Minutes:
The Chair welcomed Sally Burlington, Head of Policy, and James Alexander, Lead Adviser for the Local Government Mutual (LGM), to introduce the item.
James stated that this paper provided members with an update on the LGA’s work to develop a Local Government Mutual. James update also included details:
· Around the ownership of the mutual (currently LGA unlimited);
· The upcoming Founding Member meeting, which is going to be Chaired by the Chair of the Resources Board; and
· Anticipated reaction from the insurance sector.
The Chair thanked both for the update and invited members to comment:
· Members discussed risk management, identifying risk and the differences in risk amongst local authorities and their individual profiles. This included talks the LGA and local government have held with the Fire Service Mutual.
· Discussions also took place around the work of the Australian Local Government Mutual, including the sharing of best practices.
· Discussions took place around how the mutual is now up and running, including the price of the LGM and comparisons with other providers. James also made reference to tax benefits and rewards if reserves are not spent.
· Members also discussed government regulation in this area of business; and advantages of the LGM.
The Chair thanked members for their comments and stated a future update will be given to the board.
Action
· Members noted the update.