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Cost Containment

Local government is continually being asked to do more with less; having limited revenue which seems to be constrained more and more each year. Reducing costs associated with your cover isn’t only imperative to your bottom line, but vital in enabling you to continue providing adequate protection against seemingly endless exposure to risks.

This is why we consistently uphold cost containment measures for Member Councils that really can’t be matched.

Bigger is better

To start with, your costs are actively reduced by spreading the risk of exposure to claims, and higher member contributions across a large membership base. Added to this, our substantial buying power has enabled us to negotiate market-leading, long-term reinsurance treaties with underwriters.

We’re the largest local government self-insurance pool in Australia and our member contributions remain stable. This is demonstrated through our long history of contribution increases being below CPI.

Regular contribution rebates

Our members benefit from annual rebates. In fact, all councils have received rebates since 1998. To date we’ve handed back over $57 million to members in the form of surplus reimbursements. These are primarily due to low claims occurrences in the Liability, Property and Fidelity Guarantee Schemes:

  • Liability Mutual – provides for an annual Risk Management Incentive Bonus ($28.4 million to date)
  • Property Mutual – rebates 100% of surplus remaining when all claims have been finalised ($28.5 million to date)
  • Fidelity Guarantee Mutual – total contributions for 2012/13 rebated to members

SWM website graphic 3 - Rebates

Like to know more? Please contact us if you’d like to find out more about how we lead the market in cost containment for local government cover.