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More than just insurance

Friday, 28 June 2019

In 1993, local councils across Queensland banded together for the first time to pool capacity and expertise when handling their liability claims. 

It was a reasonably inauspicious beginning for an idea that would eventually grow into a multi-million-dollar self-insurance powerhouse, now projected to return up to $50 million to scheme members over the decade 2018 - 2028. 

In 2019, the local government sector continues to explore new ways to share and improve on the success of these insurance schemes as a new age of local government evolves. 

The journey so far 

  • In December 1993 the LGAQ established Queensland Local Government Mutual (LGM).  The object was to operate a mutual scheme to manage public liability and professional risks of members of LGAQ. In July 2015 LGM Assets was established and is a separate fund under the LGM Trust Deed to provide asset coverage for councils.

  • In May 1998 the Queensland Local Government Workers’ Compensation Self-Insurance Scheme (LGW) was established and granted a group workers compensation self-insurance licence collectively owned and run by councils.

  • This grew into a one-stop shop catering for the contemporary council’s public liability, asset and worker insurance and providing unrivalled value to members. These schemes now sit under the single banner of Local Government Mutual Services (LGMS). 

  • Since the schemes’ commencement, local government in Queensland has saved over half a billion dollars by having their insurance managed inhouse by JLT as Scheme Manager and insurance specialists. 

  • In March 2018, the LGAQ Board voted to collectively return up to $5 million per year to both scheme member councils, for such a period that material available surpluses exist in the schemes (over and above what is agreed to be an adequate prudential surplus margin).  


Here and now 

A year later we are pleased to confirm it is envisaged that annual returns at this level could be sustainable for a decade, to 2028.  

It’s a return that offsets the $4.7 million per annum the scheme member councils pay to be a member of the LGAQ. 

It means money for councils, communities and the continual improvement of the risk profile of the local government sector. 

Looking to the future 

The ongoing commitment of Queensland councils to cost stability and service excellence over the past 25 years has culminated in an exciting, new phase for local government’s self-insurance schemes. 

The LGAQ Board has approved a total of $9 million of surplus funds to be retained to support ground-breaking, new initiatives that further reduce council risk. 

This is on top of $6 million to fund projects like LG Sherlock, a world-first data analytics tool for councils. 


Local Government Association of Queensland
LG House, 25 Evelyn Street, Newstead Qld 4006


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