Accident Compensation Corporation - Statement of Corporate Intent ...

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section 4: Operating intentions This section contains details of ACC’s three outcomes. It includes further explanations of why they are priorities for ACC, the work that will be undertaken to achieve them, and the measures that will be used to track success towards their achievement. In 2010-2011, ACC will focus on the delivery of an actuarial release and on the leadership of the New Zealand Injury Prevention Strategy (NZIPS). ACC will use the actuarial release as the high-level measure of its success in controlling the costs of the Scheme. Leadership of the NZIPS will support the Government’s expectations of greater coordination within the injury prevention sector. Actuarial release To demonstrate how it is progressing towards financial sustainability, ACC has set itself the three-year target of realising a $2 billion actuarial release by 30 June 2012. The concept of actuarial release allows ACC to measure how operational performance affects the liability. The calculation of the actuarial release isolates the impact of internal operational performance improvements and removes the impact of external factors such as changes in economic conditions, legislation and other factors beyond the control of management. The measure therefore provides a link showing how current performance in managing claims and associated expenditure affects the liability and the long-term financial sustainability of the Scheme. The baseline for the release is the independent valuation of ACC’s outstanding claims liability as at 30 June 2009. This valuation includes a forecast of ACC’s future costs and outstanding claims liability based on assumptions about ACC’s operating environment and performance. The release is calculated using: • the difference between a current and previous estimate of the outstanding claims liability, and • any cash cost savings realised during the period compared with original expectations. Alignment of impact measures to actuarial release For those performance measures that contribute to the actuarial release, ACC has set its 2010- 2011 targets to achieve the actuarial release target of $2 billion by 30 June 2012. Approximately three-quarters of the actuarial release will come from a reduction in the value of the outstanding claims liability. The key levers affecting this part of the actuarial release are the number of clients receiving weekly compensation for more than a year, and the lifetime cost of providing social rehabilitation entitlements to seriously injured clients. These levers are targeted through specific initiatives measuring reductions in the number of long-term claims and the average cost of social rehabilitation for seriously injured clients. 16
The remaining quarter of the release will come from savings in claims costs compared with those originally forecast in the valuation of the liability. ACC has therefore set impact measures in line with achieving the actuarial release. These targets are detailed under Outcome 2: Rehabilitate injured people in New Zealand more efficiently. Table 6 provides a list of the initiatives that support the delivery of an actuarial release with a brief summary of how their delivery of benefits aligns to the way an actuarial release is calculated. Table 6: Key initiatives that contribute to an actuarial release Initiative National serious injury service Improving return-to-work performance Preventing re-injury Which measures it supports and how By improving the management of serious injury clients, this initiative will contribute to the total cash claim costs measure and support the actuarial release target by reducing future liability estimates The impact of this initiative will be seen in ACC’s return-to-work rates. This will also impact on the total cash claim costs measure and provide a cash saving that will contribute to the actuarial release This initiative will have an impact on the number of new entitlement claims. The reduction in claims will deliver a cash saving that will contribute to the actuarial release More detail can be found on page 25 27 30 Leading the New Zealand Injury Prevention Strategy ACC’s role in injury prevention continues to evolve and in 2010-2011 there will be a broader focus on improving the effectiveness of government-wide injury prevention activities. This reflects the Minister’s expectation that ACC will take a leadership role in injury prevention and takes advantage of ACC’s ability to influence injury prevention in New Zealand. ACC houses the secretariat of the New Zealand Injury Prevention Strategy (NZIPS). This strategy provides a framework for government agencies and non-government agencies involved in injury prevention in New Zealand. At a national level, the success of the NZIPS is measured against reductions in the national injury rate. ACC’s actual expenditure on injury prevention activities represents a small proportion of New Zealand’s total investment in injury prevention. Consequently, it has a limited ability to directly influence the national injury rate. 17
Page 1: Statement of Intent 2010-2013 Our r
Page 4 and 5: Foreword from the Board Chair The l
Page 6 and 7: ACC’s strategic direction Overarc
Page 8 and 9: Guide to this document This documen
Page 10 and 11: • Rehabilitation: specific provis
Page 12 and 13: section 2: Funding This section des
Page 14 and 15: ACC managed $11.1 billion in invest
Page 16 and 17: The claims management and health pu
Page 20 and 21: National injury prevention targets
Page 22 and 23: Impact measures The impact measures
Page 24 and 25: Outcome 2: Rehabilitate injured peo
Page 26 and 27: Key initiatives to support Outcome
Page 28 and 29: Exploration of alternative service
Page 30 and 31: Outcome 3: Reduce the incidence and
Page 32 and 33: Key initiatives to support Outcome
Page 34 and 35: Key initiatives to improve organisa
Page 36 and 37: Health purchasing contract manageme
Page 38 and 39: section 6: Collaboration and respon
Page 40 and 41: Reporting requirements Consultation
Page 42 and 43: ACC subsidiaries The following two
Page 44 and 45: Output class 1: Levy collection and
Page 46 and 47: How effective is levy collection an
Page 48 and 49: What is the scale of investment man
Page 50 and 51: The following table provides a summ
Page 52 and 53: Output class 4: Injury prevention W
Page 54 and 55: How efficient is injury prevention?
Page 56 and 57: section 8: Forecast financial infor
Page 58 and 59: • Earners’ Account - a $277 mil
Page 60 and 61: • independence allowances are bud
Page 62 and 63: Investment income Future investment
Page 64 and 65: Forecast financial statements Paren
Page 66 and 67: Balance sheet As at 30 June 2011 to
Page 68 and 69:
Summary of significant accounting p
Page 70 and 71:
Non-Earners’ Account The Non-Earn
Page 72 and 73:
Deferred tax is accounted for using
Page 74 and 75:
Revaluations Fair value is determin
Page 76 and 77:
w) Unexpired risk liability At each
Page 80:
www.acc.co.nz 0800 101 996 This pap
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