Objectives

The primary objective of this survey was:

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

  Other specific objectives of the quantitative research stage were:

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

• to measure the likelihood of self-employed, currently dealing with ACC, switching to private insurance companies;

• to gain a better understanding of the sources of information the self-employed 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 the self-employed broken down by urban, provincial, business size and major region samples.

Methodology

This report is based on results of a telephone survey of 350 self employed New Zealanders that earned over $14,000 in the last tax year. 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.

The margin of error for a 50% figure at the 95% confidence level is plus or minus 5.2%.

Fieldwork was conducted from 12th March to 18th March 1999 at UMR Insight's national interview facility in Auckland.

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

• Declared awareness of the reforms is high at 85%. 49% were able to correctly nominate the 1st July starting date.

• The reforms were overwhelmingly identified as providing competition for ACC.

• There was overall a positive attitude towards the reforms with 63% in favour and 18% opposed.

• 26% of the self employed declared they would be ready to switch to a private sector insurer by 1st July; 39% declared they would wait and see; 19% that they would stay with the ACC and 3% that they would choose to insure with the new State-Owned Enterprise. 12% were unsure.

  47% of those who declared they would "wait and see" thought they would eventually end up with a private sector insurance company and 15% that they would stay with the ACC. The remainder were unsure.

• It is critical, nevertheless that appropriate caution is applied to interpretation of declared intentions at 1st July.

  This declared response was in answer to a prompted set of options which some of the self employed may not have yet thought about to a great extent.

  There are also always steps to be negotiated before declared intentions measured in any 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.

• The information pack appears to have been highly effective in drawing attention to the reforms. 83% remembered receiving the pack and of those 80% declared they had read or skimmed through the information pack. A very high 92% of those who remembered receiving the pack had kept the pack which can certainly be taken as an indication that it was seen as providing important information.

General Setting

• 47% of the self employed surveyed used an insurance broker.

• 75% declared they had fire and general insurance, 69% public liability and indemnity insurance, 50% health insurance and 17% key man cover.

• The self employed had moderate levels of contact with insurance providers. 10% declared they personally had "a lot" of contact with their insurance providers, 24% "a fair amount" and 64% "not that much" or "hardly any" contact.

• Those who had a lot or a fair amount of contact with their insurance providers were mostly satisfied with the service provided. 94% declared they were generally satisfied and 5% dissatisfied with their personal dealings with their insurance providers.

• Self employed were also reasonably satisfied on value for money provided by insurance companies. 55% thought they were getting value for money, 27% that they were not with 18% unsure or volunteering conditional answers.

Awareness of Reforms

• There was 85% declared awareness of the ACC reforms amongst the self employed.

• 49% of the self employed aware of the reforms were able to correctly nominate the July 1999 starting date.

• 13% of the self employed who were aware of the reforms declared they knew "a lot" about the reforms, 37% a "fair amount" with 49% declaring they knew "not that much" or "hardly anything".

• Introduction of competition overwhelmingly emerged as the key element of the reforms when those who declared they knew "a lot" or a "fair amount" about the proposed changes were asked what the main features were.

• There were reasonably high levels of declared interest in the reforms. Amongst those aware of the reforms 33% of self employed declared they were "very interested" in the proposed changes to ACC, 42% that they were "somewhat interested" with 22% declaring they were not interested.

Attitude to the Reforms

• 63% of self employed declared they supported and 18% that they opposed the reforms. 18% were unsure.

• The major reason given for supporting the reforms was favouring the introduction of competition. This was followed well back by expectations of cheaper/fairer premiums and better service. Coming through at an even lower level were ACC negatives including getting worse, unfairness, fraud, poor service experiences and high costs.

• The major reason given for opposing the reforms was concern that it would cost more. This was followed by a view that there was nothing wrong with the current system, concerns that fragmentation of service providers would lead to poorer service, the work involved in finding a new provider and support for Government provision of accident compensation insurance.

• Of the positive statements tested:
  - 69% considered that it was very or fairly likely and 14% that it was 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".

  - 66% considered that it was likely and 24% not likely that the ACC reforms would lead to "more incentive for employers to improve workplace safety".

  - 61% considered that it was likely and 18% not likely that the ACC reforms would lead to "better service than ACC currently provides".

  - 52% considered that it was likely and 38% not likely that the ACC reforms would lead to "lower premiums".

  - 50% considered that it was likely and 35% not likely that the ACC reforms would lead to "faster rehabilitation of injured workers".

  - 30% considered that it was likely and 54% not likely that the ACC reforms would lead to "fewer accidents in the work place".

  Of the negative statements tested:

  - 65% considered that it was likely and 24% not likely that the ACC reforms would lead to "more disputes and more work for lawyers".

  - 49% considered that it was likely and 34% not likely that the ACC reforms would lead to "under reporting of accidents".

  - 38% considered that it was likely and 43% not likely that the ACC reforms would lead to "injured employees being forced back to work too soon".

Response to Reforms

• Given a choice of what they would do by 1st July:
  - 39% of self employed declared they would wait and see how the market develops before making up their mind;

  - 26% declared they would "be ready to switch to a private sector insurer by 1st July";

  - 19% that they would stay with the ACC as it is now;

  - 3% declared they would choose to insure with a new State-Owned Enterprise;

  - 12% were unsure or volunteered a conditional answer with a further 1% rejecting all options presented.

  As already noted care is needed in interpreting declared intentions in surveys.

  Those who declared they would "wait and see" were also asked if they thought it was more likely that they would end up with a private sector insurance company or stay with ACC.

  47% declared they would end up with a private sector insurance company and 15% that they would stay with the ACC with 38% unsure or volunteering a conditional answer.

  Those with an insurance broker were more likely to be ready to switch to a private sector company. Amongst this group 37% declared they would be ready to switch, 32% that they would wait and see and 15% that they would stay with ACC. Amongst the self employed who did not use an insurance broker 15% declared they would be ready to switch, 46% that they would wait and see and 23% that they would remain with the ACC.

  Amongst the self employed who declared they knew a lot or a fair amount about the reforms 39% declared they would be ready to switch to a private insurer by 1st July, 30% that they would "wait and see", 16% that they would stay with ACC, 3% that they would insure with the new SOE with 12% unsure or volunteering conditional answers.

  Amongst those who were not aware of the reforms and those, who while aware of the reforms declared they had not that much or hardly any knowledge of the reforms, 16% declared they would be ready to switch to a private insurer by 1st July, 45% that they would "wait and see", 20% that they would stay with the ACC, 2% that they would insure with the new SOE with 15% unsure or volunteering conditional answers.

Information

• The major sources of information about the changes to ACC identified were the ACC itself and direct mail. The next most important was newspapers followed by television, word of mouth, advertising from insurance companies and trade publications.

• There were good ratings for the information pack. 83% declared they remembered receiving the information packs. Of those 80% declared they had read or skimmed through the information pack.

• Of those who declared they had received the information pack and had read or skimmed through it 72% declared that it was very or fairly helpful in explaining the ACC reforms and 15% that it was not that helpful or not helpful at all.

  Amongst all who remembered receiving the information pack a high 92% indicated they had kept it.

The tables