Local governments have a duty of care to provide safe workplaces, with appropriate controls put in place for all hazards – this includes psychological hazards. The Work Health and Safety Act (WA) 2020 (WHS Act) states that a PCBU (person conducting a business or undertaking) must prevent and manage psychological injuries in order to ensure a healthy and happy workplace, a local government is a PCBU.
The mediation process is a great resource to use as part of your plan to create a psychologically healthy workplace.
From a financial perspective, after a very strong year in 2020/21, where a surplus of $9.11 M resulted, 2021/22 was challenging with a reported deficit of approximately $7.3 M
LGIS’ financial position experienced income and expenditure pressure in 2021/22. It’s important to remember that the very nature of our business – protection for loss events – is volatile.
Despite this year’s deficit, and because of our prudent financial management, the Scheme remains well within our target capital range, ensuring that we remain strong and ready to respond when our members need us.
Investments are a large part of our income and they have been impacted by global events. Whilst our longer term investment performance remains sound, these circumstances have driven losses on funds under investment in 2021/22.
In addition the WA local government sector has had a poor claims year. Total claims’ costs for LGIS escalated substantially and were $4.25 million over budget at end of financial year.
Over 120 people attended the CEO Breakfast or Local Government Risk Forum on Tuesday 6 September 2022, at Crown Perth.
Representatives from across the state — from Port Hedland to Esperance and everywhere in between joined together to network and explore current risk issues for the sector.
WorkCover WA is the government agency responsible for regulating and administrating the workers’ compensation scheme in Western Australia under the Workers’ Compensation and Injury Management Act 1981.
Businesses are prone to a host of disasters that vary from minor to catastrophic. The start of the COVID-19 crisis in 2020 was sudden, unexpected and incredibly difficult for many.
Despite the year that’s been, Scheme contribution increases for 2022/23 have been limited, particularly in comparison to the commercial insurance market.
LGIS is in a good financial position and the new financial year will see continued innovation.
Last year we successfully introduced pooled cover for Motor which delivered many benefits for members, particularly local, LGIS, claims management. 2022/23 will see increased pooled Journey Injury protection. Members will benefit from a more seamless approach to their risk financing from securing protections, tailored risk management, and managing claims.
Risk management is one of the key pillars of our mutual, recognising that members, their communities and the Scheme all benefit when risks exposures are contained. It’s true that the sector’s claims experience this past year was hit by unforeseeable events, however there have also been a large number of avoidable claims (particularly in motor).
That’s why from 1 July we’re delivering two new targeted risk programs; the first is motor fleet risk management and the second builds capacity to address the sector’s growing exposure to cyber-crime.
Pleasingly the value and benefits of the Scheme continue to be recognised by the sector, with 100% of WA local government organisations having Scheme membership for 2021/22.
Jonathan Seth, LGIS CEO will provide a detailed updated at the WALGA AGM on behalf of Peter Forbes, Chair of the LGIS Board on Monday 3 October. As always the LGIS team will be at this year’s WALGA Local Government Convention and ready to answer any of your questions.
2022 LGIS Annual Report
The LGIS Annual Report will be available online to members in October. If you would like a hard copy, or for more information please speak to your LGIS account manager.
Local governments are community makers, providing the places that create connection and a sense of belonging.
The City of Bunbury’s new youth precinct, Koolambidi Woola, has successfully married design and a strong risk management approach to deliver for the local community
The claimant, a cyclist, was riding his bike along a shared bike/footpath. He allegedly slipped on the path’s ‘slow down’ warning signage, injuring his ankle and knee. In his claim, the cyclist alleged that the signage was slippery and had a design flaw.
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.
