Jardine Lloyd Thompson Australia (JLTA) will be among the first private insurance providers to benefit from a competitive New Zealand personal injury market after taking an equity share in a local injury management service provider.

JLTA MD Leo Demer told insuranceNEWS.com.au the company’s investment in Wellnz could provide good returns when the NZ Government opens the state-monopoly personal injury insurance market to competition.

NZ Prime Minister John Key signalled an end to state control of workers’ cover during the build-up to the national election on November 8. Mr Key formed a new government after the National Party won a comfortable victory.

The government is yet to outline a timetable for reform, but Mr Demer says the NZ business is well prepared to capitalise.

“Anything can happen in politics, but we will be ready,” he said.

Wellnz Limited was formed in 1995 specifically to help employers deal with their work-related accidents and injuries, and manages 8500 claims annually for some of the 25% of firms currently permitted to opt out of the state Accident Compensation Corporation (ACC) scheme.

JLT bought a 51% stake in Wellnz last year as it eyed a likely Nationals election win. Mr Demer says NZ has a limited pool of skilled workers’ compensation specialists, and five of the 10 Wellnz senior management team are former ACC staff.

Wellnz CEO Brian Blackman told insuranceNEWS.com.au Australian insurers entering the NZ market are unlikely to set up in-house claims divisions and will instead contract services to specialist providers.

“We could potentially grow fivefold,” he said.