2023/24 proved an interesting year for the LGIS scheme and our members. There have been inflationary pressures, labour markets have been tight and skilled workers difficult to find, the workforce is ageing, and there has been substantial legislative change including the Local Government Act and a brand-new Workers Compensation and Injury Management Act.
Against this backdrop LGIS continued to deliver sustainable long-term protection to the Western Australian local government sector.
Our commitment to a mutual philosophy shone through. We’ve stood shoulder to shoulder with members during critical incidents and natural disasters. Unfortunately, significant adverse events impacted some of our regional members this year and we’ve done what we can to provide support throughout.
We’ve partnered with the sector to develop resources, and tailor protections to their needs. We’re committed to providing long- term, sustainable protection and risk management for all of our members.
The 2024 WA Local Government Convention over 8 to 10 October was an excellent opportunity to chat with members and talk about the issues that matter to you. Over 650 delegates attended from across the state and we appreciated the effort many made to seek out our team to provide feedback and ask questions.
Members are once again asking questions about fire safety for e-bikes, e-scooters and other light electric vehicles (LEV), alongside the installation of EV charging stations. This is an evolving risk area and members should consider the developing situation.
2023/24 proved an interesting year for the LGIS scheme and our members. There have been inflationary pressures, labour markets have been tight and skilled workers difficult to find, the workforce is ageing, and there has been substantial legislative change including the Local Government Act and a brand-new Workers Compensation and Injury Management Act.
The LGISWA Scheme now protects $19.4 billion worth of assets; 15,137 motor vehicles; 19,076 local government workers; and 18,054 volunteer bushfire fighters. In 2023/24 LGIS received over 3,900 claims and made payments totalling over $47.2M.
In 2023/24 we’ve achieved a better-than-expected result of $2.13 M. This is slightly ahead of budget, and a good result given last year’s surplus of $0.9 M, and the previous year’s deficit of $7.26 M.
It’s important to remember that the LGIS mutual Scheme doesn’t operate to make a profit, but rather to serve and protect the local government sector. This year’s result ensures the ongoing delivery of sustainable long-term protection to the Western Australian local government sector.
Capital adequacy is in keen focus for the Board of Directors. LGIS must maintain capital to make sure we’re in a sound position
to respond to changes in the legislative and claims landscape. Analysis by the Scheme’s actuaries, Scyne, recommended that we increase our retained capital. It’s for this reason that the Board decided to retain this year’s surplus in the Fund.
Investments are a large part of our income and they have performed well this year, making up a large component of this year’s surplus.
Our financial result experienced significant expense pressure, with claims performance remaining on the same trajectory
as 2022/23. Workers’ compensation is an area of substantial concern.
Total claims’ costs for LGIS escalated substantially and were $8.7 million over budget at end of financial year. This was driven primarily by the performance of the WorkCare portfolio.
In WorkCare the challenges haven’t changed compared to last year. Claims numbers remain relatively steady but costs are growing rapidly year on year. Claims are increasingly complex as psychological injury claims grow and claimants are getting older. In the last five years over 60% of claimants were aged over 50, many of these claims have arisen due to aggravation of pre existing injuries or a reduction in physical capacity.
Overall, the Scheme remains in a good financial position, ensuring that your LGIS remains strong and ready to respond when needed.
Despite the year that’s been, Scheme contribution increases for 2024/25 have been limited. Where members have experienced a greater than average contribution increase it directly reflects claims performance and profile.
Risk management has been at the centre of member benefits this year delivering real value for money to members. Over the past twelve months we’ve developed new risk guides and resources, delivered events to educate and connect the sector and implemented new services.
Workers’ compensation has been in our sights and we’ve taken a multi-pronged approach to supporting the sector in building capability and capacity to prevent and manage claims for better outcomes.
Our Psychological Safe program has been well received with members across the state accessing services to create mentally health workplaces, identify psychosocial hazards and implement controls to reduce psychological injuries.
Our Early Intervention Program, providing workers with access to physiotherapists, mediation, counselling and other allied health professionals is already providing anecdotal evidence that it’s having a material impact, reducing the complexity and costs of claims for workers involved in the program.
Our cyber risk initiative released two new practical resources to support the sector in identifying cyber vulnerabilities and improving its overall maturity. Going forward we’ve engaged a cyber security specialist to deliver hands-on workshops across the State to guide members in uplifting their cyber controls and plan for an incident. (See page 23 for workshop dates)
Check out the full LGIS 2024 companion reports ‘A Year in Review’ and ‘Annual Financial Report’ for more detail on your Scheme’s results. Both are available to members on the website Resources > Membership information.
The recent WA Local Government Convention was an excellent opportunity to chat with members and talk about the issues that matter to you. LGIS also appreciated the invitation from WALGA to provide members with an update at their AGM on our 2023/24 results and achievements. For more information, our end of financial year reports, A Year in Review and Annual Financial Report, are now available on the LGIS website or you can read the article on page 18.
By their very nature playgrounds have an element of risk, designed to challenge children and deliver development opportunities. They’re valued and sought-after amenities in every local government area across Western Australia. They also come with high levels of expectation from the community that they will be well designed, in appropriate locations and maintained in a condition that ensures safe and enjoyable experiences for children
The claimant (child) was travelling across a bridge in the playground and fell through a confined space causing a broken femur, cuts and bruises. The claimant alleged that the playground was unsafe and had design flaws that didn’t prevent children from injuring themselves.
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.
