Charter for Comcover
Comcover, the Australian Government's general insurance fund for insurable risks, came into operation on 1 July 1998.
Comcover provides a comprehensive and disciplined managed fund. The premiums collected from Fund Members (Australian Commonwealth Entities) enable Comcover to accumulate reserves and meet future losses from those reserves.
Comcover is not in the business of selling insurance policies - it is an internal government mechanism that is modelled on the best managed funds in Australia and overseas.
The Government's objective in establishing Comcover was to ensure better risk management in the Australian Government. Benefits that flow from Comcover's operations include:
- Promotion of improved risk management for the whole of Australian Government and an increased level of understanding of risk and its management among Comcover's Fund Membership.
- Protection of the Australian Government Budget, as well as the budgets of Commonwealth entities in the General Government sector, against insurable losses through providing a comprehensive and cost-effective approach to managing the Government's risk exposures.
- Reduction in the Australian Government's long-term cost of risk, resulting in longer-term budgetary savings flowing from improved risk management and the pooling of risks and costs through the Fund.
- Availability of professional assistance and advice to Fund Members in identifying assets and risk exposures, and developing strategies to manage risk better by reducing risk exposure to the greatest extent possible and minimising the consequences of those risks.
- Promotion of the Australian Government's public service reform agenda through improved accountability and transparency to the Parliament and the public in managing the Government's insurable risks.
To achieve its objectives, Comcover provides various services and assistance to Fund Members to identify and quantify their insurable risks:
- Comcover provides advice and assistance to Fund Members on the effective management of their insurable risk exposures.
- Comcover provides positive incentives for managers to manage and deal with their risk exposures comprehensively and effectively.
- Comcover adopts a business-like approach to the Government's insurance and risk management arrangements by providing services at competitive market rates through outsourced service providers.
- Comcover operates with administrative systems and processes that:
- Allow for the systematic identification, quantification and reporting of risk across the Australian Government.
- Facilitate regular, relevant and comprehensive financial and performance management reporting to the Comcover Advisory Council.
- Provide claims management services and monitor the risk management strategies of Fund Members.
- Enable the Australian Government to centrally accumulate risk knowledge and expertise.
- Enable better coordination and, where appropriate, a uniform approach to managing claims against the Commonwealth (Australian Government).
Last updated: 09 July 2014