New Zealand’s Accident Compensation Corporation (ACC) has begun publishing monthly performance reports linked to its Turnaround Plan, a programme the organisation says is aimed at changing how it manages long-term claims and overall scheme performance.
Minister for ACC Scott Simpson has confirmed that ACC will release a Turnaround Plan progress report on the last business day of each month, starting with January 2026 results. The reports outline how ACC is tracking against new performance targets set by the board and reflected in an updated ministerial letter of expectation. A key metric in the January update is the Long-Term Claims Pool (LTCP), which measures the number of clients receiving weekly compensation for more than one year. ACC reported LTCP growth of 1.8% for January, down from 14.5% in January 2025, and said the latest figure represents the lowest growth rate in a decade.
ACC has indicated that it has been focusing on clients with less serious injuries, such as sprains and strains, with the stated aim of supporting earlier returns to independence and shortening the duration of weekly compensation. Chief executive Megan Main said the organisation is targeting rehabilitation outcomes that align with clients’ needs. “We’re focused on putting clients first with care that leads to lasting recovery, ensuring injured people get the right level of support at the right time. Staying on the scheme longer than necessary has negative impacts for our clients, their family, community, and employer. It also puts pressure on the ACC scheme. We want to make sure we’re there for New Zealanders who need our help and support. For some people, that might be a lifelong journey. For others who’ve sustained less serious injuries, we want to support them in their recovery and get them back to independence,” Main said.
The January Turnaround Plan report also sets out financial and return-to-work indicators that are relevant for scheme funders and insurance market observers. For the financial year to Jan. 31, 2026, ACC’s claim costs totalled $4.9 billion, which the organisation said was $251 million below budget. As at Jan. 31, 60.9% of clients receiving weekly compensation had returned to work or independence within 10 weeks, which ACC reported as the highest level since the 2023-24 year.
Main said the new reporting cycle is intended, from ACC’s perspective, to keep attention on the Turnaround Plan priorities and to provide regular information on performance trends. “January’s report is encouraging and reflects several months of performance improvements and the sustained efforts of teams across ACC, which we’ll continue to build on,” she said. ACC said the monthly reports will be made available on its website and will include data on long-term claims, return-to-work outcomes, costs, and other operational metrics.
The Turnaround Plan, released in January 2026, outlines ACC’s response to the Finity review of claims management and rehabilitation performance and to the updated letter of expectation from Simpson. The plan also incorporates recommendations from a board-commissioned review into organisational culture and a Treasury-commissioned review of ACC’s investment function. ACC board chair Jan Dawson said the plan sets out how the corporation will move toward new performance targets through three priority areas:
Dawson said actions already in train had contributed to some recent results but that further operational changes are expected. “The board acknowledges ACC’s performance needs to improve. While some challenges are outside ACC’s control – including inflation, pressures in the wider health system, and court decisions expanding the scheme’s scope – many can be addressed through operational action. The board is committed to delivering on the minister’s expectations to turn around performance and will drive ACC to deliver better outcomes for injured New Zealanders,” Dawson said.
Main pointed to cost growth as a factor behind the Turnaround Plan. She said ACC spent $8.1 billion on rehabilitation, treatment, and compensation last year, compared with $4.9 billion a decade earlier, an increase of 65%. “Ensuring the scheme remains affordable and is able to support future generations is of the utmost importance. While we have done a significant amount of work already, which has led to improvements in rehabilitation performance, there is more to do,” she said.
Main added: “This work isn’t about taking away the support people receive from ACC to recover from their covered injuries. It’s about ensuring injured people get the right level of support, at the right time. This includes supporting long-term clients with less serious injuries back to independence (including back to work where this is practical), working in partnership with health providers to improve client outcomes, and ensuring people are getting the right level of support that reflects their current needs. Staying reliant on the scheme longer than necessary has negative impacts for our clients, their whānau, community, and employer. It also puts pressure on the AC scheme. But we cannot do this alone. I’m asking all New Zealanders to play their part by keeping themselves and their communities safe and by playing an active role in their recovery after injury. We need support from the health sector, from providers, from New Zealanders, and from employers to ensure we protect the AC scheme for the long term.”
In parallel with the Turnaround Plan, ACC has released a new strategy, Statement of Intent, and Service Agreement to guide its activities over the next four years. According to ACC, these documents, together with the monthly performance reports, are intended to provide a structured basis for monitoring rehabilitation outcomes, cost trajectories, and operational settings. The plan and its supporting documents will be overseen by the ACC board and the minister, with the monthly reporting schedule expected to give insurance professionals and other scheme participants a regular view of how the organisation’s long-term claims, return-to-work results, and cost management are developing over time.
