One of the reasons ACC wants to increase its levies is that some of its investments went bad. In addition, we are still playing catch up for the fact that the scheme was not fully funded prior to July 1999. Fair enough perhaps, but these are both scheme-wide factors, so we’d expect them to flow through to the individual accounts in a reasonably even-handed way. Not so, it seems. Here are my calculations based on a review of the (separate) documents ACC issued for each of the three big accounts: employers, employees, and motorists. They break the increases down into 3 categories: cost of claims; cost of running ACC and “funding adjustment” which covers income losses and the pre-1999 catchup.
This shows that the vast majority of the increases are to cover income losses and pre-1999 catchup. Scheme cost increases are pretty modest, as is the cost of claims. It also suggests that motorists have copped significantly bigger increases for these scheme-wide factors than the other groups.