Second Quarterly Report 2022 2023

December 2022
Second Quarterly Report 2022/23

Table of contents
Key Performance Measures 3 Appendices 27
Appendix 1: Financial statements 27

Injury Prevention 7
Appendix 2: Additional financial information 35
Appendix 3: Additional measures 36

Claims Experience 8
Appendix 4: Organisational Risk 37
Claims Volumes 8
Appendix 5: Service Agreement Initiatives 39
Customer Outcomes and Experience 9
Trust 9 Introduction
Timeliness and Reviews 11 This report provides a summary of performance for the 2022/23 financial year. Quarterly reports
should be read in conjunction with the Service Agreement, Statement of Intent, and the reports
Rehabilitation: Weekly Compensation 12 of any preceding quarters for additional context on performance.
Rehabilitation: Non-Weekly Compensation 15 The quarterly report details:
Sustainability 16 Year-to-date (YTD) results against the measures included in the Service Agreement for 2022/23
and Statement of Intent 2021-2025
Financial summary 17
• status of implementing key initiatives as set out in the Service Agreement
Claims Costs 18 • financial performance
• significant trends, risks or issues that impacted performance.
Outstanding Claims Liability 20
We use the following definitions to assess the status of performance for each individual measure.
Financial sufficiency 22
Organisational health and capability 23 Indicator Full Year Outlook
People 23
Information and Technology 25

G Tracking to meet or better than target.
If a financial measure, target is met YTD
A
Integrated change investment portfolio 26 Achieving target at year-end is not certain.
If a financial measure result is <10% from target YTD
R Low probability of meeting target at year end.

If a financial measure result is ≥ 10% from target YTD
2
Key Performance Measures
YTD FULL YEAR 2022/23 2021/22
INJURY PREVENTION
Q2 ACTUAL TREND TARGET OUTLOOK Q1 ACTUAL ACTUAL
R
Return on investment:
$2.13:$1 Deteriorating $2.12:$1 $2.17:$1 $2.18:$1
0 to 20-year injury prevention programmes
G
$1.70:$1 Deteriorating $1.65:$1 $1.72:$1 $1.74:$1
Workplace injury prevention programmes
R
Rate of serious injury (inc. fatal):
10.8 Deteriorating < 8.9 9.6 9.3
R
0.20 Stable < 0.18 0.29 0.25
YTD FULL YEAR 2022/23 2021/22

CUSTOMER OUTCOMES
& EXPERIENCE Q2 ACTUAL TREND TARGET OUTLOOK Q1 ACTUAL ACTUAL
Return to work within ten weeks 64.0% Stable 64.6% A 63.9% 63.9%
R
Return to independence for those
76.3% Deteriorating 87.5% 79.8% 85.4%
not in the workforce
Growth rate of the Long-Term Claim Pool +6.2% Improving +6.4% A +7.7% +8.8%
Public trust and confidence 54% Improving 58% A 52% New Methodology
Client net trust score +18 Improving +28 R +15 +19
Client net trust score for Māori +15 Improving +27 R +11 +23
Provider net trust score -33 Improving -20 R -35 -35
Business net trust score -34 Improving -17 R -36 -24
3
Key Performance Measures
YTD FULL YEAR 2022/23 2021/22
SUSTAINABILITY
& GOVERNANCE Q2 ACTUAL TREND TARGET OUTLOOK Q1 ACTUAL ACTUAL
A
Change in average
+8.6% Deteriorating ≤12% +4.9% +2.3%
treatment cost per claim
A
Average care hours
1,399 Deteriorating 1,395 1,397 1,408
per serious injury claim
A
Within
Actuarial movement +0.60% Deteriorating +3.2% +3.2%
-3% to +1%
G
Investment performance
0.54% Improving +0.15% -0.10% +0.93%
after costs relative to benchmark
YTD FULL YEAR 2022/23 2021/22

ORGANISATIONAL HEALTH
AND CAPABILITY INTENTIONS Q2 ACTUAL TREND TARGET OUTLOOK Q1 ACTUAL ACTUAL
Employee net promoter score +11 Improving +12 A +10 +10
Total recordable injury frequency rate 2.2 Deteriorating <3.5 A 2.2 2.0
Number of category 3, 4 and 5 <3

privacy breaches and near misses
3 Stable
No Category 5
R 1 6
Overall operational system availability 99.8% Stable 99.5% G 99.8% 99.9%
4
Key Performance Trends
OUTLOOK
Return on investment: Return to work within ten weeks Business net trust score
OUTLOOK
0 to 20-year injury prevention programmes OUTLOOK
Amber
Red Red
65.0% 64.0% TREND
TREND
TREND
$2.13:$1 63.3% Stable -17
Deteriorating Improving
-24
TARGET -27
TARGET
-33 TARGET
-36
FY FY Q3 Q4 Q1 Q2 64.6%
FY FY Q3 Q4 Q1 Q2 19/20 20/21 21/22 21/22 22/23 22/23 FY FY Q3 Q4 Q1 Q2
$2.12:$1 -17
19/20 20/21 21/22 21/22 22/23 22/23 19/20 20/21 21/22 21/22 22/23 22/23
Return to independence for OUTLOOK

Return on investment: OUTLOOK those not in the workforce
Workplace injury prevention programmes Red Client net trust score
Green OUTLOOK
89.1%
87.1% TREND
$1.70:$1 TREND + 25 Red
+ 23
76.3% Deteriorating + 19 + 18
Deteriorating + 15 TREND
TARGET
TARGET Improving
87.5%
CUSTOMER OUTCOMES & EXPERIENCE

FY FY Q3 Q4 Q1 Q2 $1.65:$1 FY FY Q3 Q4 Q1 Q2 TARGET
FY FY Q3 Q4 Q1 Q2
19/20 20/21 21/22 21/22 22/23 22/23 19/20 20/21 21/22 21/22 22/23 22/23
19/20 20/21 21/22 21/22 22/23 22/23
Rate of serious injury (inc. fatal): +28
OUTLOOK
Growth rate of the Long-Term Claim Pool OUTLOOK
Red Provider net trust score
10.8 OUTLOOK
9.8 12.6%
Amber
TREND
8.7%
Red
TREND
6.2%
Deteriorating TREND
Improving
TARGET Improving
-25
TARGET -28
INJURY PREVENTION
-33 TARGET
FY FY Q3 Q4 Q1 Q2 < 8.9 FY FY Q3 Q4 Q1 Q2 -35 -35
19/20 20/21 21/22 21/22 22/23 22/23 19/20 20/21 21/22 21/22 22/23 22/23 +6.4% FY FY Q3 Q4 Q1 Q2
Rate of serious injury (inc. fatal): 19/20 20/21 21/22 21/22 22/23 22/23 -20
OUTLOOK Public trust and confidence
Workplace injury prevention programmes Māori net trust score
OUTLOOK OUTLOOK
Red
54% Amber Red
TREND 52%
0.20 0.20 TREND TREND

Stable + 23 + 23
+ 20
Improving + 15 Improving
+ 11
TARGET
TARGET TARGET
FY FY Q3 Q4 Q1 Q2 < 0.18 Q1 Q2
22/23 22/23 58% FY FY Q3 Q4 Q1 Q2 +27
19/20 20/21 21/22 21/22 22/23 22/23
19/20 20/21 21/22 21/22 22/23 22/23
5
Key Performance Trends
Employee net promoter score OUTLOOK
Change in average treatment cost per claim 21
OUTLOOK
Amber
8.6%
Amber
11 TREND
TREND
Improving
3.4% Deteriorating
TARGET
TARGET
FY FY Q3 Q4 Q1 Q2 FY FY Q2 Q4 Q2 +12
≤12%
ORGANISATIONAL HEALTH AND CAPABILITY INTENTIONS

19/20 20/21 21/22 21/22 22/23 22/23 19/20 20/21 21/22 21/22 22/23
Average care hours per serious injury claim OUTLOOK Total recordable injury frequency rate OUTLOOK
3.2
Amber Amber
2.7
1,399 TREND TREND
1,393 Deteriorating Deteriorating
TARGET TARGET
FY FY Q3 Q4 Q1 Q2 1,395 FY FY Q3 Q4 Q1 Q2 <3.5
19/20 20/21 21/22 21/22 22/23 22/23 19/20 20/21 21/22 21/22 22/23 22/23
Actuarial Movement OUTLOOK The number of category 3, 4 and 5 OUTLOOK

SUSTAINABILITY& GOVERNANCE
privacy breaches and near misses

Amber Red
0.60%
TREND
TREND
3
0.48% Deteriorating Stable
TARGET
0 TARGET
FY FY Q2 Q4 Q2
19/20 20/21 21/22 21/22 22/23
-3 to +1% FY FY Q3 Q4 Q1 Q2
<3
19/20 20/21 21/22 21/22 22/23 22/23
Investment performance
after costs relative to benchmark OUTLOOK
Overall operational system availability OUTLOOK
Green 99.9%
99.8% Green
TREND
TREND
0.54% Improving
Stable
0.16%
TARGET
TARGET
FY FY Q3 Q4 Q1 Q2
19/20 20/21 21/22 21/22 22/23 22/23 +0.15% FY FY Q3 Q4 Q1 Q2 99.5%
19/20 20/21 21/22 21/22 22/23 22/23
6
Injury Prevention
MEASURE 2022/23 TREND FULL YEAR FULL YEAR 2022/23 2021/22
Q2 ACTUAL TARGET OUTLOOK Q1 ACTUAL ACTUAL
$2.13:$1 Deteriorating $2.12:$1 R $2.17:$1 $2.18:$1
$1.70:$1 Deteriorating $1.65:$1 G $1.72:$1 $1.74:$1
Number of claims avoided through our injury prevention initiatives 8,910 Stable 16,105 G 4,778 12,353
Investment in Kaupapa Māori programmes $3.0m Stable $7m G $1.5m $7m

10.9 Deteriorating < 8.9 R 9.6 9.3

0.20 Stable < 0.18 R 0.29 0.25
Return on investment (ROI): Rate of serious injury:

• While the 0 to 20-year injury prevention programme return on investment figure is above • The 0 to 20-year Fatal and Serious Injury result has started to increase (unfavourably) over
target, our forecasting suggests we will not meet the target by end of June 2023. NeoNatal is the last few months. We expect this trend will continue and this target is unlikely to be met
one of the programmes expected to generate significant returns but is likely to be revised by June 2023. Based on current information we expect the metric to be over 11 at year-end.
down, putting more pressure on this metric.
• Older adult falls, we have a large investment based on research to address fatalities, are
• The Workplace ROI is tracking well and some better-than-expected results in FarmStrong are increasing (unfavourably) and this offsets the other areas that are preforming. We expect
providing an extra buffer for this metric at present. older adult falls claims to be higher than 8.9 per 100,000 of population by June 2023.
Claims avoided: • The Workplace Fatal and Serious Injury result decreased (favourably) this quarter. It
• Claims avoided is on track as a result of the SafeKids (Child Injury Prevention programme). should remain flat but slightly over target (unfavourable) for the remainder of 2022/23. The
This programme underperformed last financial year but has represented about half of the numbers are small, and a few claims can move this metric, as was the case last year.
2022/23 claims savings to date. FarmStrong and Netball make up remaining benefits. However the programmes are focused in the high-risk sectors.
• Rugby which is generally a strong performer, is underperforming this year. We have a long
history with Rugby and observe an under-performing year approximately every ten years. The Actions underway:
current result fits this timeframe. • We are leading cross-government collaboration to increase the activity and investment in
the primary prevention system.
• The target for the Falls programme was revised and reduced. It is performing well, but still
short of expectations. This will impact on the ROI results in 2022/23. • ACC’s Preventable (a.k.a. “Have a hmmm”) will be increasingly delivered through a wide
range of community, cultural and interest based partners over the next two to three years.
• Some programmes that save high value claims (Young Driver and Motorcycles) are on track.
• Nymbl, ACC’s digital strength and balance app is being launched in the third quarter
WorkSafe update: complement our investment in Live Stronger for Longer. This platform is expected to reduce
• We are still unable to complete the 2021/22 ROI result for WorkSafe. ACC has received a the risk of injury as a result of falls for people over the age of 65 years (55 for Māori) by
high-level breakdown of the $11m invested in WorkSafe for 2021/22. Further detail has been encouraging participants to partake in strength and balance exercises
requested to enable the calculation of the 2021/22 WorkSafe ROI.
7
Claims Experience: Claims Volumes
MEASURE MOST RECENT YTD FULL YEAR 2021/22 NEW CLAIMS GROWTH RATES - ROLLING 12-MONTHS
12 MONTHS
RESULT ACTUAL BUDGET ACTUAL
New WC New Registrations
20%
New claims registered 18.1% END OF
December 2022 1,893,977 2,209,232 1,805,401 YEAR BUDGETS
(rolling 12-months) 15%
12.7% 12.6%
11.9%
10%
New Weekly Compensation
December 2022 95,083 106,969 88,955
claims (rolling 12-months)
5%
3.3%
12-MONTH FY
0%
ROLLING GROWTH BUDGET -1.3%
-3.7% -6.7%
-5%
New claims registered -1.3% +11.9% -8.1%
-10%
-15% -14.0%
New Weekly Compensation claims 3.3% +12.6%
-20%
2019/20 2020/21 2021/22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23
• Monthly new claims registered claim volumes are still lower than pre-COVID-19 levels but are
showing an increasing trend. Monthly new Weekly Compensation (WC) claim volumes are • We revised our claims forecast 1 using Treasury’s HYEFU preliminary forecasts and actual
now higher than pre-COVID-19 levels. The rolling 12-month averages are rising as the heavily registrations during the September quarter. The forecast includes an allowance for maternal
impacted COVID-19 lockdown months start to roll out of these measures. birth claims, but not for any further COVID-19 waves or further lock-down restrictions.
• New claims registered volumes decreased 1.3% for the rolling 12-months to December 2022. • The next update will be completed in February 2023 ahead of completing the 2023/24 Budget.
Volumes in December 2022 (~145k) are approximately 4k lower than December 2021 and • This September forecast is lower than the budgeted level for both new claims registered and
16k higher than December 2020. new WC claims. This is because economic activity is now forecasted to be lower than initially
• New WC commencements increased 3.3% for the rolling 12-months to December 2022. expected, with a slower growth in the labour force.
Volumes in December 2022 (~8.5k) are approximately 1.3k higher than December 2021 and • While the number of registered claims is lower, the implied 2022/23 growth rate increased
on par with December 2020. from 11.9% to 17.1%. The final 2021/22 number of registered claims was 8.6% lower than
BEFU estimate (1,974,291) which results in an increase in the year on year growth rate.
VOLUME OF NEW REGISTRATIONS - MONTHLY VOLUME OF WC COMMENCEMENTS - MONTHLY
200,000 10,000
180,000 8,530
160,000 8,000
140,000
120,000 6,000
145,897
100,000
80,000 4,000
60,000
40,000 2,000
20,000 2021/22 2022/23 2021/22 2022/23
0 0
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
1 The
claims forecast uses several indicators including age, gender, fund account as well as economic indicators such as GDP,
unemployment and kms travelled. 8
Customer Outcomes and Experience: Trust
Public trust and confidence 54% Improving 58% A 52%

New
Methodology
Client net trust score +18 Improving +28 R +15 +19
ACC is focused on the best possible outcomes for clients given their situation 73% Stable 78% A +73 77%
Client net trust score for Māori +15 Improving +27 R +11 +20
Māori lodgement ratio 0.82 Stable 0.83 G 0.82 0.82
Provider net trust score -33 Improving -20 R -35 -35
Business net trust score -34 Improving -17 R -36 -24
Public trust and confidence2: Client Net Trust Score:

• Public Trust and confidence in ACC improved to 54% (was 52%). Our position relative to other • Client Net Trust Score (NTS) result increased to +18 (was +15). Trust from Assisted
Government agencies is stable at 12 out of 30 (was 13). Recovery clients improved to +20 (was +13). However trust from Supported Recovery clients
declined to -9 (was -3) and continues to impact the overall NTS result.
• This quarter we ran the following campaigns to build public perception and engagement:
• The perception from clients that ACC is focused on the best possible outcome remains stable
• National awareness campaign - Kia mahea kia puāwai (Making it clear so we can
at 73% and most clients are satisfied with the way their claim is handled at 71% (was 70%).
flourish). This is targeted to Māori and includes messages about accessing ACC and
the types of support available. • We remain focused on improving our claims management model. The first phase of the
Rehabilitation Performance Programme is now complete. This phase focused on:
• An overarching public engagement campaign to highlight prevention, care and
recovery services and provide context for our other campaigns. • implementing capability streaming via specialised teams
• Continuation of Preventable, ACC’s long-term injury prevention behaviour change • freeing up capacity to support proactive rehabilitation
programme. • supporting the specialised focus areas with learning support
• developing performance reporting relevant to capability streaming.
• These changes are driving improvements in rehabilitation measures based on increases in:
• timely completion of employer welcome conversations
• referrals to the Stay at Work service
• proactive client contact to progress rehabilitation.
2 This year the methodology for General Public surveying shifted from being 100% telephonic, to 100% online, resulting in the 2022/23 target to be rebased to 58%. 9
Customer Outcomes and Experience: Trust
Māori NTS: Provider NTS:
• The Māori Client NTS result increased to +15 (was +11). Like the all-client result, most • Provider NTS increased to -33 (from -35), driven by a significant improvement from
Māori clients agree that ACC is focused on the best possible outcome at 72%. However Rehabilitation Providers at -19 (was -41). Physios continue to have the lowest NTS and
satisfaction in the way their claim is handled declined slightly to 67% (was 69%). declined further this quarter to -59 (was -49). GPs also declined to -35 (from -33).
• Whāia te Tika aims to improve equity of access, experience and outcomes for Māori • There has been a notable improvement in the perception ACC provides clear guidelines
who are injured, and enable direct relationships with Māori providers. This quarter about the types of claims likely to be accepted. However there has been a long term gradual
activity to support this Kaupapa included: decline in Provider perception of performance, especially in relation to patient engagement
• Completion of service design for the first tranche of Kaupapa Māori Solutions in the (engagement and rehabilitation support with ACC frontline).
Tainui waka rohe. The design panel will concept test in the third quarter. • To improve care pathways for treatment we are continuing the Escalated Care Pathway Pilot.
Procurement for two further design panels is also complete (Tāmaki Makaurau and We expect to scale up and operationalise the pilot in 2023/24. We have also continued the
Te Tai Tokerau rohe). GPMRI initiative allowing General Practitioners greater access to diagnostic services and
• Embedding ACC’s Rongoā Māori service, to ensure traditional Māori care and reducing unnecessary specialist referral.
healing is available to kiritaki. • We have continued to deliver a range of educational materials for providers in a range of
• Continued work on the Raranga project. This includes publishing updated cultural formats including quick guides, videos, updates and webinars. Topics include what ACC
competency guidance for providers, and the development of a new cultural safety does, cover and causation, roles and responsibilities and how best to work with us. Further
policy to be implemented in 2023. resources will be developed over the next 12 months.
• Progression of Hāpai – Te Pihinga, to create a culturally responsive case • Kaupapa Māori Solutions and the Raranga project (mentioned earlier) also aim to improve
management experience for Māori clients and their whanau. Phase 1 will be provider sentiment.
reviewed this quarter to support rollout into new regions.
Business NTS:
• Business NTS increased to -34 (was -36). Overall, large businesses continue to have the
lowest levels of trust at -38 (was -39) and are the least satisfied ACC is meeting
the needs of their business at 29%. Small business trust declined this quarter to -36 (was
-30).
• Medium business (-27, was -34) and self-employed (-35, was -37) also have low levels of
trust, but have shown some improvements this quarter.
• There has been some improvement in the view that that ACC provides businesses with
real benefits and value at 36% (was 33%) and ACC is easy to deal with at 35% (was
33%).
• Trust results are partially influenced by the inflationary pressures, labour shortages and
tightening financial conditions facing businesses. Our focus remains on factors within our
control. This includes improving the ease of doing business and building effective
engagement, including greater involvement in the rehabilitation of injured employees.
• Our Recovery at Work initiative aims to empower employers to play an active role in
supporting the recovery of their workers. This quarter we focused on:
• Targeted engagement to leverage resources and promote digital functionality.
• Testing Recovery at Work notifications in the MyACC for Business platform.
• Improved visibility of payment information in the MyACC for Business platform.
10
Customer Outcomes and Experience: Timeliness and Reviews
Speed of cover decisions - non-complicated claims 0.79 days Stable <0.9 days G 0.82 days 0.83 days
Speed of cover decisions - complicated claims 63.2 days Improving <70 days G 65.4 days 69.7 days
Speed of cover decisions – Complicated claims Actions underway to improve timeliness performance
• The December monthly complicated cover decision result was 65.3 days an improvement • Planning continues to focus on cover resource and leadership oversight towards specific work
on the November result of 69.2 days. types to build performance and improve triage efficiency.
• The second quarter rolling 12-month result (63.2 days) is an improvement on last quarter. • Utilising reporting to improve decision making conversion by frontline staff.
• Mentor support continues for frontline staff to improve understanding of decision making principles.

Reviews as a percentage of decline decisions 7.5% Stable ≤ 8.5% G 7.4% 7.7%
Average time to resolution for claims with reviews 131.8 days Stable ≤ 130 days G 131.9 days 129.7 days
Proportion of ACC reviews upheld (in favour of ACC) 91.3% Stable ≥ 87% G 90.7% 90.3%
Review Volumes Actions underway to improve review performance

• Review volumes have been reducing over the past 12 months (-11.7%). This is due to the • Resolution Services has been working with Customer Solutions to develop an intelligent
continued focus on internal process changes which have enabled earlier engagement with review allocations tool. This will ensure the right work reaches the right person at the
customers, resolving issues before lodging a formal review application. right time. The allocations tool will focus on staff capacity, capability and complexity of
work.
Timeliness of Review Resolution and Percentage of Reviews Upheld • In late January, we are looking to update agreed ways of working and provide feedback
from review trends to improve customer satisfaction and reduce disputes.
• The rolling 12-month review timeliness measure is still just above target, with results for the second
quarter at 125.1 days. This latest quarter result being below the 130-day metric is attributable to
timely internal early resolution, increased alternative dispute resolution, and improved turnaround
time for independent review outcomes.
• The percentage of reviews upheld remains stable.
11
Customer Outcomes and Experience: Short-term rehabilitation: Weekly Compensation
Return to work within ten weeks 64.0% Stable 64.6% A 63.9% 63.9%
Return to work within nine months 90.0% Stable 91% A 89.8% 89.9%
Average Weekly Compensation days paid

105.8 days
(-8.4 days)
Improving
104.0 Days
(-6.6 days) R 107.4 days
(-10.0 days)
107.7 days
(-10.3 days)
Ten-week and nine-month return to work rates RETURN TO WORK WITHIN TEN WEEKS AND NINE MONTHS - 52 WEEK ROLLING
9 Month (LHS) 9 Month Target (LHS) 10 Week (RHS) 10 Week Target (RHS)
• The ten-week return to work rate has remained relatively unchanged
compared to the end of the previous quarter.
93.0% 68.0%
• The nine-month rate improved slightly from 89.9% to 90.0% by the end of the
December 2022 quarter. This has been stable at around this level since the
end of April 2022.
• There has been subdued growth in the volume of new WC claims since
91.0%
September 2021 and as expected, has resulted in fewer less clinically
complicated claims being managed. These claims would usually have shorter 66.0%
return to work outcomes. 90.0%
• However, we are starting to see a higher proportion of shorter term WC exits,

which should support improving results if the trend continues. This includes a 89.0%
lift in the share of the 0-70 days WC population compared to early 2022, with
little to no change in the 0-273 days WC share.
• Effects of the COVID-19/Omicron outbreak continue to be felt, however, to a 64.0% 64.0%
lessor extent than earlier in 2022.
87.0%
• The targets for 2022/23 were set with the assumption that COVID-19 will
continue to disrupt health sector services and lower claim volumes will be
seen during the year. As anticipated, the Omicron outbreak has continued to
disrupt health sector service timeframes and new claim volumes are tracking
at a lower rate than pre-COVID-19 levels. 85.0% 62.0%
Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23
12
Customer Outcomes and Experience: Short-term rehabilitation: Weekly Compensation
RETURN TO WORK WITHIN TEN WEEKS AND NINE MONTHS - 13 WEEK ROLLING Average Weekly Compensation days paid
9 Month Rehab Rate (LHS) 9 Month Target (LHS) 10 Week Rehab Rate (RHS) 10 Week Target (RHS)
• The Average Weekly Compensation Days paid (AWCDP) result started rising from
95.0% 75.0%
November 2021 to May 2022 before levelling off until October 2022. During
90.0% November 2022 the result improved 1.1 days to 106.5 days, the largest change for a
70.0%
single month since it deteriorated 1.4 days in November 2021. In December 2022 the
85.0%
89.7% result improved by a further 0.7 days to 105.8.
80.0%
• ‘AWCDP’ measures WC exits between 29 and 365 days. The changing profile of the
65.0%
75.0% WC exits over the past year has had a direct impact on this result:
70.0% • The proportion of claim exits with 29 -70 days WC has been fairly stable
60.0%
63.2% between December 2021 and November 2022, but remains about 0.6
65.0%
percentage points lower than prior to October 2021. The impact of the 2021
60.0%
55.0%
COVID-19 national lockdown began to be noticed in rehabilitation results from
late in October 2021.
55.0%
• Since October 2022 the share of exits with 0-28 days WC has picked up by 0.7
50.0% 50.0%
percentage points (note 0–28 day WC exits are not included in this AWCDP
Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23
measure). The share of exits with 29-70 days WC fell slightly at the same time
but has since recovered during November and December 2022.
• The 13-week rolling averages provide a more recent view of performance compared to the longer
52-week rolling periods. These show how performance improved and stabilised from early 2021, • The proportion of 71-182 days WC exits increased from October 2021, likely
with the 2021 COVID-19 lockdowns impacting these results from around October 2021. related to lockdown restrictions around this time resulting in clients staying
longer on WC. This share has settled in recent months and is now slightly lower
• The 13-week average of the nine-month rate has been more stable since June 2022. than it was in September 2021.
• Weekly results (below) compare performance in the 2022 calendar year with 2021. The ten-week • Since October 2021 the share of WC exits with 183 to 365 days paid slowly
rate has been fairly close to 2021 in most weeks. The impact of lockdown restrictions was increased with the share of this group growing from 8.5% in October 2021 to
noticeable in weekly results from October 2021. The nine-month rate was generally lower until 9.5% by May 2022. In recent months it has fallen and at the end of December
June 2022 but has been closer since this time. 2022 it is 8.8%.
WEEKLY TEN WEEK RATE PERFORMANCE WEEKLY NINE MONTH RATE PERFORMANCE
Actions
100%
75%
• The Rehabilitation Performance Programme (RPP) commenced gradually in May 2022
65%
95% and has been fully operational for several months now, showing positive signs in terms
of lead indicators and having an impact on stabilising and improving service level
90% targets.
55%
45% 85% • Real time and fortnightly performance reporting and capability supports are now in
place.
35% 80%
• Future actions to improve rehabilitation performance will be led out of the Rehabilitation
25% 75% Improvement Group which was stood up in early December. Building on the good work
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
from the RPP as well as rehabilitation system design and reporting will be initial focus
70-day rate (CY-21) 70-day rate (CY-22) 273-day rate (CY-21) 273-day rate (CY-22) areas for the group.
13
Customer Outcomes and Experience: Long-term rehabilitation: Weekly Compensation
Growth rate of the long-term claims pool +6.2% Improving +6.4% A +7.7% +8.8%
Long-term claims pool returns to independence 5,899 Improving 5,100 G 5,725 5,470
Rate of long-term clients in part-time work 14.1% Improving 11.5% G 13.6% 13.3%
Growth rate of the long-term claims pool LONG-TERM CLAIMS POOL RETURNS TO INDEPENDENCE LTCP Return to Independence Target
6,500
• The growth rate of the long-term claims pool (LTCP) has improved to 6.2% for the 12-months
to December 2022. The lower growth rate in recent months has been influenced by a 6,000 5,899
lower number of ‘first-time’ LTCP entries during September and October 2022. This follows 5,500
fewer new WC claim commencements in September and October 2021, due to the
last national COVID-19 lockdown and subsequent restrictions throughout Auckland and some 5,000
CLAIM COUNT
other areas.
4,500
• The recent trend for the LTCP growth rate has been positive and confidence is building that 4,000
the end-of-year target can be met, however some uncertainty remains.
3,500
• The number of long-term clients returning to independence this quarter is 5,899 an 3,000
improvement on the last quarter result of 5,725.
2,500
• The rate of long-term clients in part-time work also remains above target. Monthly results for 2,000
this measure have slowly improved since mid-2021 and have been 13.0% or better since Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23
March 2022.
GROWTH IN LONG-TERM CLAIMS POOL LTCP Claim Volumes Growth Rate Target
• Long-term WC claims growth over the past year has been from non-serious injury clients.
These make up 86.4% of the current active long term WC pool. This share has been slowly 16.0% 20,000
growing in recent years - in December 2021 this was 85.4%.
14.0% 19,000
• Growth for long term non-serious injury clients in the 12-months to December 2022 is 7.5%.
Most of the volume is clients with two to four years of WC paid, along with clients with six to 12.0% 18,000
10 years of WC paid. Clients with two to four years of WC paid make up just under 30% of the
GROWTH RATE (%)
10.0% 17,000
CLAIM COUNT
volume growth for non-serious injury long term WC claims in the past 12 months.
8.0% 16,000
• The number of active long-term WC claims classified as serious injury has continued to slowly
decline since June 2021. The number of these active in December 2022 is 1.1% less than in 6.0% 15,000
December 2021. Clients with ten years or more of WC paid continue to make up just over two- 6.2%
thirds of all active serious injury long-term WC claims. 4.0% 14,000
2.0% 13,000
0.0% 12,000
Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23
2 Claims receiving WC for greater than 365 days. 14

Customer Outcomes and Experience: Rehabilitation: Non-Weekly Compensation
Return to independence for those not in the workforce 76.3% Deteriorating 87.5% R 79.8% 85.4%
RETURN TO INDEPENDENCE FOR THOSE NOT IN WORKFORCE - 52 WEEK ROLLING

Return to independence for those not in the workforce
Adjusted result excluding backdated payments RTI for those not in the workforce Target
• December 2022’s result has declined 0.9% compared to November 2022. This
continues a trend that has been observed since early this year following a period 90%
of stable results from mid-2021 to February 2022.
88%
• This measure reflects the proportion of Non-Earner, Motor Vehicle and Treatment
Injury claims who have never received WC, and who have returned to 86%
independence (i.e. ceased receiving entitlement payments, within 12 months of 85.2%
84%
their claim registration date).
82%
• The key contributors to the decline in this rate include:
80%
• Backdated payments for contractual price increases made to some DHBs
for Non-Acute Rehabilitation (NAR) services during February and April 78%
2022. There have also been some delays from some DHBs in invoicing
ACC while contracts were finalised. These delayed payments impact the 76% 76.3%
measure which uses payment date for a client’s treatment or rehabilitation
as the proxy for when services were last delivered. 74%
• There have been back-payments processed for contracted Home and 72%
Community Support Services. These payments have been made between
70%
May and September 2022. Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23
• There have also been some delays in invoices received from our supplier
for Rehabilitation Equipment services in recent months. During November
and December 2022 there was a larger than usual number of claims paid
for these services as the supplier cleared their billing.
• If an adjustment is made to this measure to exclude the various back
payment codes, along with delayed payments for Non-Acute Rehabilitation
Services and Rehabilitation Equipment, the latest result is 85.2%. It is worth
noting that there have been other back-dated and delayed payments in
previous years however not to this extent.
15
Sustainability
Actuarial movement +0.6% Deteriorating

Within
-3% to +1% A +3.2% +3.2%
Investment performance after costs relative to benchmark 0.54% Improving +0.15% G -0.10% +0.93%
Investment management costs as a proportion of total funds under management 0.09% Stable 0.17% G 0.15% 0.15%
Change in average treatment cost per claim +8.6% Deteriorating ≤ 12% A +4.9% +2.3%
Administration cost per claim $2,036 Stable $2,0533 G $1,502 $2,715
Percentage of total expenditure paid directly to clients or for services to clients 89.1% Improving 89.3%3 G 88.7% 87.9%
Claims processed per FTE 474 4 Stable 566 R 476 4 472
Average care hours per serious injury claim 1,399 Deteriorating 1,395 A 1,397 1,408
Actuarial movement Claims processed per FTE

• Details of the actuarial movement recognised in the December 2022 outstanding claims liability • This measure is expected to improve as the year progresses with the COVID-19 impacted
(OCL) valuation are included on page 20. Initial indications are that the full year strain could be months of lower claims volumes dropping out of the measure.
in the vicinity of $500m. This means achieving this measure at year-end is at risk.
• Forecasts are for higher FTE than budget by 100 mainly due to additional resources
Change in average treatment cost per claim required to support maternal birth injuries claim volumes and an uplift in our Māori Health
capability.
• The change in average treatment cost per claim result for December 2022 is +8.6%. • We will update our claims volume forecast in February 2023 to reflect the most recent
• Elective surgery has the highest share of the growth with more higher cost surgeries being economic factors. However it is unlikely claim volumes will increase enough to counter the
undertaken in recent months. Higher numbers of clients receiving specialist medical care FTE growth forecast.
through Escalated Care Pathways has also contributed, but should result in savings in other
entitlements. Counselling costs are the other main contributor to growth, due to longer treatment Average care hours per serious injury claim
durations. • This value is updated quarterly and increased two hours from 1,397 last quarter.
• There is uncertainty in achieving the year end target, with the calculations for the next six • Despite a strong organisational focus on the assessment and management of care hours,
months being compared with January to June 2022, which had very little growth. High inflation volatility in care hours remains. Some deterioration seen is a result of the
continues to drive up non-fixed priced costs and the rate increases for Cost of Treatment current resurgence of COVID-19. Modelling suggests rates of infection will reduce in
Regulation providers will be implemented in April 2023, increasing costs further. coming months, however achieving the target result remains uncertain.
Administration cost per claim
• Administration costs per claim are on track but risks remain with claim volumes below forecasts.
3 Presented
4 The
on a YTD basis for comparability. Full year targets are $2,599 and 89.4% as outlined in the Service Agreement 2022/23.
claims processed per FTE calculation excludes resources from the New Zealand Income Insurance Scheme (NZIIS).
16
Sustainability: Financial Summary
$m YTD YTD YTD FULL YEAR
ACTUAL BUDGET STATUS BUDGET Key points
Income Levy Revenue
Levy revenue (incl. Appropriations) 2,890 2,793 G 5,655 • Levy revenue is $97m or 3.5%, above budget YTD. This is due to increased liable
earnings in Earners Account ($29.1m) and Work Account ($67.7m), partly offset by
Interest, dividend and rental income 5 914 583 G 1,168 lower levy revenue in the Motor Vehicle Account ($4.5m) with lower Licence and Petrol
R
Levy revenue.
NZIIS Income 8 12 48
Total income 4,040 3,388 G 6,871

Investment returns
• Total investment income of $0.6b is $0.5b below the budget of $1.1b YTD. The
Expenditure investment reserves portfolio returned 1.26% after costs YTD, outperforming the
benchmark by 0.54%.
Claims paid 3,097 3,253 G 6,495
Claims paid
OCL expected increase/(decrease) 1,142 1,339 G 3,507 • Total claims paid YTD are $156m or 4.8% under budget, with ongoing subdued claims
and treatment volumes. Treatment and Elective Surgery volumes remain under budget
OCL net losses from other factors 306 - - due to capacity constraints. Weekly compensation (WC) is under budget with higher
wage inflation more than offset by lower new WC claims.
URL increase/(decrease) (752) (877) R 114 • December new registration volumes are 2.7% lower than December 2021 due to lock-
down impact. Rolling 12-month new registered claims growth rate is -1.3% due to the
COVID-19 restrictions which commenced in August 2021.
Core operating costs 273 276 G 547
OCL
Other operating costs 114 129 G 260
• The OCL increased $27m to $50.3b YTD. The single effective discount rate increased
NZIIS Costs 8 12 G 48 42bps YTD to 4.60%, decreasing the OCL by $3.1b. The projected (medium-term)
inflation rate increased 33bps, adding $1.7b to the OCL.
Total operating costs 395 417 G 855
• A half-year OCL strain of $0.3b, comprises a $0.4b influenceable OCL strain offset by
Total expenditure 4,188 4,132 A 10,971 a $0.1b non-influenceable OCL release.
Surplus / (deficit) from insurance Operating costs

(148) (744) (4,100)
operations • Total operating costs are $22m or 5.3% under budget YTD.
Net gains (losses) on investments (306) 487 979 • Core operating costs are $3m under budget YTD.
• Injury Prevention costs are $10m or 20.4% under budget YTD. This is in part a timing
difference. After a thorough review of programmes, it is now expected that the budget
Economic assumptions impact (OCL) 1,421 - - will be underspent by around $15m (15%) for the full year, from several portfolios.
• Enterprise Change Portfolio costs are $7m or 16.7% under budget YTD, mainly due to
External factors 887 487 979 lower spend in several Agile Release Trains. This is expected to be timing related.
Net (deficit) surplus 739 (257) (3,121)
5 Inline with the intention to exclude gains and losses on investments relating to market movement and economic factors impacting OCL
within the return from insurance operations sub-total, income relating to interest, dividend and rental income are recorded separately.
17
Sustainability: Claims Costs – 31 December 2022
Increases in costs and higher costs than budget are depicted as negative percentages
$m AVE ANNUAL GROWTH GROWTH ON YTD YTD VARIANCE % VARIANCE YTD FY OCL
FY20 – FY22 PRIOR YTD ACTUAL BUDGET STATUS BUDGET MULTIPLIER 6
Weekly compensation 11% (11%) 1,027 1,041 14 1% G 1,564 X7.7
Other compensation (3)% (10%) 107 111 4 4% G 195
Total compensation 9% (11%) 1,135 1,153 18 2% G 1,759
Vocational rehabilitation (25%) (22%) 35 44 9 21% G 92 X4.3
Social rehabilitation 11% (11%) 600 621 21 3% G 921 X22.2
Serious injury 5% (14%) 352 370 18 5% G 582 X33.3
Non-serious injury 18% (7%) 248 250 2 1% G 339 X5.1
Total rehabilitation 8% (11%) 635 665 30 4% G 1,013
Medical treatment 3% (14%) 527 623 96 15% G 956 X2.9
Elective surgery 5% (27%) 274 276 2 1% G 489 X9.1
Public health acute services 8% (11%) 360 358 (2) (1%) A 578
Other treatments 10% (26%) 146 147 1 1% G 224
Total treatment 6% (17%) 1,307 1,404 97 7% G 2,247
All Other misc. expenses 9% (8%) 20 31 11 37% G 48
Total claims paid 8% (14%) 3,097 3,253 156 5% G 5,068
6 TheOCL multipliers are calculated by dividing the OCL by the 2021/22 cash cost. Multipliers can be used as a proxy for duration and
represent the sensitivity of OCL to the movement in cash costs. Sensitive claims are modelled as a separate payment type in the OCL now.
18
The impact of these claims is not included in the above multipliers. Sensitive claims impact weekly compensation and medical treatment.
Sustainability: Claims Costs
Total claims costs

• At the end of the second quarter for 2022/23, total claims costs are under budget by
$156m (4.8%). Claim volumes and treatment volumes remain subdued compared to • Higher than expected costs in Artificial Limbs YTD reflects COVID-19 delayed service
budget, although are now starting to increase. provision of microprocessors for artificial knee joints. These are high cost components and
shifted costs from 2021/22 into the current financial year.
Compensation costs • Since the legislation was introduced in October 2022, over 800 Maternal Birth Injury claims
have been accepted. Whilst this is lower than anticipated, the number of new claims is
• Compensation costs are $18m (2%) favourable. Although higher wage inflation and starting to increase. There was uncertainty as to how costs associated with these claims
lower rehabilitation performance have resulted in higher average costs per claim, would track to budget, however based on the first couple of months we no longer consider
lower claim volumes have reduced the impact of this on total compensation costs. there to be a risk to claim costs for this financial year.
• Additional information on WC and Social Rehabilitation costs and their impact on the OCL is
Treatment and rehabilitation costs on the following pages.
• Treatment and rehabilitation costs are under budget by $127m (6%), primarily from
lower claim and treatment volumes. The unbudgeted additional public holiday Other services
following the death of Queen Elizabeth II is also likely to have contributed up to $20m
to the variance. • Other Services costs are $11m (3%) favourable as a result of lower than budgeted
review costs, and no large backdated attendant care from wrongful action costs.
• Capacity constraints in the health sector arising from the pandemic along with
workforce shortages in some professions continue to influence access to treatment
and rehabilitation services. However these constraints may be starting to ease with
analysis indicating recent small improvements in timelines to access radiology and Risks to claims costs
medical specialists. Timeliness between GP, medical specialists and allied health
• Workforce: Health workforce availability continues to be an issue raised by the
consultations has also improved over the quarter.
sector. We are yet to see any significant influx of overseas workers which would help
• Surgical treatment is $2m (1%) favourable YTD with elective surgery volumes now offset current workforce shortages, though recent Government decisions to facilitate
close to pre-pandemic levels from private hospital suppliers. There are potential risks entry for overseas doctors, nurses and allied health workers may positively impact on
to surgical volumes in coming months should private hospitals reduce some of their this. Delays in accessing services can lead to longer rehabilitation periods and higher
ACC funded capacity to support Te Whatu Ora manage some of their backlog. WC costs.
• Rehabilitation costs are under budget by $30m (5%) with favourable variances being • Inflation: the current high inflationary environment is negatively impacting on
seen in Vocational Rehabilitation Services ($9m /21%) Training for Independence suppliers (staff wages, MECA settlements, travel and materials costs), with a resulting
Services ($15m / 23%) and Non-acute Rehabilitation ($10m / 16%). This is offset to expectation that ACC will increase prices paid beyond what was budgeted.
some extent by overspends in Home and Community Support Services ($4m / 1.6%),
• Capital expenditure: global supply chain delays along with the ongoing conflict in
Rehabilitation Equipment ($3m / 7%) and Artificial Limbs ($3m / 41%).
Ukraine have negatively impacted on the availability of materials. This results in
• Vocational rehabilitation volumes have seen sustained increases since the launch of delayed delivery and in some cases the need for substitution of items at higher
the Rehabilitation Performance Programme. These costs are expected to track closer cost. Global supply chain delays may increase in the next quarter as a result of the
to budget over the remainder of 2022/23 as capability streaming is embedded. relaxation of all COVID-19 restrictions in China.
• Rehabilitation equipment costs have been impacted by the supplier clearing around • Public Health Acute Services (PHAS): is currently $2m over budget and will remain
$24m of back billing in the last two months. This exceeded the accruals but does put over budget for the remainder of the 2022/23 year due to the agreed PHAS increase
the service close to expected costs since the contract went live in 2021. The back being higher than the budgeted value.
billing also affects the return to independence for those not in the workforce measure.
19
Sustainability: Outstanding Claims Liability
OUTSTANDING CLAIMS LIABILITY
The OCL reduced to $50.3b in December 2022
Economic movements over the year to 31 December 2022 resulted in a OCL decrease of $1.4 billion
Discount rate movements: $3.1 billion decrease
OCL: ANALYSIS OF CHANGE ($m) • The single effective discount rate in December 2022 was 4.60% (4.18% June 2022).
The YTD OCL decrease due to discount rate movement is $3.1 billion.
1,654 3,075 Inflation rate movements: $1.7 billion increase
53,500
• The total YTD OCL increase due to inflation (projected and actual versus expected)
is $1.7 billion.
396
52,000
90 • The projected inflation rate over the medium term (up to 2041) in December 2022
1,142
was 1.93%(1.76% June 2022).
Actuarial strain: $306m reflects a 0.6% increase in the OCL

50,500 • This December 2022 valuation and the following analysis is based on claim payment
data to September 2022.
• The total OCL strain is $306 million, mostly from higher serious injury care hours and
49,000 deteriorating WC rehabilitation rates over the previous three quarters.
• The net strain comprises a $396 million influenceable strain and a $90 million non-
50,272 50,299 influenceable release. The non-influenceable release is due to lower mortality among
serious injuries than was expected.
47,500
46,000
OCL as at 30/06/2022 Expected increase OCL Strain OCL Strain Inflation related Discount rate OCL as at 31/12/2022
(Influenceable) (Non-Influenceable) changes assumptions
PAYMENT TYPE OCL INFLUENCEABLE NON-INFLUENCEABLE TOTAL

STRAIN STRAIN STRAIN
Weekly compensation $12,622m $86m - $86m
Sensitive claims $4,625m $31m - $31m
Social rehabilitation care $19,575m $220m ($82m) $138m
Social rehabilitation capital $2,965m $2m ($8m) ($6m)
Other payment types $10,511m $57m - $57m
Total $50,299m $396m ($90m) $306m
20
Sustainability: Outstanding Claims Liability
Actuarial strain: 0.6% increase in the OCL Social rehabilitation - Care ($220m):
Influenceable strain ($396m) Non-serious injury ($0m)
Changes in the OCL in areas where management action could improve client outcomes and/or • Total payments in the September 2022 quarter were 26.3% higher than expected.
the cost of achieving those outcomes, leading to reduced costs for levy payers and taxpayers. o 38.2% higher active claims than expected across all accident years, but in
particular for 2021.
Weekly compensation ($86m):
o 8.7% lower than expected average payment per claim.
• Average payment per claim and number of claims were lower than expected in the
quarter. However both are exhibiting an upward (increasing) trend. Furthermore, • Attendant care hours have been growing since March 2020.
rehabilitation rates for accidents that occurred in the last three years indicate clients are
staying on longer than expected. The December 2022 OCL strain is largely driven by • In the three years to March 2020, the growth was stable at about 2% per annum.
poor rehabilitation rates. • Care hours then grew 9% from March 2020 to June 2021 and then a further 19% in the
• Overall payments were 2.3% under expected in the quarter to September 2022. Largely year to June 2022. An OCL strain could result if care hours continue to grow through to
driven by lower payments than expected for new accidents (occurred this year). the June 2023 OCL valuation.
• Claim numbers are 1.1% below expected. However this was driven by new accidents in • The higher-than-expected number of active claims and overall payments were both partly
the first quarter being 7.9% below expected. The number of active claims with an driven by backdated non-acute rehabilitation (NAR) active claims and payments in the
accident date prior to July 2022 continued to be higher than expected due to quarter to March 2022. Both number of active claims and overall payments are expected
deteriorating rates of rehabilitation. When accidents from July 2022 are excluded, the to gradually drop back, close to pre-March 2022 quarter levels as these wash through.
number of claims were actually 1% higher than expected. The number of active claims • In addition to NAR, significant backdated Integrated Home and Community Support
for accidents in 2021 were 7% higher than expected. (IHCS) active claims and payments processed in the quarter to September 2022 also led
o The average payment per claim was 1.2% below expected. This was largely to the higher-than-expected results for both claim volumes and total payments.
due to accidents that occurred between 2018 and 2022. If we were to exclude
Serious injury ($220m)
accidents that occurred from 2018 onwards, the average payment per claim
was 1.2% more than expected. • Overall payments were close to expectations. The key drivers are:
Sensitive claims ($31m): o Attendant care: Payments were 4.3% higher than expected, with clients using
other types of care where contracted care is unavailable. Backdated payments
• Overall payments were 11.5% higher in the quarter to September 2022 than expected, mentioned earlier are also impacting.
mostly from earlier accident years (pre-2017). This is made up of claim volumes (0.4%)
and average payments per claim (11.0%) higher than expectations. o Residential care: Payments were 8.7% higher than expected, with higher average
costs per claim and clients unable to get contracted care instead. Early discharge
• Once additional capacity in the provider sector is created, demand for services is also of elderly clients from hospitals is also leading to a rise in residential care stays.
likely to increase. This will result in further strain on the OCL; it is unclear at this stage
whether that will be temporary or long-term. o Total care hours were 2.1% higher than expected. This was mainly driven by
non-contracted care.
Other payment types ($57m)
• The number of new injuries has been significantly below expected since the initial COVID-
• $32m is for hearing loss. The major driver was 11% higher-than-expected active claims 19 restrictions began in March 2020. There are delays in identifying potential serious
in the September quarter. injury claims. We expect that once this is resolved the number of new serious injuries will
be closer to expectations.
Non-influenceable release ($90m)

This release is due to lower mortality among serious injuries than were expected for serious
injuries in social rehabilitation, the majority is related to care.
21
Sustainability: Funding sufficiency
FUNDING SUFFICIENCY LEVIED AND NON-LEVIED FUNDING RATIOS
Earners' portion of Treatment

Work Motor Vehicle Earners’
Non-Earners' portion of
Non-Earners’ – Post 2001 Funding Ratio Target
New year claims costs gap – Levy year 2022/23
Injury - pre and post 1999 Treatment Injury - post 2001
Levy and appropriation revenue in a year should be at a level to
cover the lifetime costs of new claims incurred in that year. Any gap
between expected revenue and cost, by Account, is known as the
new year’s claims cost gap.
136.6% There is a shortfall in levy revenue to the new year claims costs for
117.1%
all levied accounts. Despite being currently overfunded, this results
136.2%
in a faster than desired downward trajectory of the funding ratios.
104.8%
132.4% Simplistically either levies need to increase, claims costs need to
126.1% reduce, or both.
91.7% NEW YEAR CLAIMS COST GAP As at 31

102.3%
SURPLUS / (SHORTFALL) 8 December 2022
69.2% Motor Vehicle ($347m)

82.0%
77.3% 65.5% Work ($298m)
Earners’ ($560m)
Treatment Injury Earners’ ($112m)

2018/19 2019/20 2020/21 2021/22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 2022/23
Budget Non-Earners’ including Treatment Injury
$92m
Non-Earners’ 7
Total ($1,225m)
7 The
8 The
Non-Earner’s including Treatment Injury Non-Earners’ is based on 30 June 2021 assumptions.
difference, by Account, between levy and appropriations and the lifetime cost of claims in the 2021/22 financial year.
22
Organisational Capability: People
Employee net promoter score +11 Improving +12 A +10 +10
Proportion of ACC staff who identify as Māori 13.3% Improving 13% G 12.6% 12.6%
Proportion of ACC staff who identify as having a disability 14.0% Stable 15% A 14.2% 14.2%
Total recordable injury frequency rate 2.7 Deteriorating <3.5 A 2.2 2.0
Lost-time injury frequency rate 2.3 Deteriorating <2.1 A 2.0 1.8
Employee engagement Diversity and Inclusion
• November Pulse survey results were encouraging, with participation continuing to be • The new Equity, Diversity and Belonging (EDB) plan sets new aspirations and areas
strong at 86% of all our people, and eNPS stable, increasing from +10 to +11. of focus for EDB at ACC and seeks to identify more future focused and effective
strategies for EDB generally at ACC.
• Across most questions, minor changes occurred, with only one significant decrease "I
can access the right information at the right time to do my job" decreasing by 0.1 to 3.72. • A key programme of work flowing from the new plan is focused on our Pay Gap
• Action planning based on the Pulse results will begin in January 2023, both at actions. We released ACC Pay Gaps – report and action plan in December 2022.
an organisation level via the Executive and within teams.
23
Organisational Capability: People
Lost Time Injuries Other Recordable Injuries TRIFR TRIFR Target LTIFR LTIFR Target
Health, Safety and Wellbeing (12 Months) (12 Months) (12 Months) (12 Months)
5
• There were seven recordable injuries this quarter, of which five were
lost time.
• Stress incidents dropped significantly in December. This is consistent
with the general pattern of lower stress incidents being reported each 3.5
year in December and can be attributed to the holiday period.
• Overall, there was a much lower count of work-related stress incidents
2.7
in 2022. Given the consistency across the months, this is a positive
sign of a healthier workplace. 2.3
2.1
0
Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23
NUMBER OF WORK RELATED STRESS INCIDENTS (REPORTED: 01/07/2021 – 31/12/2022)

25
21
20
20
NUMBER OF INCIDENTS
15 14
10
10
8
6
6
5
5
3
0
24
Organisational Capability: Information
2022/23 FULL YEAR FULL YEAR 2022/23 2021/22
MEASURE TREND
The number of category 3, 4 or 5 privacy breaches and near misses 3 Deteriorating

<3
No Category 5
R 1 6
• In the second quarter, 162 breaches were reported. Two breaches were at level three,
and were historic relating to employee browsing, seven were level 2 and 151 were level NUMBER OF PRIVACY BREACHES OR NEAR MISSES
1. We have wow exceeded our annual KPI of <3 category 3-5 breaches, with a total of
80 8
3 after the second quarter.
70 7
• This quarter there have been 345 overall privacy incidents reported: 162 breaches, 63
YTD BREACHES
near misses, 40 non-personal data loss, 37 other-party data loss, 6 supplier error, four
MONTHLY BREACHES
60 6
incidents evaluated as ‘non-events’ and 33 good saves logged.*
50 5
• To date, 75% of the independent review actions have been completed. Three were
closed over December, the remaining 25% are all on-track, with just one yet to start. 40 4
* At the time of reporting, the above data includes open incidents which are still being investigated and the final figures 30 3
may change.
20 2
10 1
Privacy Breaches 2022/23 2021/22
0 0
2022/23 1 2021/22 6 IMPACT LEVEL 1 2 3 4 5 Max 3 & 4 FY 3 – 5 YTD
Historic Breaches reported Historic Breaches reported

2* 0
during 2022/23 during 2021/22
Total 3 Total 6
*Historic breaches reported in 2022/23: 1 occurred in 2018/19 and 1 in 2012
Organisational Capability: Technology

2022/23 FULL YEAR FULL YEAR 2022/23 2021/22
MEASURE TREND
Overall operational system availability 99.8% Stable 99.5% G 99.9% 99.9%
25
ICIP: Integrated Change Investment Portfolio
The following is a summary of the status of our integrated change investment portfolio expenditure and benefit measures
MEASURE 2022/23 TARGET STATUS 2022/23 2021/22 PAGE

Q2 ACTUAL Q1 ACTUAL ACTUAL REFERENCE
Client net trust score +18 +28 R +15 +19 9
Provider net trust score -33 -20 R -35 -35 10
Business net trust score -34 -17 R -36 -24 10
Claims processed per FTE 474 566 R 476 472 16
Average Weekly Compensation days paid

105.8 days
(-8.4 days)
104 Days
(-6.6 days)
R 107.4 days
(-10.0 days)
107.7 Days
(-10.3 days)
13
Employee net promoter score +11 +12 A +10 +10 23
LIFE TO DATE LIFE TO DATE LIFE TO DATE LIFE TO DATE WHOLE LIFE
$m STATUS
2022/23 Q2 ACTUAL BUDGET 2022/23 Q1 ACTUAL JUNE 2022 BUDGET
Total cost 590 593 G 587 583 669
26
Appendices: Appendix 1: Financial statements to 31 December 2022
Statement of financial performance
$m YEAR-TO-DATE FULL YEAR 2022/23
ACTUAL9 BUDGET PRIOR YEAR ACTUAL BUDGET
Levy revenue 2,890 2,793 2,563 5,655
Interest, dividend and rental income 10 914 583 589 1,168
NZIIS Appropriations 8 12 2 48
Other income - - - -
Total income 3,812 3,388 3,155 6,871
Treatment 1,307 1,404 1,118 2,794

Rehabilitation 635 665 570 1,326
Compensation 1,135 1,153 1,021 2,312
Miscellaneous 20 31 18 63
Total claims paid 3,097 3,253 2,727 6,495
Expected increase in OCL 1,142 1,339 691 3,507

Impact on other factors on OCL 306 - 913 -
Expected increase in URL (752) (877) (815) 114
OCL and URL movement 696 462 (789) 3,621
Investment management costs (excl. external management fees) 16 14 14 33

Injury prevention costs 39 49 42 100
Enterprise change programme 35 42 56 82
Depreciation & amortisation 24 24 23 46
Core operating costs 273 276 247 546
NZIIS costs 8 12 2 48
Total operating costs 395 417 384 855
Total expenditure 4,188 4,132 3,900 10,971
Performance from insurance operations (306) (744) (745) (4,100)
Net gains / (loss) on investments (incl. external management fees) (306) 487 419 979
Net gains / (loss) from changes in discount and inflation rates on OCL 1,421 - (3,189) -
External factors 1,115 487 (2,770) 979
Surplus / (deficit) 739 (257) (3,515) (3,121)
9 Actual – OCL adjustment is based on the full year valuation at 30 June 2022 and using the actual discount rate at 31 December 2022.
27
10Investment returns are budgeted at between 4.01% - 5.39% for each Account. ACC chooses to incur many of the market risk exposures
through its investment portfolios, either because they provide a natural offset to risks inherent in the outstanding claims l iability, or because it
expects to enhance returns through prudent exposure to these risks.
Work account
$m YEAR-TO-DATE 2022/23
ACTUAL BUDGET PRIOR YEAR ACTUAL BUDGET
Levy Revenue 501 433 422 877
Interest, dividend and rental income 207 124 131 252
Other income - - 1 -
Total Income 708 557 554 1,129
Total claims paid 538 580 488 1,156
Increase / (decrease) in outstanding claims liability 140 122 62 357
Movement in unexpired risk liability (236) (295) (249) 41
Total expenditure 546 513 416 1,767
Performance from Insurance Operations 162 44 138 (638)
Net gains / (loss) from changes in discount and inflation rates on OCL 179 - (279) -
External factors 70 106 (238) 211
Surplus / (Deficit) 232 150 (100) (427)
Motor Vehicle account

Levy Revenue 232 236 233 475
Total Income 485 396 417 795
Total claims paid 379 420 338 841
Movement in unexpired risk liability (6) 11 27 21
Performance from Insurance Operations (196) (400) (361) (999)
Surplus / (Deficit) 81 (267) (1,189) (732)
28
Earners' Account
Levy Revenue 1,081 1,053 915 2,154
Total Income 1,317 1,202 1,057 2,452
Total claims paid 1,164 1,212 1,005 2,419
Movement in unexpired risk liability (522) (593) (593) 52
Total expenditure 1,304 1,175 995 3,753
Performance from Insurance Operations 13 27 62 (1,301)
Surplus / (Deficit) 259 152 (278) (1,051)
Non-Earners' Account
Levy Revenue 899 896 830 1,793
Total Income 1,012 974 893 1,948
Total claims paid 834 854 745 1,708
Movement in unexpired risk liability - - - -
Total expenditure 1,098 1,195 1,130 2,586
Surplus / (Deficit) 207 (157) (1,009) (507)
29
Treatment Injury Account
Levy Revenue 177 175 163 356
Total Income 282 247 232 499
Total claims paid 182 187 151 371
Movement in unexpired risk liability - - - -
Surplus / (Deficit) (40) (135) (939) (404)
30
Statement of financial position
$m AS AT 31 DECEMBER 2022 FULL YEAR 2021/22 FULL YEAR 2022/23
ACTUAL BUDGET ACTUAL BUDGET

Account reserves
Work 2,807 2,016 2,574 1,440
Motor Vehicle 1,181 (1,032) 1,100 (1,497)
Earners’ (1,290) (2,372) (5,976) (3,574)
Non-Earners’ (5,769) (8,009) (1,550) (8,360)
Treatment Injury (2,228) (3,334) (2,187) (3,603)
Total reserves (deficit) (5,299) (12,731) (6,039) (15,594)
Assets
Cash and cash equivalents 189 190 150 190
Receivables 382 467 695 80
Accrued levy revenue 1,056 1,068 2,895 3,187
Investments 45,233 50,108 45,824 49,103
Derivative financial instruments 1,285 - 1,132 287
Property, plant and equipment 31 21 28 13
Intangible assets 82 96 95 96
Total assets 48,258 51,950 50,819 52,956
Liabilities
Payables and accrued liabilities 291 989 1,220 197
Derivative financial instruments 1,413 229 1,522 -
Unearned levy liability 972 936 2,510 2,668
Unexpired risk liability 582 732 1,334 1,722
Outstanding claims liability 50,299 61,795 50,272 63,963
Total liabilities 53,557 64,681 56,858 68,550
Net assets (liabilities) (5,299) (12,731) (6,039) (15,594)
$m ACTUAL
Investments 45,233
Short-term deposits 166
Net derivatives (128)
Investment receivables 60
Investment payables (62)
Total funds under management 45,269
31
Funding ratios
• The funding ratios represents the extent to which applicable net assets cover the value of the fully funded portion of the OCL (excluding risk margin) for each account
• It is presented as a percentage and calculated by dividing total assets, less payables, accrued liabilities, provisions and unearned levy liability by the outstanding claims liability (including additional
liability for work-related gradual process claims not yet made) excluding any risk margin. The funding ratio for the Work Account excludes those claims, and equivalent assets, funded through the
Accredited Employer Programme.
$m AS AT 31 DECEMBER 2022 AS AT 30 JUNE 2023 AS AT 30 JUNE 2022
ACTUAL BUDGET TARGET FORECAST BUDGET ACTUAL
Levied Accounts:
Work
Including gradual process claims incurred but not yet made 136.2% 119.9% 100.0% 133.9% 117.1% 135.8%
Motor Vehicle 126.1% 107.8% 100.0% 124.4% 104.8% 125.2%
Earners’ 102.3% 95.3% 100.0% 99.0% 91.7% 104.6%
Non-levied Accounts:
Non-Earners’
Fully funded portion 77.3% 66.6% 100.0% 76.2% 65.5% 76.1%
Treatment Injury
Non-Earners’ fully funded portion 82.0% 70.1% 100.0% 80.9% 69.0% 81.2%
Earners’ portion 132.4% 138.5% 100.0% 131.1% 137.0% 137.4%
Outstanding claims liability (OCL)

$m AS AT 31 DECEMBER 2022 FULL YEAR 2022/23

Opening balance – 1 July 2022 (50,272) (60,456) (55,387) (60,456)
Movement due to:

Expected increase (1,142) (1,339) (691) (3,507)
Impact of claims experience and modelling (306) - (913) -
Impact of change due to other factors - - - -
(Increase) / decrease in OCL (1,448) (1,339) (1,604) (3,507)
Impact of discount rate assumptions 3,076 - (474) -
Impact of change in inflation assumptions 11 (1,427) - (2,496) -
Impact of adjustments due to key inflation indicators (228) - (219) -
Impact of economic assumptions and other factors 1,421 - (3,189) -
Closing balance (50,299) (61,795) (60,180) (63,963)
Long-term discount rate 4.30 % 4.30% 4.30% 4.30 %
Single effective discount rate 4.60 % 3.21% 3.04% 3.21 %
11The impact of adjustments due to key inflation indicators include the Labour Cost Index, Consumer 32
Price Index and Average Weekly Earnings changing in a manner not predicted by the previous valuation.
Statement of cash flows

FULL YEAR
$m AS AT 31 DECEMBER 2022
2022/23
Cash flows from operating activities
Cash was provided from:
Levy revenue 3,149 3,028 2,873 5,582
Investment income 1,012 584 583 1,172
Sundry income 9 - - 1
Goods and services tax (net) - - 31 -
4,170 3,612 3,487 6,755
Cash was applied to:
Payments to injured persons, suppliers and employees 3,535 3,649 2,962 7,295
Goods and services tax (net) 19 7 - 2
3,554 3,656 2,962 7,297
Net cash movement from operating activities 616 (44) 525 (542)
Net cash flows from investment activities
Cash was provided and applied to:
Net purchase and sale of investments (564) 58 (139) 574
Net purchase and sale of property, plant & equipment, and intangible assets (13) (14) (9) (32)
Net cash movement from investing activities (577) 44 (148) 542
Net increase in cash and cash equivalents 39 - 377 -
Cash and cash equivalents – opening balance 150 190 131 190
Cash and cash equivalents – closing balance 189 190 508 190
33
Appendices: Appendix 2: Additional financial information
Net Assets / (Liabilities) to funding gap reconciliation – Forecast 30 June 2023
$m Motor Vehicle Work Earners’ Treatment Injury Non-Earners' Total
Net Assets/(Liabilities) 1,023 2,413 (2,261) (2,340) (5,950) (7,114)
Remove PAYG12 portion of OCL - - - 1,251 3,485 4,736
Include WRGP IBNR13 off balance sheet OCL - (1,048) - - - (1,048)
Remove URL 213 385 812 - - 1,410
Remove risk margin 1,457 913 1,338 816 898 5,423
Funding gap surplus / (shortfall) 2,693 2,664 (111) (272) (1,567) 3,406
Funding ratio 124.4% 133.9% 99.0% 95.3% 76.2%
12
13
Pay As You Go
Work related gradual process claims incurred but not reported
34
Appendices: Appendix 2: Additional financial information
Funding ratios Work Account Earners’ Account
• The funding ratios are based on updated

financial results and forecasts as at 31
December 2022 and the approved levy rates
announced in December 2021.
Funding ratio trajectory
• There is a shortfall in levy revenue to the new

year claims costs for all levied accounts.
• Despite being currently overfunded, this results in
a faster than desired downward trajectory of the
ratios.
Motor Vehicle Account Non-Earners' Account
• The Earners’ account is now forecast to be below
target by 2022/23. Forecasts suggest the Work
and Motor Vehicle accounts will remain above
target at the end of 2026/27.
Actual Funding Policy Target Forecast – No Levy or appropriation Increase/Decrease Forecast – Levy or appropriation Increase/Decrease
35
Appendices: Appendix 3: Additional measures
Asset performance measures
MEASURE MOST RECENT 2021/22 YTD FULL YEAR OUTLOOK

RESULT ACTUAL ACTUAL TARGET
Utilisation: Percentage of ACC staff utilising mobile computer hardware technology (Quarterly) December 2022 100% 100% 85% G
Utilisation: Percentage of active ACC computer devices that are within the accepted lifecycle target. (Quarterly) December 2022 89% 90% 75% G
Condition: Number of critical faults for key ACC systems December 2022 1 0 <5 G
ICT
Condition: Percentage key systems with a condition rating of Good or Excellent (Quarterly) December 2022 84% 84% >80% G
Functionality: Total operational ICT spend per full-time equivalent (FTE) December 2022 $24,917 $25,616 $30,700 G
Availability: Percentage of time key applications and networks are available to perform required functions December 2022 99.9% 99.8% 99.5% G
Utilisation: Square metres (m 2) of leased area per FTE December 2022 12.7m2 12.43m2
12 - 16 m2
/ FTE
G
PROPERTY
Condition: Percentage of total leased area with a current code compliance certificate/ building warrant of fitness December 2022 100% 100% 100% G
Functionality: Percentage of total leased area that meets or exceeds the ACC security standards December 2022 100% 100% 100% G
36
Appendices: Appendix 4: Organisational Risk
The nine entity risks rated High for the period to 31 December 2022 are listed below. Many of the risks are important to delivering our planned initiatives. Most
actions are scheduled to be completed over 2022/23; some will be completed in later years. As at the start of January 2023, the scope and nature of some of the
management activities remains under review and subject to change.
Risk Key Management activity
Customer outcomes
If we do not define and measure outcomes effectively, we may not

fulfil our obligations under Te Tiriti o Waitangi and may fail to meet the • Develop and implement a health outcomes framework as a tool for identifying and structuring the health outcomes that
current and future needs of our customers (injured people, levy matter for our customers.
payers, safer communities) in the context of ACC’s strategic
outcomes: • Develop a suite of measures that reflect customer outcomes and experience, that are adopted as core ACC metrics.
• Reduce the incidence and severity of injury.

• Rehabilitate injured people more effectively.
• New Zealand has an affordable and sustainable Scheme.
Māori access and outcomes
• Increase the number and range of kaupapa Māori services available to communities and injured clients.
We fail to make progress in implementing initiatives that are • Increase cultural intelligence and capability across ACC.
meaningful, scalable or timely enough to materially improve Scheme
access, outcomes and engagement with Māori. • Create a Māori-specific injury prevention investment portfolio.
• Develop a strategy and frameworks to support Māori data collection and reporting to drive performance for Māori.
Claims cost management
• Educate customers in key industries through Recovery at Work campaign about the benefits of their employees recovering
We do not adequately anticipate, monitor and respond to claims cost at work.
performance trends resulting in pressures on levy rates. • Scale Escalated Care Pathways programme to help improve rehabilitation measures.
• Sensitive Claims Evolution programme to strengthen support for the recovery of our clients.
Injury Prevention Impact
If we do not make informed strategic decisions and effectively deliver, • Investigate ways to demonstrate and measure Māori injury prevention.
we will not be able to sustainably scale to reduce the incidence and • Set long-term strategic direction as part of ACC’s overall strategic goals.
severity of injuries for people across Aotearoa. • Health Sector Reform Engagement Plan.
37
Appendices: Appendix 4: Organisational Risk
Risk Key Management activity
Benefits
• Educate customers in key industries through Recovery at Work campaign about the benefits of their employees
recovering at work.
• Scale Escalated Care Pathways programme to help improve rehabilitation measures.
We fail to effectively identify and/or realise the short- and long-term outcomes • Review the potential known impacts of the NZ Income Insurance Scheme (NZIIS) on the Enterprise Change
and benefits of our Transformation investment. Authority and/or Enterprise Change Portfolio.
• Review resource rationalisation opportunities as NZIIS gains momentum.
• Develop a comprehensive whole-of-ACC view of its customer experience with an initial focus on a system view of
rehabilitation. This is expected to improve ACC’s ability to prioritise its improvement efforts.
People and Culture (Including Key Person Risk)
• Inclusive leadership programme.

• Enhance current hybrid working practices.
• Develop collateral that clearly sets out employee benefits and ensure visibility of our benefits package.
We do not have the organisational leadership, capability or capacity in our • Develop a remuneration and benefits approach that is fit for purpose to attract the right talent/capabilities in the
workforce to effectively deliver business performance and transformative right markets to achieve our organisational performance outcomes.
change. • Analyse pay data and develop actions to close pay gaps and lower actual and/or perceived pay inequities.
• Review process for ensuring candidates have a “right to work” in Aotearoa New Zealand.
• Build and implement a new “dual-engine” operating model for the People and Culture business group that better
enables us to deliver what is needed today while also planning for what’s needed tomorrow.
Privacy
• Address recommendations arising from the independent review and monitor the associated actions.
We fail to protect personal information.
• Reshape the Privacy team and its strategy.
New Zealand Income Insurance Scheme (NZIIS) Delivery
• Develop a decision framework to define key decision rights in the design and implementation.
• Embed a privacy by design approach.
• Develop and implement a workforce strategy.
NZIIS is not delivered to the Government’s intent. • Develop co-ordinated delivery approach and planning across delivery partners.
• Design a blueprint for a solution that achieves the intent of policy and legislation.
• Develop a communications and engagement strategy to ensure that stakeholders, partners, and governance
forums are identified, managed, and effectively engaged on an ongoing basis.
Cyber Security
• Review ACC’s cybersecurity maturity.

We do not take all reasonable steps to protect our systems and information from
• Review and enhance ACC’s phishing awareness programme.
cyber security threats.
• Develop a new training and awareness map.
38
Appendices: Appendix 5: Service Agreement Initiatives
Injury Prevention
What we want to achieve What we will have delivered by 30 June 2023 Status
We will use data, insights and evidence to understand the root causes of injury to better target and focus interventions, maximising returns from investment. On track
We use analytics to target our injury
prevention investments and increase the We will explore and review appropriate measurement of our injury prevention investment considering our evolving investment approach. On track
impact of our efforts
We will continue to make Treatment Safety information more accessible, through the Health Quality and Safety Commission online health system quality dashboard and via
On track
other online channels.
We will have continued to evolve our existing injury prevention partnerships while developing new partnerships where appropriate. Together with our partners, we will have
On track
designed and delivered initiatives in the areas that have the greatest impact on reducing injuries.
We increase injury prevention effectiveness
We will have continued to evolve our injury prevention partnership with WorkSafe NZ to design and deliver initiatives that have the greatest impact on reducing injuries in the
by partnering with capable, like-minded On track
Aotearoa New Zealand workplace.
organisations
We will continue to work alongside the Joint Venture Business Unit agencies to lead and support the delivery of Te Aorerekura actions in the elimination of family and sexual
On track
violence.
We will continue to increase our investment in approaches designed by Māori, for Māori to injury prevention that will improve wellbeing outcomes and help reduce the
On track
incidence and severity of injury for Māori.
We will work with communities to develop and deploy effective injury prevention programmes to a cross section of the Aotearoa New Zealand population using a broad set of
On track
We extend our reach by working closely with channels.
communities
ACC will continue to deliver an injury prevention grants and subsidies programme investing in businesses to stimulate the adoption of initiatives to reduce harm in
On track
New Zealand workplaces.
We will support Healthy Aging in Aoteoroa New Zealand with a specific focus on Falls Prevention. On track
Our injury prevention investments contribute

We will apply an investment approach that balances benefits, costs and risks and, where appropriate, assess the social and economic returns from our investment. On track
to a reduction in the OCL
We will use Preventable, (our national behaviour change programme known to the public as 'Have a hmmm') to constructively challenge Aotearoa New Zealand to take
On track
action to avoid injury and keep themselves and their whānau, friends and community safe and well.
We design for New Zealanders, creating
We will consider the customer, not just the injury, as the basis for investment. Our investment in prevention will be based on a range of factors that reduce the risk of injury
sustained behaviour changes and large scale, On track
and promote factors that protect against the risk of harm.
long-term, sustainable societal change
We will establish a Te Tiriti-led primary prevention system to protect the wellbeing of children, tamariki and young people. We will enable community approaches and shifts
On track
across the system to influence attitudes and change behaviour at scale.
Customer Outcomes And Experience

We will have implemented the changes required to support the Accident Compensation (Maternal Birth Injury and other Matters) Amendment Bill. On track
We will have improved employers’ ability to engage in the recovery of workers by providing access to claims information and resources. On track
We will have enhanced customers' recovery journeys by matching customers with teams, individuals, services and pathways based on capability and capacity. Achieved
We deliver high quality and effective
treatment and rehabilitation services for our
clients to enable a return to independence We will be developing a more sustainable service to support a better experience for victims of sexual violence. On track
The Māori Health Outcome and Measurement Framework is progressing with the goal to inform and align with ACC’s whānau centred Kaupapa Māori Health Service
On track
and delivery.
We have tested the capture of a global Patient Reported Outcome Measures (PROMs) and are ready to design for the capture of PROMs at scale for appropriate clients. On track
39
Customer Outcomes And Experience Cont.
We will have redesigned the Accredited Employer Programme to enable a streamlined experience for participating employers, ensuring improved experience and
On track
rehabilitation outcomes for their employees.
We partner with providers, businesses,
We will have improved business customer experience through the provision of digital notifications, targeted campaign communications and a focus on recovery at work. We
government agencies, iwi, hapū, whānau and On track
will have transitioned most of our business customer experience onto digital channels, with a focus on customer experience.
communities to enable improved value for our
customers
We are testing and enabling clinical pathways which, at scale will service most of the medium to high complexity clients. On track
To deliver better outcomes for patients, providers, and ACC we have engaged with the health sector and increased value for money in our healthcare spend. On track
We will have enabled providers access to additional functionality through the Provider Hub and continued to integrate with the Health System allowing providers to interact
On track
with us through their technology of choice.
We will have delivered the key components (provider portal and provider registry) to enable transition from our legacy health provider payment system. On track
We will have simplified our transactional engagements with businesses to provide more time for them to engage in value-add activities. On track
We will have improved access, usage and straight through automation of MyACC, creating an enhanced digital experience for clients. On track
We actively make it easier for our customers
and others to work with us
Through public engagement programmes, we will increase awareness in ACC, build trust, and demonstrate the value we offer to Aotearoa New Zealand and our customers. On track
We will have developed and implemented a new organisational strategy that defines our strategic intentions now and into the future that supports our decision making and
On track
the way we work with our stakeholders and customers and is developed and delivered in a manner consistent with the principles of Te Tiriti o Waitangi.
We will deliver a high level of service through our Contact Centre, with a focus on first call resolution and customer experience. On track
We will be developing a Pacific Peoples strategy and implementation plan. On track
We will have improved the experience and outcomes for Māori clients using Hāpai case management. On track
We will be monitoring and reporting on a vital set of organisational Māori outcome measures. On track
We will be implementing the Māori Outcomes Framework to drive ACC’s performance toward achieving equitable outcomes for Māori. On track
We achieve improved access, experiences
and outcomes for Māori We will have established Māori client and Pacific Peoples knowledge expert panels to enable a customer focus for ACC. On track
We will be developing and delivering a strong strategic iwi Māori engagement function externally while maintaining internal relationships to join up other iwi engagement
On track
programmes across ACC.
We will be refreshing Whāia Te Tika to align with the new organisational strategy being developed in a manner consistent with the principles of Te Tiriti o Waitangi. On track
40
Sustainability
We carefully consider the costs of the services

We will continue to refine our performance management approach to ensure we manage the dual focus on the costs and outcomes of the services we provide while increasing
we offer to achieve the most appropriate client On track
our overall effectiveness.
outcomes and best value for our customers
We will continue to develop our understanding of which drivers of cost and volume changes we can most influence. This will inform the actions we can take to improve customer
We manage cost and liability growth On track
and financial outcomes.
We will continue to manage our investments, seeking to outperform investment return benchmarks over the long term while minimising unexpected mismatches between
On track
We maintain investment performance above investment income and growth in the outstanding claims liability.
benchmarks to reduce the impact on levy
payers We will continue to invest with purpose through the Health and Safety Impact Fund (to improve health, safety and wellbeing in Aotearoa New Zealand) and the Climate Change
On track
Impact Fund (supporting Aotearoa New Zealand’s transition to a lower carbon economy).
We are committed to New Zealand’s We will continue to deliver on our public commitments to Aotearoa New Zealand’s environmental goals. On track
environmental goals, including in the net zero
emissions target and achieving carbon
We are tracking and reporting on our progress to reduce carbon emissions. On track
neutrality
People
We will support ACC’s Whāia te Tika strategy through building the cultural capability of our leaders and people and increasing the representation of Māori employees within our
On track
Our workforce reflects New Zealand’s diversity workforce.
We will have developed and be commencing implementation of a new five-year strategy and approach for Diversity and Inclusion at ACC. On track
We have highly motivated capable leaders We will have updated our core leadership development suite. On track
We ensure the work we do and direct is We will continue to mature our Health, Safety and Wellbeing culture by progressing actions in our 2019-2022 Health, Safety and Wellbeing strategy and will develop a refreshed On track
healthy and safe for all involved, and the Health, Safety and Wellbeing strategy for the period beyond 2022.
wellbeing of our people is supported
We will continue to mature our Health, Safety and Wellbeing culture by developing and implementing an updated Health, Safety and Wellbeing strategy. On track
We will support our people to adopt new capabilities, technology and ways of working to deliver our key organisational initiatives. On track
Our people are capable and proud to be part of
ACC
We will continue to improve employee engagement through initiatives that reinforce inclusion, development, wellbeing and our ACC Purpose. On track
Our organisational design and our practices We will continue to implement key components of our new Human Capital Management system to streamline our people processes. Off track 14
facilitate high performance now and into the
future We will continue to mature our ability to align our change activity to our organisation’s change capacity. Off track 15
14. A prioritised remediation and stabilisation plan for HCM has now been agreed and additional resource released to help achieve the plan. This plan will take a
number of months to implement so it is likely this initiative will remain off-track for the remainder of the year. 41
15. New reporting to QBR and Value Streams has been introduced to help provide visibility on change capacity. Further work is underway to improve reporting,
visibility and awareness in advance of decision making. Timeframe is the end of the year for increased awareness and visibility in decision making.
Information
We are fair, open and transparent, and committed to making information available under the principles of the Official Information Act 1982, unless there is a good reason to
We are custodians of customer information On track
withhold it.
We ensure the work we do and direct is

We will have further protected our customers’ information and privacy by rolling out important updates to our systems, and invested to ensure our systems have the capacity
healthy and safe for all involved, and the On track
to meet predicted future demands.
wellbeing of our people is supported
We will have supported and adopted NZ Government data and technology standards to better enable flow of data for joined up services. On track
We enable the appropriate sharing of
information across government We will have supported and contributed to open government data standards and driven to improve access and appropriate sharing of information to enrich data and
On track
analytics to inform and strengthen decision making.
We use our organisation-wide analytical

strength to make effective investment We will have generated value from ACC's cloud data platform to enable enterprise decision making. On track
decisions
Technology
We maintain safe, secure and stable
We will have continued to maintain the stability and security of our information technology by implementing an appropriate maintenance and security programme. On track
information technology
We will continue to maintain our mobile hardware and software capability to better enable our people to serve our customers with ease and minimal business disruption. On track
Our technology empowers our people
We continue to improve our organisational capability through new modern technologies. On track
We will have continued to enhance our digital environment allowing us to:

- automate manual tasks and processes to remove friction and improve the quality and timeliness of payments, data and services
Our technology enables our digital aspirations On track
- increase the range of self-service options so that our customers can choose the best options to suit their needs
- work collaboratively with the health sector to ensure that our solutions integrate seamlessly with their ways of working.
We will have continued to develop our adaptive technology environment by:

We create and maintain an adaptive
- implementing a range of modern technologies and innovation, supporting ACC to better manage performance and customer service delivery On track
technology environment
- reducing legacy and customisation of our core systems to provide more flexibility and agility.
42

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Second Quarterly Report 2022 2023

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December 2022

Second Quarterly Report 2022/23

Appendix 1: Financial statements 27

Appendix 3: Additional measures 36

Rehabilitation: Non-Weekly Compensation 15 The quarterly report details:

Organisational health and capability 23 Indicator Full Year Outlook

Information and Technology 25

R Low probability of meeting target at year end.

YTD FULL YEAR 2022/23 2021/22

Client net trust score +18 Improving +28 R +15 +19

Provider net trust score -33 Improving -20 R -35 -35

Business net trust score -34 Improving -17 R -36 -24

YTD FULL YEAR 2022/23 2021/22

Employee net promoter score +11 Improving +12 A +10 +10

Number of category 3, 4 and 5 <3

Overall operational system availability 99.8% Stable 99.5% G 99.8% 99.9%

Return to independence for OUTLOOK

CUSTOMER OUTCOMES & EXPERIENCE

0.20 0.20 TREND TREND

ORGANISATIONAL HEALTH AND CAPABILITY INTENTIONS

1,393 Deteriorating Deteriorating

Actuarial Movement OUTLOOK The number of category 3, 4 and 5 OUTLOOK

privacy breaches and near misses

Investment in Kaupapa Māori programmes $3.0m Stable $7m G $1.5m $7m

Rate of serious injury (inc. fatal):

Rate of serious injury (inc. fatal):

Return on investment (ROI): Rate of serious injury:

Public trust and confidence 54% Improving 58% A 52%

Client net trust score +18 Improving +28 R +15 +19

Māori lodgement ratio 0.82 Stable 0.83 G 0.82 0.82

Provider net trust score -33 Improving -20 R -35 -35

Business net trust score -34 Improving -17 R -36 -24

Public trust and confidence2: Client Net Trust Score:

MEASURE 2022/23 TREND FULL YEAR FULL YEAR 2022/23 2021/22

Reviews as a percentage of decline decisions 7.5% Stable ≤ 8.5% G 7.4% 7.7%

Review Volumes Actions underway to improve review performance

Average Weekly Compensation days paid

• However, we are starting to see a higher proportion of shorter term WC exits,

2 Claims receiving WC for greater than 365 days. 14

RETURN TO INDEPENDENCE FOR THOSE NOT IN WORKFORCE - 52 WEEK ROLLING

Actuarial movement +0.6% Deteriorating

Administration cost per claim $2,036 Stable $2,0533 G $1,502 $2,715

Claims processed per FTE 474 4 Stable 566 R 476 4 472

Actuarial movement Claims processed per FTE

Total income 4,040 3,388 G 6,871

Surplus / (deficit) from insurance Operating costs

Net (deficit) surplus 739 (257) (3,121)

Weekly compensation 11% (11%) 1,027 1,041 14 1% G 1,564 X7.7

Other compensation (3)% (10%) 107 111 4 4% G 195

Total compensation 9% (11%) 1,135 1,153 18 2% G 1,759

Vocational rehabilitation (25%) (22%) 35 44 9 21% G 92 X4.3

Social rehabilitation 11% (11%) 600 621 21 3% G 921 X22.2

Serious injury 5% (14%) 352 370 18 5% G 582 X33.3

Non-serious injury 18% (7%) 248 250 2 1% G 339 X5.1

Total rehabilitation 8% (11%) 635 665 30 4% G 1,013

Medical treatment 3% (14%) 527 623 96 15% G 956 X2.9

Elective surgery 5% (27%) 274 276 2 1% G 489 X9.1

Other treatments 10% (26%) 146 147 1 1% G 224