The New Zealand Government will proceed with opening up its personal injury compensation system to competition following the National Party’s re-election at the weekend.

Segments of the Accident Compensation Corporation (ACC), the no-fault accident scheme for all New Zealanders and visitors, will be opened to private insurers. ACC Minister Nick Smith said before the election that this includes workers’ compensation, operated by the ACC Work Account.

He says the Government will retain the ACC in the market and investigate introducing competition to its motor vehicle account and earners’ account, which covers non-workplace injuries but is levied on workers and the self-employed.

Australian workers’ compensation manager Employers Mutual last month gained a presence in the New Zealand market after buying an ACC subsidiary.