8 Ways Member-Led Mutuals Are Changing Risk Protection for Australian Councils

The risk landscape for local councils in Australia is changing. With the help of generative AI, cyberattacks are becoming more prevalent and posing a greater potential impact on communities. Physical and financial risk is climbing the same gradient as climate change and extreme weather events.

Councils are also at the forefront of delivering New South Wales’ net-zero emissions targets, creating both risks and opportunities in Environmental, Social and Governance performance. Traditional insurance options won’t always evolve at the same rate to offer the protection required to meet councils’ nuanced needs.

Member-owned and operated mutuals, like CivicRisk Mutual, provide councils with tailored risk management solutions to manage this changing environment as it unfolds. By adopting a collaborative, transparent approach to risk identification and mitigation, members can collectively raise the bar for their council and communities.

This article explores eight ways mutual protection achieves that.

What Advantages Do Member-Led Mutuals Offer?

There are many mechanisms to help protect your council. While switching from traditional insurance to a member-led mutual can be a big decision, it may also hold the key to targeted sustainable risk resilience over the long term.

Risk protection providers, including traditional insurance and member-led mutuals, don’t always offer the same services — or take the same approach to protecting your council. If you’re exploring your options, it’s a good idea to have a transparent conversation with a potential provider before committing to a change.

Understanding what’s out there is the first step. Here are some of the ways CivicRisk Mutual is redefining risk protection.

1. Members Can Influence Coverage and Premium Decisions

From finances to services and operations, members and their communities feel the direct impact of mutual outcomes. For that reason, every member has a say in how the mutual operates.

Through the annual member forum, AGMs and regular, transparent reporting, councils have a clear field of view and can shape operations through collaborative, informed decisions.

2. Member Councils Help Shape Service Offerings

CivicRisk Mutual offers members a suite of services, as we’ll see below. A focus on continuous improvement means that if one or more councils identify unmet needs, they can come together to discuss ideas and explore options to improve services.

This means the mutual can directly address members’ immediate and long-term needs and challenges — which is invaluable in times where councils’ risk landscape is continually changing.

3. Transparency Encourages Informed Decision-Making

Whether it’s contributions, annual surplus, claims outcomes or otherwise, all aspects of CivicRisk Mutual’s operations centre around transparency. Regular meetings and yearly reports keep all members informed.

One example of this shows up in the annual member contributions. Not only do member councils collectively design and agree upon the model that determines yearly contributions, but all members also have visibility into what other councils pay each year, and why.

4. Collaboration Emphasises Shared Purpose

Councils regularly come together to discuss challenges and wins, share lessons learned and develop a series of best practices in risk management for all members to benefit from. This collaboration allows councils to access fortified risk management programs without having to go through the hard lessons themselves.

Mid-Western Regional Council, for instance, overhauled its Enterprise Risk Management Framework, replacing it with the Risk Management Framework 2.1. This practical, scalable model for risk maturity and resilience has now been shared among all members, extending the positive impact to more communities.

5. Members Can Access Upskilling and Development Opportunities

To keep growing, we need to keep learning. CivicRisk Mutual offers a range of opportunities for professional growth — whether it’s at an individual or group level.

Members can access the following development programs:

• Risk and claims training sessions: Councils can learn about emerging risks and trending claims, then get protection program advice to ensure they’re comprehensively covered against those risks.
• Bespoke training: Members can receive customised training for teams, delivered remotely or in person, to address specific needs. For instance, training may cover road reserves and trees, as well as professional indemnity or crime.
• Study grants: Each year, councils can apply for up to $5,000 for external risk mitigation training, such as governance, compliance or business continuity.

6. Adaptability When Things Don’t Go as Planned

As part of a discretionary mutual, members are not necessarily locked into rigid contractual terms when making a claim — unlike traditional insurance. Even if a council isn’t covered for everything or a claim falls outside the agreed terms, the mutual can still offer the best value and the fastest recovery for communities.

Members understand that adversity can arise at any time. Discretionary cover can help members get the support they actually need, so everyone can get on with the job together.

7. Always Looking for a Better Way

One of the pillars upholding CivicRisk Mutual’s values is continuous improvement. That value extends to the services the mutual offers councils. Every three years, through the Continuous Risk Improvement Program, the mutual conducts audits through a third-party provider to gain clarity around how mutual members manage operations and risk.

The program is designed to help councils develop their risk management by identifying and addressing gaps early. In a world where prevention is better than the cure, all members benefit from these audits.

8. Investments Go Back Into Community Resilience Programs

CivicRisk Mutual’s Risk Enhance funding provides members with the opportunity to apply for a $20,000 grant each year to improve their risk programs. Most members take advantage of this cash injection and, provided there is a business case, use it for substantial improvements across their communities.

Below are real-world examples of how member councils have allocated the grant:

• Blacktown City Council’s Risk of Not Planting Trees project addressed rising ambient air temperatures through urban greening.
• Bayside Council transformed a dilapidated, barren stretch of land into a state-of-the-art community recreational hub with the Barton Park Precinct Upgrade project.
• Following the 2021 floods, Port Macquarie-Hastings Council uncovered severe erosion on a bridge that compromised the safety of almost 200 residents. Council used Risk Enhance funding to engage the community and secure the Rawdon Island Bridge project.

Each year, councils take advantage of this funding to find new and innovative projects to strengthen risk resilience.

Keep Your Council Future Ready

Member-led mutuals give councils practical control, sharper visibility and the collective strength to handle an increasingly complex risk landscape. With transparent governance and shared expertise, CivicRisk Mutual helps councils build resilience rather than react to events.

To explore how CivicRisk Mutual can support your council, get in touch with us.