The Municipal Association of Victoria (MAV) was recently criticised by the Victorian Auditor-General for not running an open-tender for their insurances services, provided by JLT for two decades.
MAV ignored this criticism, preferring to continue their relationship with JLT based on “absolutely sensible commercial grounds.”
While tendering is generally considered a fair and transparent way to test the market, it isn’t the only way. We value our relationships, not only with our members but the raft re-insurers that have been involved in our program long term. They know council’s business and have stuck with the scheme through thick and thin. The scheme’s insurances have evolved over 20 years to obtain the broadest covers and market leading limits.
Using the collective bargaining power of our membership, we continue to obtain competitive and sustainable support from reinsurers to continue to provide our members with the optimal outcomes. Through the mutual, councils have gone from being near uninsurable to part of enviable program in which participation is coveted within the insurance market.
Our members also benefit from our longstanding relationships with other service providers. Many have had the opportunity to attend mock trials in their regions with Michael and Nikki of Mills Oakley.
We’ll continue to do much the same.