ACC Minister, Andrew Bayly, has today announced the Government will commission two independent reviews to boost ACC’s performance and ensure it delivers for New Zealanders.
“ACC provides crucial support to injured Kiwis. It is the only no-fault accident compensation scheme like it in the world, and Kiwis should feel immensely proud of it,” Mr Bayly says.
“But ACC faces challenges on multiple fronts and action is required to ensure its sustainability and longevity. Over the last 10 years, ACC’s performance has steadily decreased. Costs are up, with levies struggling to keep up. Meanwhile, rehabilitation rates are down, slowing down people’s return to independence following an accident.
“Clearly if this trend is left unabated, the viability of the scheme is at risk, saddling future generations with immense costs. A robust plan is required to improve ACC’s long-term financial sustainability without having to make large increases to levies.”
The Government has commissioned two independent reviews to assess ACC’s performance and effectiveness:
- A review of ACC’s operational performance, with a focus on case management. This is being led by actuarial firm Finity, who have significant experience with both accident compensation and private insurance schemes.
- A review of ACC’s investment strategy and how it manages the nearly $50 billion it invests. This is being led by investment consulting firm Willis Towers Watson, who have considerable global asset management experience.
“This will be the first external assurance review of ACC’s investment function. Reviewing ACC’s investment performance now ensures we are getting the best returns from the fund and that it can support ACC’s sustainability,” the Minister said.
“I have met with both review teams and have been clear about my expectation that they deliver actionable recommendations to improve ACC’s performance.
“I will be holding ACC accountable to its fundamental purpose, which is to prevent injuries and get Kiwis back to independence as quickly as possible after an accident,” he said.
Progress reports on both reviews are expected by April, with final reports expected to be delivered by June.
