What evidence did Accident Compensation Corporation use, if any, when considering the proposed changes to motorcycle levies, to prove that cc-based pricing is valid?

Answer

I am advised that ACC reviewed the cc bandings as part of the 2024 levy consultation. The changes approved in that consultation were supported by this analysis. ACC’s claim data, matched to NZTA’s Crash Analysis System data, shows a strong correlation between claim costs and cc rating. Claims involving higher cc motorcycles showed substantially higher lifetime costs. Levies charged by ACC are intended to cover the lifetime cost of claims and so cc rating has been used to differentiate levies. ACC advise that while this analysis does not imply causation, the degree of correlation is considered significant when determining relative risk for motorcycle classes.