By RICHARD BRADDELL
WELLINGTON - @Work Insurance, the crown company set up to contest the privatised workers' compensation market, will be disbanded.
The company made a strong pitch to the incoming Government for a role in the re-nationalised market. But a Government spokesperson said ACC would run the workplace insurance programme once
its monopoly was restored this year.
The 45 staff of @Work, formed last year under the previous Government's privatisation of the market, might find jobs with ACC, the spokesperson said.
Last week, ACC chief executive Garry Wilson said the corporation would be able to cope with the increased workload by adding 20 or 30 staff.
@Work's briefing paper to the incoming Government, released to the Business Herald under the Official Information Act, provides a glowing picture of @Work's capacity.
In what reads like a pitch for a role in the new regime, the company says it can manage up to 200,000 policyholders with its core policy administration, financial and quoting systems set up on time and within budget.
Its injury management scheme was tailored to reduce the incidence of workplace injuries and to provide for early rehabilitation.
Key financial information, including details of compensation and budgets, had been deleted from the paper.
But it has been suggested that the company may be running at a profit, against a budgeted loss of up to $5 million, and that claims costs may be half those budgeted for.
In a discussion of market reform scenarios, the briefing paper says that if @Work's current position was confirmed, the company would be able to provide a return to the Crown within three years.
"In these circumstances @Work will continue to provide a benchmark and backstop to the private insurance providers," the paper says.
Under the single public fund model, options included appointing the company as the primary writer of workers' compensation business, either directly or under ACC.
The paper says @Work was well-placed to become the Government's primary underwriter due to its organisational flexibility and ability to support reform.
