Strong performance positions ACC well for the future

Strong performance positions ACC well for the future

ACC achieved a strong financial performance in 2013/14 as it began a three-year programme to improve customer service and increase public trust and confidence, said ACC Board Chair, Paula Rebstock.

ACC’s annual report, released today, shows a net surplus of $2.1 billion – $298 million ahead of budget – largely due to stronger earnings on international markets.

“The surplus helped reduce the gap between the scheme’s financial assets and claims liabilities to just $108 million,” said Ms Rebstock.

“This means the scheme is now essentially fully funded, enabling significant levy cuts in 2015. New Zealanders can be confident in the financial sustainability of the scheme.”

In 2013/14 ACC accepted 1.8 million new claims, up 4.7% on the previous year. This put pressure on the corporation’s ability to maintain previous high levels of rehabilitation performance.

“Improved economic conditions are a likely factor behind the increased claims with more people in work and more disposable income for sport and recreation,” said Ms Rebstock.

“ACC is hiring extra case managers and taking other steps to ensure it’s well positioned to address rising claims volumes, without compromising its ability to return people to work and independence.”

Ms Rebstock said 2013/14 saw the start of a significant programme to improve the way ACC cares for injured people and delivers services.

“Our customers, including injured people, levy payers and treatment providers, have told us they want ACC to be more responsive, more transparent and easier to deal with. As a result, we are improving staff capability, processes and technology to make ACC more efficient and effective,” said Ms Rebstock.

Good progress was made in reducing the number of privacy breaches. The rolling three-month average fell from 68 in 2012 to 19 in June 2014, reflecting the significant effort ACC has put into protecting client information.

ACC also signalled its commitment to reducing injuries, by adopting a new injury prevention investment model this year.

“We need to get smarter at how we invest levy payers’ money to prevent injuries from happening in the first place, which is a key role for ACC.

“The new investment model will enable ACC to better identify key risk areas, and devise effective, timely interventions that deliver value for money and reduce future claims,” said Ms Rebstock.

The Annual Report is available at: http://www.acc.co.nz/ANNUAL_REPORT_2014

ACC’s 2014 Annual Report by numbers
Finance and Investments
• ACC’s current financial assets and investments = $27,588 million
• Outstanding claims liability = $27,696 million
• Current deficit (gap between assets and liabilities) = $108 million
• ACC’s net yearly surplus = $2.1 billion ($298 million above budget)
• Total levies = $4.7 billion
• Income from investments = $1.6 billion
• Return on investments = 6.33%
• Investment income $344 million above budget
• Investment returns exceeded market benchmark for 19th consecutive year
• ACC spent $2.96 billion on claims

Claims management and rehabilitation
• 1.8 million new claims accepted (up 4.7% on 2012/13)
• Cover decision timeliness = 1.2 days (1.3 days in 2012/13)
• 67.8% of clients returned to work within 10 weeks (70.3% in 2012/13)
• 93.3% of clients returned to work within nine months (93.9 % in 2012/13)
• ACC helped pay for more than 954,000 people to visit their GP (933,000 in 2012/13)
• More than 35,000 people received ACC-funded surgery (around 33,000 in 2012/13)
• More than 445,000 people received ACC funded physiotherapy (around 425,000 in 2012/13)
• In 2013/14 there were more than 59,000 new weekly compensation claims commenced (up from 55,000 in 2012/13)
• More than 32,000 people received vocational rehabilitation services (around 27,000 in 2012/13)
• More than 91,000 people received rehabilitation services, including more than 4,400 serious injury clients (around 85,000 in 2012/13, including around 4,300 serious injury clients)
• Total number of long-term claims pool = 10,763 (10,399 in 2012/13)
• Number of long-term clients returned to independence = 2,272 (2,470 in 2012/13)
• Number of reviews of decision lodged = 6,057
• Formal reviews as a percentage of entitlement claims = 3.3% (4.3% in 2012/13)
• Percentage of ACC reviews upheld 84.5% (81.3% in 2012/13)
• Average time to resolution for reviews = 91 days (87 days in 2013)

Privacy
• Rolling three month average number of privacy breaches = 19 (down from 68 per month 2012, and 36 per month 2013)
• 37 of 44 recommendations made in independent 2012 Privacy Report now implemented

Customer satisfaction/trust and confidence
• Public trust and confidence = 54% (up from 47% in 2012/13)
• Customer satisfaction (clients) = 75% (up from 68% in 2012/13)
• Customer satisfaction (levy payers) = 59% (new measure)

ENDS

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