The Insurance Council of New Zealand (ICNZ) says it’s unclear what impact the proposed privatisation of the Accident Compensation Corporation’s (ACC) workers’ compensation business will have.

Last week ACC Minister Nick Smith discussed plans to open up the “work account” to the general insurance industry, saying the Government’s proposal would be released later this month.

Both Labour and the Greens voiced their opposition, saying the changes will lead to more suffering for injury victims.

Labour ACC spokesman Chris Hipkins says there is no evidence suggesting the private insurance industry can deliver the same cover and entitlements at a lower cost.

He believes the only way the privatisation plan will work is for insurance companies to increase costs and reduce entitlements.

Greens ACC spokesman Kevin Hague has called for an independent review of the proposed changes to ensure all accident victims get the support they need.

But ICNZ CEO Chris Ryan told insuranceNEWS.com.au it’s too early to speculate what the impact of a privatisation would be.

“We are not clear yet on the details, so we will have to wait for an announcement,” he said.