Small wins for your Scheme in 2022/23

Risk Matters - Summer 2024

Annual reports are now available!

The LGISWA Scheme protects $19.2 billion worth of assets; 15,000 motor vehicles; 19,820 local government workers; and 17,107 volunteer bushfire fighters. In 2022/23 we received 3,720 claims and made payments totalling over $43.8 million. The mutual indemnity scheme is as diverse and varied in our operations as any of our members across Western Australia.

At the close of 2022/23 LGIS returned a $0.9 million operating surplus despite expenditure pressure and a deficit from the previous year. This was a positive result for the mutual Scheme which doesn’t operate to make a profit, but rather to serve and protect the local government sector.

Globally and at home conditions were difficult – with inflationary pressure, global uncertainty and natural catastrophes. Against this backdrop LGIS continued to deliver sustainable long term protection to the Western Australian local government sector.

100% of WA local government organisations renewed their membership for 2023/24, recognising the value and benefits that LGISWA delivers to individual organisations and the sector as a whole.

Financial result

The 2022/23 operating surplus was a positive turnaround from the previous year’s deficit of $7.26 million. This was despite expense pressures, particularly from property, motor and workers’ compensation claims. Total claims’ costs for LGIS escalated substantially and were $6.29 million over budget

at the end of financial year.

Fortunately, despite these pressures, LGIS remains in a good financial position and the new financial year will see continued innovation. Our prudential financial management has ensured that the Scheme remained within our target capital range, so that your LGISWA remains strong and ready to respond when needed.

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Delivering to members with Scheme covers and risk services

Scheme contribution increases for 2023/24 were limited, particularly in comparison to the commercial insurance market.

2022/23 marked the second year of LGIS Motor protection; at-fault claims are high across the sector so we launched the motor fleet risk pilot program to investigate.

17 LGIS members participated in the program, they ranged from small regional members to large metropolitan cities. We assessed participants across three key areas – organisational commitment, driver management and vehicle management.

The pilot has allowed us to pinpoint key areas to reduce member accidents and in 2023/24 we’ll be developing a tailored fleet risk management program to be rolled out to all members.

Cyber is a challenging area for the sector, so in 2022/23 we launched our cyber pilot program. Working with a sample of
15 members the pilot allowed us to get a better picture of the sector’s cyber environment, including capability and capacity to address vulnerabilities.

You can read the findings of the LGIS cyber pilot program on the LGIS website.

Responding to changes in work, health and safety services, we developed and started delivering our psychological safe program in 2022/23. Designed to support our members in meeting their duty of care to provide a psychologically safe workplace the program includes new workshops, resources and services. Since its launch in August 2022, the program has been accessed by 76 members and 492 staff.

Our popular health and wellbeing program was revamped this year to provide members with more options to develop healthy behaviours and learn new skills. This year saw the introduction of financial wellbeing workshops, a timely service given the interest rates hikes and inflationary pressures in the past 12 months.

We engaged the Financial Counsellor’s Association of WA to deliver the workshops which have been accessed by 1,051 local government employees across the state.

As a mutual, we always strive to offer the best protections, products and services to our members. We put our members first in everything we do.

More transparency with a new format

This year’s reports are different from previous years. For the first time LGISWA has provided members with two reports providing an overview of our activity and achievements in 2022/23 financial year. These reports – 2023 The Year in Review and 2023 Annual Financial Report, should be read in conjunction with each other. This new format provides even greater transparency on our operations and finances. We have moved from using a special purpose report for our financial results and have used general reporting standards this year.

Both reports are available on the LGIS website. If you would like a hard copy, or for more information please speak to your LGIS account manager.

Have a question you'd like answered?

Each month we take your questions to one of our LGIS team members to answer.

If you want to submit a question for next issue, email us at [email protected]

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