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.

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.

Financial result

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 2023/24 LGIS received over 3,900 claims and made claims payments totalling over $47.2 M.

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.

Delivering for members – highlights of the year

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. These included:

• Focus on injury management to improve return-to-work outcomes
• Psychological safe program delivered to create mentally health workplaces, identify psychosocial hazards and implement controls to reduce psychological injuries.
• 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 program 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

Read the reports

Make sure you're logged into the LGIS website before clicking on the link to read the full 2024 End of Financial Year Reports