The 2018 Local Government Risk Report for Australian Local Government, Aon’s 4th national risk survey of the sector with close to 100 risk management executives responding, delivers benchmarking updates and valuable insights about effective risk mitigation and transfer.
It has been a tumultuous time with a number of councils finding themselves in the full glare of the media’s spotlight – this report makes clear the human impact on local government risk, but reveals how more than half of all councils are failing to execute simple practices to rein in that risk.
Included is Aon’s local government insurance market overview with a focus on property, general liability and professional indemnity.
Top risks to local government
• infrastructure
• financial sustainability & stability
• health & safety
• cyber
• reputation
• human resources
• asset protection
• funding
• planning decisions
• weather
Key report highlights:
Finance first – not surprisingly the unrelenting challenge to do more with less ensured that the financial challenges of infrastructure, financial sustainability and stability lead the list of risks for local government. It’s been that way since Aon started this benchmarking series in 2015.
Human impact – health and safety, cyber, reputation and human resources concerns have all leapt higher as councils count the risk and cost of human impact. Many councils however are missing the chance to take simple steps to reduce human risks – it’s an opportunity to grasp.
Mother Nature – after a relatively benign 2017 nationally, weather dropped way down the list of risks. Soon after Aon’s survey concluded however, Mother Nature threw her curveballs: Darwin faced Cyclone Marcus; Tathra, NSW and Victoria’s South West were devastated by bushfires; North Queensland was flooded continuing with ongoing natural catastrophes in 2019.
Significant swing – there are signs that the status quo is under threat as councils seek out better insurance and risk management arrangements. Two years ago fewer than one in ten councils leveraged independent brokers and commercial insurance – today one in four is testing the market. Getting coverage right is critical – 86 percent of councils made claims in the last 12 months.
Click here to download the full report
*Copy supplied by AON
