The New Zealand Accident Compensation Corporation (ACC) has appointed former Axa NZ CEO Ralph Stewart as its new CEO, effective from September 19.

Mr Stewart has 27 years’ experience in insurance and asset management. He was CEO of Axa NZ for seven years until it was taken over by AMP. He has also served as deputy chairman of the Investment Savings and Insurance Association.

The appointment of an insurance industry representative has angered New Zealand’s major opposition parties, Labour and the Green Party, who see it as a move towards privatising the state-owned body, which provides no-fault personal injury cover.

The Government has proposed opening work-related personal injury cover to the private sector, giving employers a choice of buying cover from the ACC or a private insurer. 

The opposition parties have said this will be a gift to the Australian insurance industry and reduce the ACC’s focus on treatment and rehabilitation.

IAG says it has made a submission to the Government about the proposal to open up the market.

In its profit announcement last week, the group – which owns dominant insurers NZI and State Insurance – says if the scheme “facilitates true competition, IAG will consider entering this business”.