Under threat from private competition, NZ’s state monopoly Accident Compensation Corporation (ACC) has released an independent report stating it’s a leading provider of personal injury insurance.

Last year the ACC commissioned PricewaterhouseCoopers Australia to undertake a major review as part of its future planning strategy.

NZ goes to the polls later this year, with the opposition National Party proposing to reintroduce private competition to the personal injury market.

National holds a 10% lead in opinion polls over the Labour Government of Helen Clark.

The PWC report says the scheme works well compared with similar private schemes operating elsewhere. It has low administration costs and good benefit levels, and also promotes a prompt return to work.

By comparison, privately underwritten workers’ compensation schemes have higher administration costs due to profit and marketing needs, the report says.

NZ Insurance Council CEO Chris Ryan says the market will have to await the election outcome, but told insurance.NEWS.com.au he doubts the PWC report will hold much sway.

“It has been proven time and time again that competition is better than a monopoly,” he said.