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.
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.
At its core, LGIS is all about local governments working together to achieve best outcomes for their organisations, people
and community. LGSAG is one such initiative where we have collaborated with member representatives to ensure they can create a safe and healthy work environment for their workforce when it comes into effect sometime next year.
The Workers’ Compensation & Injury Management Bill 2023, currently before Parliament in Western Australia, will enact major changes to WA’s workers’ compensation scheme
when it comes into effect sometime next year.
The importance of employers following internal policies and procedures and keeping accurate records can’t be emphasised enough when effectively managing a worker’s compensation claim. Our first case explores the need to follow one’s own internal polices in the context of a worker’s compensation work related stress claim.
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.
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]
Welcome to our last edition of Risk Matters for 2023. We always enjoy an opportunity to catch up with members, and in the last quarter of 2023 there’s been plenty.
It’s summer! That time of the year when everyone is ready to celebrate and go on holidays. Tourists all across the country and within Western Australia flock to popular spots to relax and enjoy our beautiful state.
A woman in her 50s lost her balance and fell while stepping up over a concrete mound within a popular caravan park. She fractured her ankle and held one of our regional members liable for the injury and loss suffered, alleged to have been $190k.
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.
