Corporate Listings Bankers Australia and New Zealand Banking Group Ltd Commonwealth Bank of Australia Treasury Corporation of Victoria UBS Global Asset Management (Australia) Ltd Auditor PKF Solicitors Freehills Maddocks Middleton Lawyers Secombs Solicitors Actuary Cumpston Sarjeant Pty Ltd Scheme and Fund Manager Jardine Lloyd Thompson Pty Ltd Legal Panel CMP Scheme The firms on the Legal Panel are experienced in defending public liability and professional indemnity claims brought against councils. firms are allocated to specific Victorian rural zones. This system enables cooperative relationships to be developed between the panel firm and its allocated councils, CONTENTS and between individual members of the legal firm and council. It has also enabled firms to compile archives Welcome 2 of council documentation on methods and procedures. Year In Review 4 Herbert Geer & Rundle Chair’s Report 6 Hunt & Hunt MAV Insurance Committee CMP Scheme 8 10 Ligeti Partners Phillips Fox Wisewoulds Risk Management 18 Municipal Officers’ Fidelity Guarantee Fund 20 Zones and allocated panel firms Hunt & Hunt – North Central Rural Australian Financial Services Licence Australian Prudential Regulation Authority 23 24 Ligeti Partners – Geelong/Ballarat Phillips Fox – South West Rural Wisewoulds – Eastern Rural Herbert Geer & Rundle – Professional indemnity claims Fidelity Members 26 Loss Adjusting CMP Scheme CMP Members 27 ANPA Investigation Services Financial Report 28 Echelon Loss Adjusting G Hughes & Associates
In addition, the independence provided will ensure that members of both Civic Mutual Plus and the Municipal Officers Fidelity Guarantee Fund receive the best possible service with access to the most thanks to the members of the CMP and Municipal Officers’ Fidelity Guarentee Fund for support, and look forward to another challenging and rewarding year ahead. competitive premiums. ROB SPENCE CEO & GEOFF LAKE PRESIDENT MAV INSURANCE ANNUAL REPORT 2004/5 3
CR ROD FYFFE ALLAN GARCIA CR DICK GROSS DR MICHAEL KENNEDY Appointed 2004 Appointed 30 July 2003 Appointed 2005 Appointed 1995 Current and past positions held Current and past positions held Current and past positions held Current and past positions held MAV Representative Rural North CEO Local Government Association of MAV Board Representative Metro Inner Region CEO Mornington Peninsula Shire Council Central Region Tasmania (LGAT) Councillor City of Port Phillip 1996 to Former CEO Boroondara City Council Councillor Greater Bendigo City Council 1996-current Mayor Greater Bendigo City Council 2003 to current LGAT Representative current Mayor City of Port Phillip 1998-2000 Former CEO Shire of Hastings Former Director/General Manager Coastal Expressline Former Executive General Manager International ANL Limited Ex-officio members ROB SPENCE JOHN WARBURTON JIM BULLING BOB FALZON ALLAN HOLMES GRAEME LEMMER Appointed 1998 Current and past positions held Appointed 1995 Current and past positions held Current and past positions held Current and past positions held Current and past positions held Current and past positions held CEO Municipal Association of Victoria Director Vision Super (formerly Local Authorities Super) CEO Brimbank City Council 1994-97 CEO City of Footscray 1992-94 Chairman Good Governance Advisory Director Vision Super (formerly Local Authorities Super) Director Select Limited Partner Middletons Lawyers MAV Legal Adviser Jardine Lloyd Thompson General Manager Risk Services Managing Director AAR Capital Pty Ltd MAV Financial and Insurance Consultant and Contract Manager CMP Scheme Manager Jardine Lloyd Thompson Former Director Municipal Operations Office of Local Government Trustee Melbourne Exhibition and Convention Centre Trust Chairman Port of Hastings Corporation Deputy Chair Victorian Managed
$6,212,145 (294 Claims) $7,515,250 (344 Claims) 2003/04 Paid $93,951 $1,522,926 12 mths O/S $1,707,690 $3,911,187 $1,801,641 (80 Claims) $5,434,113 (142 Claims) 2004/05 Paid $235,193 12 mths O/S $2,390,652 $2,625,845 (92 Claims) Incurred claims Number of claims ROADS & FOOTPATHS PROFESSIONAL INDEMNITY NATURAL OTHER PERSON CONSTRUCTION ENVIRONMENTAL LEISURE BUILDING PAID PLUS O/S TOTALLING $48,085,949 $28,917,686 $900,441 $11,768,764 $3,319,495 $1,550,225 $7,374,328 $12,945,081 $4,698,167 $90,077,834 $29,482,301 $119,560,136 ROADS & FOOTPATHS PROFESSIONAL INDEMNITY NATURAL OTHER PERSON CONSTRUCTION ENVIRONMENTAL LEISURE BUILDING TOTAL MAV INSURANCE ANNUAL REPORT 2004/5 4068 902 80 535 144 251 822 717 334 7853 13
risk management YOU COULD SAY WE’RE NEVER SATISFIED Continual improvement is the acknowledged keystone of MAV Insurance’s risk management strategy. With this year’s directed at refining the audit process even further, the Association consulted its membership and came up with a streamlined process that won widespread endorsement. So you could also say that some things just keep getting better. 18 MAV INSURANCE ANNUAL REPORT 2004/5
glossary AFSL – Australian Financial Services Licence ALGA – Australian Local Government Association APRA – Australian Prudential Regulation Authority ASIC – Australian Securities and Investment Commission CMP – Civic Mutual Plus EPA – Environmental Protection Authority JLT – Jardine Lloyd Thompon LGAT – Government Association of Tasmania MAV – Municipal Association of Victoria MAVIC – Municipal Association of Victoria Insurance Committee TAC – Traffic Accident Commission Published by Municipal Association of Victoria Level 12, 60 Collins Street Melbourne 3000 Telephone: 03 9667 5555 Facsimile: 03 9667 5550 GPO Box 4326 Melbourne 3001 E-mail: inquiries@mav.asn.au Website: www.mav.asn.au Writers Costigan & Murphy Photography Steven Diffey Photography Design Frank Design Pty Ltd
(b) The following average inflation rates and discount rates were used in measuring the liability for outstanding claims. Inflation factor Discount rate 1(h) 6.0% 5.2% 6.0% 5.5% 36 MAV INSURANCE FINANCIAL REPORT 2004/5