ACC Preparing For New MarketAccident Insurance
ACC Minister Murray McCully and ACC Chairman David Caygill today announced that the Accident Rehabilitation and Compensation Insurance Corporation is proposing to form four new subsidiary companies in readiness for the new market opening on 1 July.
The new Accident Insurance Act 1998 that comes into force on 1 July 1999 allows private insurers to compete for the accident insurance business of employers and self-employed people.
Mr McCully and Mr Caygill said the new companies would provide claims management services, health contracting services, injury prevention and risk management services and claims review services.
'The subsidiary companies will operate at arms length from the parent ACC Board and will provide many of the customer services currently offered by local ACC offices. They will serve ACC's customers and also be able to contract with private insurers entering the workplace accident insurance market,' Mr McCully and Mr Caygill said.
'Establishment Boards are currently being appointed to oversee the setting up of the new companies and we are fortunate to be able to use capable people with experience of ACC to help steer those new companies,' Mr McCully and Mr Caygill said. 'As part of that process some people will retire from the ARCI Corporation board and join the establishment boards, and replacement Corporation board members will be appointed.
'Ms Lee Mathias is to retire from the Corporation board and take on the post of chairing the establishment board of the health contracting subsidiary company.
'Dr David Bratt is also to retire from the Corporation board and join the establishment board of the new claims management subsidiary company, while Richard Bentley, the Chief Executive Officer of the Natural Gas Corporation, will Chair that company.
"Mr Trevor Janes, an investment banker from Auckland, and Mr Steve Marshall, CEO of the Employers Federation, will join the ACC parent board.
'Doug Brown and John Slater complete their second term as ACC Board members at the end of March. Both have been asked to make their experience available within the new subsidiary framework and these arrangements will be finalised soon.
'Ms Mathias, Dr Bratt and Mr Bentley all have a wealth of experience and a practical approach that will serve the new subsidiaries well, as ARCI Corporation prepares to play a positive supporting role in the new workplace accident insurance environment," Mr Caygill and Mr McCully said.