National on ACC

Jordan condemns National’s policy to reintroduce competition into the provision of accident compensation insurance as “destroying the ACC system”.

I’ve never worked out how one form of insurance (accident compensation) is so different from medical insurance, car insurance, contents insurance etc etc.

Jordan claims:

“The reason ACC works is because it shares the cost of risk across the whole of society. If one allows private firms to cherry pick low risk claimants, one ends up with a residual, expensive public scheme that can’t afford decent provision for those who need it most.”

This shows a total lack of comprehension over how providing choice of provider works. Firms can not pick individual claimants. Individual employers (not claimants) are simply able to get quotes from companies other than ACC for their accident insurance provisions. Such policies must be for the same level of cover as ACC currently providers.