Independent assessment endorses value of Scheme risk services

Risk Matters - Summer 2022

Independent assessment endorses value of Scheme risk services

WALGA and State Council take their responsibility as Trustee of your Scheme very seriously and regularly review the Scheme and the services provided to members. In the past 12 months they engaged consultants Mainsheet Capital to evaluate the effectiveness and value for money of LGIS’ Scheme risk services.

Mainsheet Capital’s final report provided very pleasing results. They recognised the value and achievements of the Scheme risk services whilst acknowledging the difficulty in assessing such a complex area with many variable influencing factors.

Ultimately the external consultants found that LGIS claims’ trends indicate that the risk mitigation program is effective.

We were very pleased with their findings as it confirms that our approach to risk management works.

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Key findings from Mainsheet Capitals report include:

  • LGIS claims’ trends support that the risk mitigation programs are effective.
  • LGIS claim number and costs trends have similar or more favourable outcomes than data from APRA and WorkCover WA.
  • Appropriate spend for risk mitigation services across population bands.
  • The spend for risk mitigation services is appropriately allocated in greater proportion to those local governments with larger claims values.
  • A substantial increase in program hours in one year leads to a net decline in claims costs in the following year, however this does not hold true over a two or four year period (suggesting other issues are influencing long-term claims trends).
  • The reinsurers underscored the importance of the Scheme risk services in their decision to offer reinsurance to the Scheme.

Our recent survey also demonstrated that members value the services with 83% of those surveyed saying that they had high levels of satisfaction in the Scheme risk services. Satisfaction differed across the membership reflecting how risk services are delivered across the state with 73% of metro and 83% of regional members having high levels of satisfaction.

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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.