Bayly highlighted the importance of the ACC in providing no-fault accident compensation to New Zealanders but acknowledged the scheme faces significant challenges.
“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,” Bayly said.
“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.”
He warned that without intervention, the scheme’s viability could be at risk, potentially burdening future generations with significant costs. To address these concerns, the government has initiated two independent reviews to assess ACC’s operational efficiency and financial sustainability.
The first review will focus on ACC’s operational performance, particularly in case management, and will be conducted by actuarial firm Finity, which has expertise in accident compensation and private insurance schemes.
The second review will examine ACC’s investment strategy, overseeing its nearly $50 billion investment portfolio. Investment consulting firm Willis Towers Watson, known for its global asset management experience, will lead this review.
“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,” Bayly said.
He emphasised his expectation for the reviews to deliver actionable recommendations and reaffirmed his commitment to holding ACC accountable to its primary mission: preventing injuries and ensuring timely rehabilitation for New Zealanders.
Progress reports on both reviews are expected in April, with final reports due in June.
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