New Zealand’s state accident insurer recorded a net reduction in its long-term claims pool (LTCP) in April, bringing the pool’s monthly growth rate to 0% for the first time since the corporation launched a formal recovery programme in January. According to ACC’s April monthly turnaround plan report, the long-term claims pool – which counts clients who have been on weekly income compensation for more than 12 months – shed 131 claims over the month, ending April at 24,715. The corporation also recorded broad improvements in return-to-work rates during the same period.
The April figures come as ACC faces structural cost pressures that have built over the past decade. ACC’s own turnaround plan documents show that the proportion of weekly compensation recipients still receiving payments one year after injury has nearly doubled, moving from roughly 5% a decade ago to roughly 9% today. Over the same period, the number of clients in the long-term pool has grown from approximately 12,300 to approximately 24,500.
Annual expenditure on rehabilitation and treatment has climbed from $2.1 billion to $4.4 billion – a rate of growth that outpaces both inflation and population change. ACC puts its total future liability at approximately $63.6 billion, against reserves of approximately $53.8 billion. If the trajectory of recent years continues, the corporation projects a funding shortfall of $26.3 billion by 2030. The Accident Compensation Scheme operates on a full-funding model, meaning it is expected to hold assets today sufficient to cover all anticipated future costs, including lifetime support for clients with severe injuries. ACC has operated as a no-fault social insurer for more than 50 years, replacing the right to sue for personal injury.
ACC’s turnaround plan was published in January 2026. It was developed in response to an independent review of the corporation’s claims management and rehabilitation practices, an updated letter of expectation issued by ACC Minister Scott Simpson, a board-commissioned review of organisational culture, and a Treasury-commissioned review of ACC’s investment function. The plan groups its objectives into three areas. The first centres on client care leading to durable recovery, including consistent decision-making on social rehabilitation, improved elective surgery outcomes, and tighter fraud detection.
The second focuses on returning people to work and financial independence, covering frontline workforce capacity, early identification of clients at risk of delayed recovery, coordination with health providers, and support for clients who are no longer eligible for weekly compensation. The third covers organisational reset – adjusting the operating model, resetting strategic direction, lifting culture, and ensuring operating costs represent value for levy and tax payers.
ACC chief executive Megan Main said the April data reflected the effect of the corporation directing its attention toward areas within its own control. “We are focused on improving the things that are in our control and shifting the way people think about their recovery if they get injured. But there is more to do, and everyone has a part to play,” Main said. She also pointed to the role of primary care providers and employers in rehabilitation outcomes, saying ACC was actively working to deepen those partnerships.
ACC used the April report to document a return-to-work case involving Bill Broadley, a truck driver at Auckland waste management company Rubbish Direct, who was seriously injured in a motorbike accident in 2024. According to ACC, general manager Shon Smith visited Broadley in hospital and kept in contact throughout his recovery – reinforcing that Broadley’s position in the company was secure. Broadley said those communications reduced his anxiety about employment, allowing him to direct his energy toward getting better rather than worrying about his livelihood.
When Broadley was ready to return, ACC developed a plan alongside the employer, his general practitioner, and a physiotherapist. He initially worked shortened hours in tasks suited to his physical state at the time – among them, passing on skills and experience to drivers who were newer to the company. His duties expanded as his condition improved. Broadley is reported as saying the return to work contributed to both his physical and mental recovery. Main said the case illustrated what the corporation considers the central logic of workplace-based rehabilitation. “We know it’s best for everyone – the client, employer, and all of New Zealand if a client remains employed throughout their recovery. With the right team in place to support the injured person, it’s more likely they will return to their job and the things they enjoy outside of work,” Main said.
ACC publishes turnaround plan progress reports on the last business day of each month. Performance targets are documented in the corporation’s revised 2025/26 service agreement and Statement of Intent 2026-2030, both released alongside the turnaround plan in January. Main said the corporation intended to carry its April performance forward. “We will continue to focus our attention in these areas, as we look to further build our performance momentum in the coming months and years,” she said.
