Local Government Mutual opens for business

The Local Government Mutual is open for business with LGA member councils invited to find out how it can potentially provide a cost-effective alternative to traditional insurance services and save them money.


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Established by 14 councils, along with the Local Government Association, the Mutual is owned and operated for the benefit of its members and does not have shareholders expecting a return on their investment.

Instead, any future trading surpluses which may be achieved may be returned to members, or reinvested in the Mutual to further develop its products, or used as the members agree.

The Mutual will draw on best practice from other mutuals to use local government capabilities and resources to manage risk more effectively and, where possible, reduce the cost of risk. At the same time, it will continue to work with the insurance market to procure cost-effective risk transfer for large losses.

Brian Roberts, Director of the Local Government Mutual, said:

“The LGMutual has been set up by local government for local government and we are delighted it is now open for business. Since we’re owned and controlled by our members, everything we do is for their benefit and interest, and our goal is to provide value for money. 

“Each local authority member will contribute to the Mutual based on the risks they have covered. A fair price will be charged and each member’s contributions are set individually. Being a mutual also means that members can shape the kind of products and information they want.”

Ian Rogers, Director of the Local Government Mutual, said:

“There are a number of benefits to being a member of the Mutual. Joining is a relatively simple process and we encourage all LGA member councils to get in touch to find out more, book an appointment and get a quote.”

Cllr Richard Watts, Chair of the Local Government Association’s Resources Board, said:

“Councils are always looking for new and innovative ways to harness their considerable collective purchasing power to help reduce costs and improve services.

“The Local Government Mutual aims to do just that.

"Councils currently spend hundreds of millions of pounds per year on insurance. We believe the Local Government Mutual can save our member councils money and give them the chance to control and manage their risks, claims and cover more effectively.”

Notes to editors

Facts on the Local Government Mutual  

  • The Local Government Mutual is a company owned by its members – its customers.
  • It acts solely for the benefit of its members at all times.
  • The Board is drawn from the membership.
  • Members pay contributions into the mutual fund based upon the risks they bring.
  • Contributions are used to pay the expected (predictable) claims, to purchase insurance which protects the mutual and its members against unexpected claims, and for operating costs.
  • Any mutual trading surplus belongs to the members and must be used for their benefit or as the members may agree.

You can find out more at www.lgmutual.co.uk.