ACC in for total overhaul

Friday 7th August 2009

Accident Compensation Minister Nick Smith is mandating a root and branch review of all aspects of the national no-fault accident insurer, seeking efficiencies, greater use of risk-rating and a review of what is driving claims.

"The Stocktake is the Government's top priority for the ACC portfolio because it will provide the information on which to base future decisions that improve the efficiency and affordability of the ACC scheme," Smith said.

Membership of the steering committee has yet to be announced. It will have until next June to report on numerous aspects of the scheme's administration and its $10 billion investment fund, including:

The characteristics of each of the ACC's separate claims accounts;
Major risks;
Constraints on achieving value for money and a steady-state financial position;
The potential for introducing experience-rating or risk-sharing to help promote a health and safety culture in workplaces and lower ACC costs through fewer accidents;
Performance monitors for ACC, to be drawn up with the benefit of findings from the Treasury-led review of Crown agencies currently under way;
Review of the investment portfolio and its contribution to scheme sustainability and levy stability.

An interim report is due in February next year.

Businesswire.co.nz

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