​2021/22 has been one of the toughest years in the Scheme's history. Against a backdrop of an ongoing pandemic, global upheaval and natural catastrophes LGIS continued to deliver sustainable long term protection to the Western Australian local government sector.

Financial result

From a financial perspective, after a very strong year in 2020/21, where a surplus of $9.11 M resulted, 2021/22 was challenging with a reported deficit of $7.3 M

LGIS' financial position experienced income and expenditure pressure in 2021/22. It's important to remember that the very nature of our business – protection for loss events – is volatile.

Despite this year's deficit, and because of our prudent financial management, the Scheme remains well within our target capital range, ensuring that we remain strong and ready to respond when our members need us.

Investments are a large part of our income and they have been impacted by global events. Whilst our longer term investment performance remains sound, these circumstances have driven losses on funds under investment in 2021/22.

In addition the WA local government sector has had a poor claims year. Total claims' costs for LGIS escalated substantially and were $4.25 million over budget at end of financial year.

Delivering for members – new Scheme covers and risk services

Despite the year that's been, Scheme contribution increases for 2022/23 have been limited, particularly in comparison to the commercial insurance market.

LGIS is in a good financial position and the new financial year will see continued innovation.

Last year we successfully introduced pooled cover for Motor which delivered many benefits for members, particularly local, LGIS, claims management. 2022/23 will see increased pooled Journey Injury protection. Members will benefit from a more seamless approach to their risk financing from securing protections, tailored risk management, and managing claims.

Risk management is one of the key pillars of our mutual, recognising that members, their communities and the Scheme all benefit when risks exposures are contained. It's true that the sector's claims experience this past year was hit by unforeseeable events, however there have also been a large number of avoidable claims (particularly in motor).

That's why from 1 July we're delivering two new targeted risk programs; the first is motor fleet risk management and the second builds capacity to address the sector's growing exposure to cyber-crime.

Pleasingly the value and benefits of the Scheme continue to be recognised by the sector, with 100% of WA local government organisations having Scheme membership for 2021/22.

The LGIS Annual Report will shortly be available online to members. If you would like a hard copy, or for more information please speak to your LGIS account manager.