Insurer misses market share

By Richard Braddell

WELLINGTON - @Work Insurance, the Crown entity set up to contest the workers' compensation market, will repay some of its $165 million establishment capital to the Government, after winning less than its budgeted share of the privatised market.

Announcing the state-owned enterprises financial results yesterday, chief executive Sam Knowles said the amount to be returned had not yet been determined as capital requirements to support likely long-term injuries had to be assessed.

The annual report tabled in Parliament yesterday shows a net deficit of $15.1 million for the June 30 year, representing set-up costs.

In addition to competing in its own right, the company was established to underwrite the market by claiming as customers those employers who did not bother to take out insurance with one of the other six registered private insurers. In the end, the so-called residual market delivered @Work less than 3 per cent of the market, or 30,000 to 40,000 employers.

But additional business in the voluntary market, with some major organisations including Fletcher Challenge, Heinz-Wattie, the Rugby Union and IHC, boosted its share of premiums above 10 per cent.

Mr Knowles declined to be more specific, claiming that accurate numbers and premium values could be determined only after the release of a long-awaited report from the market regulator.

Meanwhile, @Work is looking to new products and services to build market share.

An early target is the self-employed, where it claims it can provide rates almost half those offered by ACC for some occupational groups.

Although the 365,000 self-employed had the option of going to private insurers, virtually all chose to remain with ACC.