Annual report shows progress by ACC

17 October 2012

Annual report shows progress by ACC

The release of ACC’s annual report for the 2011/2012 financial year shows firm progress on addressing privacy concerns, rehabilitation of clients and financial stability of the scheme.

“The biggest challenge for ACC over the latter part of 2011/12 has been the response to the substantive privacy breach reported in March 2012. ACC is committed to rebuilding the public’s trust and confidence by improving the management and security of private information. Part of this will be implementing in full the recommendations for improvement from the independent reviews,” Board Chair, Paula Rebstock says.

Ms Rebstock adds that ACC must show people that change is occurring and a Personal Information Management (Privacy) Index has been developed to measure the reduction in privacy breaches and progress against completing the recommendations from the Independent Review of ACC Privacy and Security of Information.

“The ongoing challenge for the organisation is to manage the cost of running the Scheme as efficiently as possible, without any compromise on client outcomes or long-term financial sustainability.

“Achieving the highest quality treatment and rehabilitation outcomes depends largely on the partnerships we form with clients and their families, with providers and caregivers, with other agencies and with employers. A number of work programmes are currently being put in place and we must remain true to the underlying principles of the Scheme to provide cover and entitlements fairly and in line with legislation,” Ms Rebstock says.

“Notwithstanding the impact of external economic factors on the financial result for the year, the efforts and actions of ACC’s staff in their day-to-day interactions with our clients and key partners have resulted in the delivery of significantly improved rehabilitation outcomes and reduced claims costs. In addition, ACC is still on track to reach full funding in the Work, Earners’ and Motor Vehicle Accounts by 2019 and is in a position to propose a further reduction in levies next year,” Ms Rebstock says.

A strong investment performance saw the Corporation achieve investment returns of 9.5% over the year. Meanwhile, a 1% reduction in New Zealand discount rates increased ACC’s liability by $4.5 billion, offsetting the strong investment results.

The release of ACC’s annual report for the 2011/2012 financial year reports a financial deficit of $474 million. The increase in liability has increased the gap between assets and liabilities.

ACC is the largest investor in New Zealand, with over $20 billion in funds under management. In 2011/2012 ACC’s investment performance continued to exceed market benchmarks. ACC’s consistently strong investment performance means that one dollar invested 20 years ago is worth $6.98 today and these returns offset the ongoing and increasing cost of claims.

Over the 2011/2012 year ACC accepted more than 1.7 million new claims which were managed by 1,761 staff in 31 locations throughout New Zealand. The total claims payments for the year were just over $2.6 billion, or around $7 million per day.

Over 32,000 people had surgery during year, 10,876 knee surgeries and 5,599 shoulder surgeries were approved, 925,000 clients visited their GP and 408,000 clients received physiotherapy. Accidents in the home accounted for 42% of all claims and 66,736 were the result motor vehicle accidents.

ACC Personal Information Management (Privacy) Index

ENDS

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