Navigating LGR: what councils are learning in real time

To uncover the realities behind LGR, we spoke to three local authorities’ customers who shared their journeys so far, highlighting the lessons, challenges, and insights that can help other councils navigating the same path.

From these conversations, here are nine key takeaways local authorities should consider when going through LGR:

1. Start early (earlier than you think)

One message came through clearly from our conversations: start early.

What begins as a defined project quickly becomes something much bigger. Many councils found LGR effectively created a “second job,” running alongside day-to-day responsibilities.

Starting early gives councils the time needed to gather complex data, engage stakeholders, and prepare for procurement. Those that didn’t felt the impact later, through delays, gaps in data, and increased pressure as deadlines approached.

2. Get the right people around the table

LGR success is driven by people.

Our customers told us that one of the biggest early challenges was simply identifying who needed to be involved. Roles varied significantly across councils, and without early engagement, progress quickly slowed.

The councils that got ahead built the right team early, shared responsibility, and kept stakeholders involved throughout. Those that didn’t faced delays, inconsistencies, and gaps in knowledge.

3. Treat LGR as a fresh start

A clear theme emerged: LGR works best when treated as a new organisation, not a continuation of the old.

Councils that carried forward legacy arrangements often ended up with cover that no longer fit their needs.

Those that stepped back, reassessed, and built their programme from first principles were far better aligned to the scale and risk of the new authority.

4. Get on top of data early

Data is where complexity quickly builds.

Our customers described working with multiple systems, inconsistent formats, and varying data quality, particularly across claims and asset information. In some cases, this even delayed procurement.

Standardisation is key. Councils that agreed templates early and created a single, consistent dataset were far better prepared and more attractive to insurers.

5. Tackle claims and liabilities head-on

Claims and legacy liabilities are more complex than they first appear.

Pulling together claims histories, understanding shared liabilities, and managing deductibles all took significant time. Many councils also faced the added challenge of agreeing who was responsible for future claims.

Our customers were clear: early actuarial insight and financial planning make a significant difference here.

6. Start with the broker

Procurement can be underestimated, but it shouldn’t be.

Our customers consistently pointed to the importance of appointing a broker early. Brokers play a central role in shaping the programme and engaging the market.

Starting early also helps councils manage existing contracts and avoid last-minute complications.

7. Build in flexibility

LGR is not a one-off event - it’s the start of something new.

Our customers highlighted that initial programmes won’t be perfect. As data improves and organisations evolve, so too should the insurance programme.

The most successful councils built flexibility into their approach and worked with partners who could adapt over time.

8. Protect knowledge before it’s lost

Knowledge risk is easy to overlook, but it’s critical.

During LGR, staff movement is common. Our customers saw expertise leave the organisation at key moments, creating gaps that were hard to fill.

Capturing historical information early and documenting decisions helped mitigate this risk and maintain continuity.

9. Plan for scale, not quick wins

Finally, our customers were honest about the scale of the challenge.

LGR takes more time, more resource, and more investment than expected. Immediate savings are rare. Instead, councils should plan for a period of transition as the new organisation beds in.

Setting realistic expectations early helps maintain momentum and supports delivery teams.

Conclusion

Our customers’ experiences make one thing clear: while LGR is complex, it’s also predictable in where challenges arise.

Councils that start early, bring the right people together, prioritise data, and treat LGR as a genuine reset are far better positioned to succeed.

These insights offer a simple but powerful takeaway: the more proactive and structured the approach, the smoother the journey.

How we can help

Local Government Reorganisation is bringing significant change. Our focus is to support councils through contract transitions, align risk approaches, and help shape insurance arrangements that meet the needs of new unitary authorities.

• For support and insights, visit our LGR hub

Drawing on our experience working closely with local authorities, the hub brings together practical guidance, insights, and resources to help councils and stakeholders understand what is changing, why it matters, and what it means in practice.

If you would like to discuss next steps or need support at any stage, please contact your account manager or email LGR@uk.zurich.co.uk.