We match private insurers says ACC

By RICHARD BRADDELL

WELLINGTON - The Accident Compensation and Rehabilitation Insurance Corporation (ACC) is putting its markers on the workplace insurance market.

It claims it can match or better private-sector premiums if the new Labour-Alliance Government goes ahead with its election pledge to reverse National's privatisation of the market.

In a pitch to Canterbury business groups yesterday, ACC's chief executive, Garry Wilson, said the corporation would be able to charge small and medium businesses less than the private insurers and provide more.

Mr Wilson said independent actuary Trowbridge had found ACC's cost to be $1.05 per $100 of liable earnings, compared with between $1.21 and $1.25 under current arrangements.

Furthermore, ACC's costs were trending downwards rapidly.

"Although ACC prices are set by Government, I am confident that if ACC re-enters the workers' compensation market, it will be able to do so at prices which on average are lower than those currently available," he said.

Mr Wilson also said the insurance industry had been presenting a misleading picture of the savings they were offering because their comparisons were with last year's ACC figures.

"ACC has been effective in reducing its costs at the same time as bringing down accident rates through injury prevention initiatives," he said.

"We have reduced the duration people are spending on the scheme through focused case management and early treatment of injuries."