What analysis, if any, has ACC undertaken on differences in injury cost profiles between motorcycles of varying engine capacities, and how is this analysis reflected in levy setting?

Answer

Corrected reply: I am advised that ACC links individual claims to its Actuarial Services statistical case estimate and NZ Transport Agency Crash Analysis System (CAS) dataset to understand expected claim cost for different vehicle classes, including difference by engine capacity for motorcycles. I am also advised the CAS dataset is Police recorded information for accidents attended by Police, so represents more severe accidents. The ACC Actuarial Services statistical case estimate produces an expected lifetime claim cost for each accident reported to ACC, based on the entire history of ACC’s accidents. This enables a relative cost to be calculated between vehicle classes. This relative cost is then applied to the base levy (the levy for passenger vehicles) to calculate the cost for each vehicle class. In the 2024 levy consultation, ACC considered injury costs for motorcycles of varying engine capacity through an analysis of the engine capacity boundaries. ACC also completed a relativity analysis, which considers the average lifetime cost of claims within each vehicle class, for both the approved and, if applicable, any proposed engine capacity groupings.