comprises of five dedicated account managers with a portfolio of members. This means each member has one account manager – so you know who you’re speaking to and we know your organisation.
Cybercrime is by no means new. But now, attackers are getting even more sophisticated – targeting operational technology (OT) infrastructure. From tampering with production lines to meddling with water treatment plans, these attacks can have grave consequences.
The last Marsh Global Insurance Market Index showed a 29% increase in insurance pricing in the Pacific region. Perils such as cyclone, flood, or bushfire are significant drivers of the increases in the marketplace – especially for those that experienced losses in those areas.
In Australia, there are many events which have added to this pressure – including flood events over east and closer to home, Tropical Cyclone Seroja (now estimated at $400M in losses), the Wooroloo Bushfire, and tropical lows. Whilst Cyclone Seroja was not the Scheme’s largest event, it was the first time a number of local governments filed a claim from a single event.
A proposed NSW class action relating to the Spring Farm development – where approximately 3500 homes are being affected by subsidence – is targeting the local government. It is hard to quantify the potential damages in a liability claim relating to that many houses on Sydney’s fringe but it’s fair to say it’s not insignificant and further highlights the exposure.
The Scheme has done well to insulate the membership from market pricing.
Pleasingly, the majority of our members received only single digit increases to their 2021/22 contributions; the exceptions are where asset values and/or wages have increased, or due to the member’s adverse claims experience.
Further, the Scheme released another $2M contribution credit package to assist members with their membership costs.
Our current climate is an “underwriting driven” hard market, where indemnity providers are being forced to ensure they can deliver a profit (claims and general expenses below 100% of premiums income, and not rely on investment income to make their profits). Indemnity providers are now focused on two key aspects; pricing and coverage.
LGISWA is not immune to the impacts on the wider insurance market (as we buy indemnity protection). However, we were fortunate to have been able to avoid many of these pressures and limit coverage withdrawals witnessed in the general insurance market.
We are aware of a number of entities engaged in waste, bushfire and planning (similar activities undertaken by local governments) that have seen +50% increases in price, reduction in limits and coverage withdrawal.
The level of information about members’ operations and controls has been a highlight of this renewal. Indemnity providers are more focused on the controls and your local government’s appetite to adopt recommendations across different areas of risk such as liability, cyber and property.
A few members have raised their concerns over the volume of information required for renewal. Local government is a complex operation and is responsible for significant and volatile hazards. Our deep understanding of local government, your exposures and risks assist us in limiting the demand, but this requirement for detail will continue.
Cyber risk awareness has been building and now is fully entrenched across the insurance industry.
Since early 2019 the London markets have been pushing for clarity, and now in 2021 we see all markets align on their intent in relation to cyber risks. Public sector (all levels of government) is considered high risk, borne of claims’ experience or not.
The number of restrictions placed through the protection program at this renewal (21/22) is likely to continue for the next few years. Whilst there is an improvement in awareness of cyber risk, there continues to be a lack of appreciation for the exposure.
LGIS and Marsh Advisory is well advanced in its planning to
assist local governments to identify, prioritise and action appropriate strategies.
Significant weight is applied by the Mutual’s indemnity providers on risk management practices and controls implemented by members; there will be a renewed focused on councils’ approach
to the recommendations and close-out of these risks, spanning
all areas of the Scheme.
The conditions we see today are not going away anytime soon
and it is in times like these that the LGIS Scheme’s benefits
really shine through:
If you have any questions on the above, please reach out to your LGIS member services account manager.
With the introduction of the Workplace Health and Safety (WHS) Act 2020 (the Act), there are changes to the workplace health and safety laws in Western Australia – but what does this mean for you?
As we reflect on the year that was, we value your continued membership and we understand that one of the most significant exposures to local government is ensuring long-term reliable access to relevant and tailored risk financing and risk management support.
Hand-arm vibration (HAV) is the vibration transmitted to a person’s hand and arm when using hand-held power tools.
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.
