Following the recent publication of Municipal Mutual Insurance (MMI) accounts as of 30 June 20251, this update assesses levy risk, claims trends and future liabilities affecting policyholders.

The accounts indicate a stable position, with no further increase currently anticipated to the total levy rate of 25%. Claims volumes continue their long-term downward trend and outstanding claims have reduced year on year. Investment income has strengthened over recent years, although growth has begun to moderate as market conditions evolve.

However, MMI's liabilities remain long tailed and subject to material uncertainty. Employers' liability and abuse claims continue to dominate provisions, with settlement costs influenced by inflation, legal developments and medical advances. While no immediate levy increase is forecast, future outcomes remain sensitive to these factors.

As a result, authorities should continue to take a prudent approach to reserving and ensure they understand their individual exposure within the scheme.

Key insights from the report

  • An overview of MMI's current financial position
  • Commentary on the June 2025 accounts
  • Claims trends and settlement dynamics
  • Key future risks affecting levy adequacy
  • Gallagher recommendations for managing self-insured liabilities

For a full breakdown, including insight into levy sensitivity and future claims projections, view the full report.

View Report

Sources

1"Annual report and accounts for the year ended 30 June2025," Municipal Mutual Insurance Limited, accessed 12 Feb 2026. PDF file.

Disclaimer

The sole purpose of this bulletin is to provide guidance on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/ or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein.

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