Govt Initiates Dual Reviews to Strengthen ACC’s Performance and Financial Sustainability

“ACC plays a vital role in supporting injured Kiwis. It’s the only no-fault accident compensation scheme of its kind globally, and we should be proud of it,” said Minister Bayly.

ACC Minister Andrew Bayly has announced two comprehensive, independent reviews aimed at enhancing the Accident Compensation Corporation's (ACC) performance and ensuring its long-term sustainability for New Zealanders.

"ACC plays a vital role in supporting injured Kiwis. It's the only no-fault accident compensation scheme of its kind globally, and we should be proud of it," said Minister Bayly. "However, ACC is facing significant challenges that threaten its efficiency and future viability."

Over the past decade, ACC has seen a steady decline in performance. Operational costs have surged, and levies have struggled to keep pace. Simultaneously, rehabilitation rates have dropped, delaying many New Zealanders' return to independence after injuries.

"If these trends continue unchecked, the scheme's viability could be at serious risk, potentially burdening future generations with unsustainable costs. We need a robust strategy to improve ACC's financial sustainability without resorting to substantial levy increases," Bayly emphasized.

Details of the Independent Reviews:

1. Operational Performance Review

   • Focus: Case management processes and overall operational efficiency.
   • Lead: Actuarial firm Finity, renowned for their expertise in accident compensation and private insurance schemes.

2. Investment Strategy Review

   • Focus: Evaluation of how ACC manages its nearly $50 billion investment portfolio.
   • Lead: Investment consulting firm Willis Towers Watson, recognized for their global asset management proficiency.

"This will mark the first external assurance review of ACC's investment function. Ensuring that we achieve optimal returns from this significant fund is essential for supporting ACC's long-term sustainability," Bayly stated.

The Minister has personally met with both review teams, emphasizing his expectations for actionable, practical recommendations that will drive tangible improvements in ACC's performance.

"I will hold ACC accountable to its core mission: preventing injuries and helping Kiwis regain their independence as swiftly as possible after an accident," he concluded.

The outcomes of these reviews will be instrumental in shaping ACC's future strategy, ensuring that it continues to deliver exceptional support to injured New Zealanders while maintaining financial resilience.