ACC Costs Surge 125% In A Decade To $8.23 Billion While Claims Rise Just 6% – Inflation & Aging Population Drive The Gap

New Zealand's ACC scheme paid out $8.23 billion in the year to June 2025 – up 125% from $3.66 billion a decade ago – despite claim numbers rising just 6.3% over the same period, according to new analysis by personal finance research website MoneyHub. The average cost per claim has more than doubled from $1,695 to $3,585, driven by inflation in medical treatment costs, higher wage replacement payments, and an aging population that takes longer to recover.

"This isn't a story about more accidents – it's about more expensive accidents," said Christopher Walsh, Founder of MoneyHub. "Medical costs have surged, the 80% wage replacement ACC pays is now based on higher salaries, and older New Zealanders take longer to heal. A broken hip at 75 costs vastly more than the same injury at 25."

Key findings from the analysis include:

• Total claims (2024/25): 2,295,685 – that's 43 claims for every 100 New Zealanders
• Total cost: $8.23 billion (+11.5% on last year)
• Cost per claim: $3,585 – more than double 2015's $1,695
• Claims for over-70s: Up 57% in a decade, while under-30s claims fell 11%
• Home accidents: 48.7% of all claims – nearly half of injuries happen at home
• Road accidents: Just 5.9% of claims but $8,210 per claim (3.5x home injury costs)
• Work claims: Down 11.6% since 2015, suggesting workplaces are getting safer
• Highest-risk region: Otago (55 claims per 100 people) – driven by Queenstown adventure tourism
• Lowest-risk region: Wellington (33.9 per 100)

Inflation Is The Hidden Driver

The 125% cost increase against just 6% more claims reflects two inflation factors: medical treatment costs (surgery, physio, rehabilitation) have risen sharply, and ACC's wage replacement – paying 80% of earnings while injured workers recover – is now calculated on higher salaries. With the median NZ salary rising 53% over the decade, weekly compensation payments have grown accordingly.

The Aging Effect

Claims for 70-79 year olds have grown 57.4% in ten years – far outpacing population growth. Older bodies heal slower, require more treatment, and need longer rehabilitation. As New Zealand's population ages, this trend will intensify.

What ACC Doesn't Cover

Walsh noted an important gap: "ACC covers accidents, but if you can't work due to illness – cancer, heart disease, mental health – ACC pays nothing. Income protection insurance exists for this reason, and most New Zealanders don't realise how affordable it can be."

The full analysis, including regional breakdowns, injury causes, industry data, and 10-year trends, is available in MoneyHub's guide: ACC Claims Statistics NZ

Data Source: ACC official data publications (July 2025 release) covering the financial year 1 July 2024 to 30 June 2025. Population data from Stats NZ 2023 estimates.

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