If the article is accurate, Orange City Council first received insurance services provided by multinational insurance broker Jardine Lloyd Thompson in 2002 when they put their insurance requirements out to tender.

In the first year there were significant savings of several hundred thousand dollars.

The managing partner of the law firm that has lodged the class action on behalf of local councils is quoted as saying, “JLT did not shop around for better-priced insurance policies".

Surely it is up to council to review their insurance requirements on a regular basis?

Council's insurance requirements would no doubt change from year to year and it is simply a matter of the responsible staff advising the broker of any changes.

The broker can then do his job and come back to council with costings for the cover required.

I would be interested to know how often council has reviewed its insurance requirements in the last 16 years.

It is a very competitive market and there are substantial savings to be had.

Residents have a right to expect that council would manage its finances in the most efficient manner possible.

After reading this article I wonder if this is the case.