ACC grapples with long-term claims
This raises questions about the sustainability of the scheme. Insurers and reinsurers are complaining that the ACC approach to claims management has created the problem and is having a knock-on effect on income protection (IP) claims.
The impact on the IP market might be two-fold. Advisers have two conflicting thoughts. If you’re worried about the sustainability of ACC, buy IP is more important, but if IP is going to become a lot more expensive, sustainability of that product is in question.
At June 2024, 22,593 clients had been on weekly compensation for more than a year. By March 2025, that number had already grown to 24,769. That’s a 30% rise over just three years. In contrast, New Zealand’s population grew by around 3% over the same period.
This growth is not trivial. Long-term claims typically involve complex injuries and require years of support. The impact is felt not just on the balance sheet but also in extended return-to-work times and heavier burdens on clients, families, and employers.
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