Media speculation that the NZ Government will act to privatise its Accident Compensation Corporation (ACC) monopoly is rising.

A report by Radio New Zealand yesterday said a recently completed interim report by the ACC Stocktake Steering Group includes a proposal to introduce competition to the ACC Work Account.

The Work Account covers workers’ compensation for all employees and the self-employed. Government spokesmen have refused to confirm the report.

The speculation follows moves to reform the ACC after it reported a $NZ4.8 billion ($3.7 billion) loss for 2008/09, on top of a $NZ2.4 billion ($1.9 billion) loss the previous year.

But Insurance Council of New Zealand CEO Chris Ryan told insuranceNEWS.com.au insurers will have to wait for a final report due in June for full details of potential ACC reform.

“The report is yet to be released, and we haven’t seen it,” he said. “But I wouldn’t be surprised if it does contain that proposal.”

Mr Ryan says ICNZ would “cautiously support” a proposal to introduce private competition, which would present a significant opportunity for major Australian-based insurers.