The class action was filed recently against multinational insurance broker Jardine Lloyd Thompson (JLT) who was acting on behalf of many of the state’s 128 local councils through Statewide Mutual.

Some councils, including Orange, Parkes and Mid-Western, have joined the class action and claim that since leaving JLT they have saved hundreds of thousands of dollars each year in insurance costs.

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Parkes Shire Council saved around $230,000 a year on insurance since leaving JLT while Mid-Western saved around $300,000 on the first year alone.

Cowra Council general manager Paul Devery said council had been a part of Statewide Mutual for some years.

“Council is not intending to join the class action at this time,” he said.

Mr Devery did however confirm that council would look elsewhere when its current insurance policy ended.

“We will be calling tenders to test the market prior to the 2019/2020 financial year,” he said.

Law firm Quinn Emanuel Urquhart and Sullivan (QE) lodged the class action on behalf of all local councils and managing partner Michael Mills said many of them were still with Statewide Mutual.

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“They’ve been overpaying for many years,” he said of the mutual’s member councils.

Mr Mills said it was not uncommon for large corporations and businesses to seek out a broker to secure competitively-priced insurance policies due to the complex nature of the premiums needed.

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He alleges that JLT did not “shop around” for better priced insurance policies for councils and that it may have had a “conflict of interest” in selecting higher cost premiums that led to commissions for JLT.

Bathurst, Cabonne, Dubbo and Hilltops councils confirmed to Fairfax Media that they would not join the class action.

More information is available on the JLT Local Council Class Action website.