ACC Policy recognises Importance of Competition
27 June 2002
National's ACC Policy recognises Importance of Competition
The rural community will be encouraged by the National Party's policy on ACC, which plans to progressively reintroduce competition into the accident insurance market, says Federated Farmers President Alistair Polson.
"National's policy on ACC recognises that competition is important to ensure that customers receive an innovative and quality service which reflects their individual workplace needs.
"Farmers will be pleased if they are no longer shackled to the whim of a monopoly insurer with "its one size fits all syndrome" and a "take it and eat it" policy on premium increases, but will have choice in their accident insurer.
"Private sector insurers have greater incentives to ensure that premiums reflect the risks associated with a particular workplace while competition ensures that those rates are competitive compared to other insures. Under the current monopoly insurance model it is Government that sets the premium rates, not ACC themselves. This tends to increase the suspicion that rates set may reflect political imperatives.
"The greater use of experience-rating and other mechanisms used by private sector insurers to ensure customers with excellent health and safety records are rewarded through premium rebates is critical to ensure customers are rewarded for good results. Conversely those with poor records should be penalised."