The Local Government Mutual

The Mutual is owned by, and operated for, the benefit of its members. It does not have shareholders expecting a return on their investment and members have ultimate control over how it is run.

Any surpluses will either be used to reinvest in the Mutual, reduce the costs of risk for all of our members or be returned to members.

Fourteen councils, along with the Local Government Association (LGA), have joined together to establish the new Local Government Mutual (LGM). It is drawing on best practice from other mutuals and aims to offer a cost-effective alternative to traditional insurance. It will use local government capabilities and resources more effectively to manage and, where possible, reduce the cost of risk whilst continuing to work with the insurance market to procure protection against large losses.

The Local Government Mutual is governed and led by its local authority members and is legally obliged to act in their best interests. It will support improved risk management by using tried and tested sector-led improvement methods to help reduce the number and cost of claims, and its local authority members will themselves reap the financial benefits.