Objectives

The primary objective of this survey was:

• to measure and provide benchmark ratings to track the intentions of employers regarding workplace accident insurance.

  Other specific objectives of the quantitative research stage are:

• to measure the current level of awareness and knowledge of the ACC reforms among employers;

• to measure the intentions of employers and when, and if, they are likely to act to purchase workplace insurance;

• to gain a better understanding of the sources of information that employers use to gain information regarding the ACC reforms;

• to provide direction to the development of the communications strategy of the Department of Labour;

• to provide benchmark figures that will serve as the basis for tracking and assessment;

• to provide indications of the likely difference in behaviour of employers broken down by urban, provincial, business size and major region samples, and if possible industry type.

Methodology

This report is based on results of a telephone survey of in total 800 experienced rated New Zealand employers.

A random selection of telephone numbers was provided by the ACC which was loaded directly into UMR Insight’s CATI system. The CATI sample management system automatically randomises the telephone numbers provided to interviewers.

Quotas were set by business size for small (0-5 full time equivalent employees), medium (5.5 to 49 full time equivalent employees) and large businesses (50 or more full time equivalent employees). This included a booster sample of 150 large employers. A booster sample was used in order to provide a valid sub-sample of this key audience. The total sample significantly over-represents larger employers so overall results were weighted back to ensure there was no impact on overall results.

For a sample of 650 the margin of error for a 50% figure at the 95% confidence level is plus or minus 3.8%.

For the sub-sample of 150 large employers the margin of error for a 50% figure at the 95% confidence level is plus or minus 7.6%.

Fieldwork was conducted from 3^rd March to 23^rd March 1999 at UMR Insight’s national interview facility in Auckland. There was only light interviewing in the first week and the last week of interviews was required for call-backs to the difficult to reach larger employers.

Respondents were approached at each company on the basis of being the person "who makes the decision on ACC and other insurance related matters".

Telephone interviewing was conducted during standard work hours of 9.00am to 5.00pm unless a call-back appointment was specifically booked for time outside those hours.

Six call-backs were made to initially selected respondents to reduce non response due to unavailability.

Some totals in tables in the attached report will not add to 100% because of rounding.

Overall Findings

• There was 94% declared awareness of the ACC reforms with 61% able to correctly nominate the 1^st July starting date.

  Overall levels of knowledge of the reforms appeared to be stronger amongst the employers than the self employed.

• 63% of employers declared they favoured the reforms with 19% opposed.

• A very high 84% declared that they would be ready to switch to a private sector insurer by 1^st July. This number was well above expectations and does need to be carefully interpreted.

  As noted in the self employed survey report there are always steps to be negotiated before declared intentions in a survey translate into actual behaviour. This is especially the case if complex steps are required to realise the behaviour and if high costs are involved.

  Even more caution is required for the employers than the self employed as the choice given to the employers (while the actual one facing them) does present them with one active, positive option and a more passive option.

  This point is underlined by the finding amongst employers who declared they were not aware of the reforms or who were aware of the reforms but declared they knew not that much or hardly anything about them. 79% still declared that they would be ready to switch to a private sector insurer by 1^st July.

• The information pack has clearly been very effective with employers. There was 90% recall of the pack. Of those who recalled the pack 74% had read or skimmed through it and 9% had kept it.

General Setting

• 66% of employers surveyed declared they used an insurance broker.

• 92% of employers declared they had fire and general insurance, 92% public liability and indemnity insurance, 51% health insurance and 26% key man insurance.

• 41% of employers declared they had a lot or a fair amount of contact with their insurance providers with 58% declaring they had not that much or hardly any contact.

• Amongst those who declared they had a lot or a fair amount of contact 94% declared they were generally satisfied with their personal dealings with 4% dissatisfied.

• There was also a reasonably high value for money rating. Amongst all employers 63% considered they were generally getting value for money for the premiums they pay to insurance companies with 23% considering they were not getting value for money. 14% were unsure or volunteered conditional answers.

Awareness of Reforms

• There was a high 94% declared awareness that changes were being made to ACC.

• 66% of employers aware of the reforms were able to correctly nominate the 1^st July starting date.

• There were respectable levels of declared knowledge about the changes being made to ACC. 11% of employers aware of the reforms declared they knew a lot about the changes, 46% a fair amount with 42% declaring they knew not that much or hardly anything.

• Amongst those who declared they knew a lot or a fair amount about the changes the introduction of competition was, as with the self employed, overwhelmingly identified as the major feature of the changes.

• There was a fairly high level of interest declared by employers about the changes being made to ACC.

  Amongst the 94% who declared they were aware of the changes 40% declared they were very interested, 40% that they were somewhat interested with only 17% declaring they were not that interested or not interested at all.

Attitude to the Reforms

• 63% of employers declared they favoured the proposed changes to ACC, 19% were opposed with 18% unsure or volunteering conditional answers.

• The major reason given by those who supported the ACC reforms was support for the introduction of competition. This was followed by an expectation of cheaper or fairer premiums followed by an expectation of better service.

  The major reasons given by those who opposed the ACC reforms were a concern that they would be more expensive and a view that there was nothing wrong with the current system. Negatives coming through at a lower level were that it would involve more work for employers, support for Government control and a concern that service would deteriorate with the fragmentation of suppliers.

• In prompted testing there was strong agreement with the positive statements that the reforms would mean "more account would be taken of the particular circumstance of individual companies, that there would be "more incentive for employers to improve workplace safety" and that there would be "better service than ACC currently provides".

  There was also strong agreement with the negative statement that the ACC reforms would mean more disputes and more work for lawyers.

  Of the positives statements tested:

  78% considered that it was very or fairly likely and 12% not that or not at all likely that the ACC reforms would lead to "more account being taken of the particular circumstances of individual companies".

  69% considered that it was likely and 24% not likely that the ACC reforms would lead to "more incentive for employers to improve workplace safety".

  65% considered that it was likely and 20% not likely that the ACC reforms would lead to "better service than ACC currently provides".

  55% considered that it was likely and 34% not likely that the ACC reforms would lead to "lower premiums".

  54% considered that it was likely and 29% not likely that the ACC reforms would lead to "faster rehabilitation of injured workers".

  33% considered that it was likely and 53% not likely that the ACC reforms would lead to "fewer accidents in the workplace".

  Of the negative statements tested:

  67% considered that it was likely and 23% not likely that the ACC reforms would lead to "more disputes and more work for lawyers".

  47% considered that it was likely and 39% not likely that the ACC reforms would lead to "under reporting of accidents".

  34% considered that it was likely and 55% not likely that the ACC reforms would lead to "injured employees being forced back to work too soon".

Response to Reforms

• Given a choice 84% of employers declared that they would be ready to switch to a private sector insurer by 1^st July, 5% that they would allow themselves to be allocated to an insurer by the Government with 11% unsure or volunteering a conditional answer.

  As noted, considerable care is needed in interpreting "declarations" in surveys of future intentions.

• Amongst employers who declared they knew a lot or a fair amount about the reforms 89% indicated they would be ready to switch by 1^st July, 4% that they would be allocated with 8% unsure or volunteering conditional answers.

  Amongst those who are not aware of the reforms or declared they knew not that much or hardly anything about the reforms 79% declared they would be ready to switch by 1^st July, 6% that they would be allocated with 15% unsure or volunteering conditional answers.

• The time frame for making a decision is still seen by most as one to two months away. 23% declared they would finally decide which option they would take in the next month, 22% before May, 32% before June with 23% unsure or volunteering a conditional or other answer.

Information

• The major sources of information about the changes to ACC identified were ACC, followed by direct mail, followed by insurance brokers and then newspapers.

  A wider range of information sources was identified by employers compared to the self employed. This is generally consistent with the greater levels of knowledge apparent amongst employers.

  Brokers were a more significant source of information for employers than for the self employed.

• A high 90% recalled receiving the information pack. Of those 74% declared they had read or skimmed through this information pack.

• Of those who had read or skimmed through the information pack 80% considered that it was very or fairly helpful in explaining the ACC reforms with 13% considering it as not that helpful or not helpful at all.

• Amongst the 90% who recalled receiving the information pack, a very high 94% had kept it.

The tables