Agri-Industry Summit 2017Thank you to our sponsors

10th and 11Th August 2017

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Improving the experience for our Customers

Presentation by:Leigh Austin

Relationship Manager

We have a lot of customers and we know we can do better in how we work with them

Customer group Volume

Large 3,000

Medium 181,000

Small business/Self employed 300,000

Intermediaries 51,000

TOTAL 535,000

Our customers have told us that issues relating to levies, rehabilitation and customer service are responsible for the majority of their concerns and irritations.

We are working hard to address these concerns.

Better access, better information, better service

We are undertaking a significant improvement of our systems and processes that will change the experience business customers have with us. The improvements are based on what our customers have told us matter to them.

Some of the improvements have commenced and others will come on-stream later this year. These include:• Making levy invoices simpler and easier to understand as well as delivered

closer to when customers file their tax returns.• Providing better online access for business customers to manage their

account and amend their payment plans to suit their needs and the way they do business.

• Providing better information for our business customers on an improved acc.co.nz and other online services.

• Having our contact centres available for longer and at more convenient times.

Over the medium term we will be introducing new products and services that will help make dealing with us easier.

MyACC for Business

MyACC for Business – available from from the 3rd of July via acc.co.nz.

The new website and MyACC for Business have been designed to be accessible from a range of devices like mobiles, tablets and laptops

Through MyACC for Business you can: • view and pay invoices • view transaction history• view and update contact and business details• invite another person (eg a business partner) • to view and manage your account• tell us if you’ve ceased trading.

Register for MyACC for Business at acc.co.nz using your ACC number or IRD number.

Safer workplaces:A new approach to working with customers

• In 2017 we started working in partnership with New Zealand businesses to design a new range of workplace incentives thatreward customers for reducing workplace injuries, rather than giving discounts for health and safety compliance.

• The current experience rating and accredited employers programmes are being reviewed as part of the co-design process.

• We are also co-designing targeted financial incentives that will help businesses improve their safety performance.

• As they are developed we will publish the proposed approaches online so that business customers can review and provide feedback throughout the development process.

• More information and feedback can be found here:shapeyouracc.co.nz

Safer workplaces:New technologies, and new sectors

We will soon be introducing a number of new workplace safety tools to help specific sectors manage their risks. The news tools are based on providing customers information when and where they need it. These include:• A smartphone app for workers doing a lot of repetitive lifting.• Web based risk assessment tools that are especially designed for mobile platforms.

We are also working closely with Worksafe to develop and implement the Harm Reduction Action Plan and to develop new processes and systems to help our business customers, which include:• A new health and safety performance and assessment tool - previously known as safety star

rating.• A range of health and safety services for the agriculture and constructions sectors.• We will be starting soon on programmes for small business and health sectors.

We are partnering with a number of organisations that are leading improvements in health and safety performance – such as Health and Safety Association of NZ (HASANZ) and the Business Leaders Health and Safety Forum.

Next steps

• We are committed to working in partnership with our customers to build products and services that meet your needs.

• We recognise that in order to reduce workplace injury, reduce levies and improve our service to our customers we cannot work in isolation.

• This philosophy is now embedded in everything we do for our customers.

• We need you to help us be even better.

• Watch this space for more opportunities for you to work with us.

CoverPlus Extraagreed cover for self-employed and non-

PAYE shareholders

Presentation by:

Nathan Meo

Relationship Manager

• You choose how much of your income you want covered if you have an accident and can't work.

E.g., if you chose $52,000 per year as your level of income cover, we'd pay 100% of that each week, which is $1000 before tax.

• Cover (underwriting) is based on the average of the last three years liable earnings.

• If no earnings history can be covered for up to 60% of industry’s labour replacement cost.

• The level of cover cannot be less than $25,376* or greater than $99,242*. These amounts are adjusted annually

• An application for CoverPlus Extra must be completed. Agreed level of cover can start from this date.

w CoverPlus Extra works

y benefits of CoverPlus Extra

• If your client is injured and has to take time off work they will receive the pre-agreed level of cover if entitled

• Proof of earnings is not required at claim time

• Weekly compensation is 100% of the agreed cover while returning to work gradually or if the business continues to generate an income

When to consider CoverPlus Extra

• When the insured’s income fluctuates from year to year

• When the insured is new to business and no income history

• Where taxable income is not representative of actual earnings

• Where personal duties are not a true reflection of the business activity

• Income loss cannot be proven

• Were an insured wants to control the level of cover they require

Scenario 1: Comparing CoverPlus And CoverPlus Extra

John – Orchardist, Self-employed 2002Average taxable income last 3 years - $80,000

CoverPlus CoverPlus Extra

Level of Cover $64,000 $64,000

Total Levy (incl. GST) $2,088 $2,164

An extra $76 for CoverPlus Extra gives John:

• 100% of the weekly amount negotiated if he can’t work because of injury

• No need to prove loss of earnings

• Full compensation whilst returning to work gradually

Scenario 1: Comparing CoverPlus And CoverPlus Extra

John – Orchardist, Self-employed 2002Average taxable income last 3 years - $80,000

CoverPlus CoverPlus Extra

Level of Cover $64,000 $25,376

Total Levy (incl. GST) $2,088 $858

Please note when reducing the level of cover consideration should be given to the effect on both weekly compensation and on fatal entitlements available to the covered person’s spouse, children and dependents.

Scenario 2: Kilmara Farms Ltd

• Two non-PAYE shareholders both currently on ACC Workplace Cover under the company classification code of Beef cattle farming 01250

• Average income last 3 years

o Dean $70,000o Lynne $60,000

• Individual shareholder’s role within business

o Dean Farm Managero Lynne Administration

ost Comparison

Current Situation:

Dean Lynne TOTAL LEVY

Current CU 01250Beef Cattle

01250Beef Cattle

Current Levy ACC Workplace Cover* $2,914 $2,498 $5,412

Level of Cover (up to) $56,000 $48,000

With change in classification code:

Dean Lynne NEW TOTALLEVY

New CU 01250Beef Cattle

78540Office Admin

New levyACC CoverPlus Extra*

$2,914 $1,108 $4,022

Level of Cover (agreed amount) $56,000 $48,000

*All levies quoted are indicative only, using 2017/18 levy rates and including GST

st Comparison

Kilmara Farms may consider the level of cover required for each individual

Dean Lynne NEW TOTALLEVY

New CU 01250Beef Cattle

75840Office Admin

New levyACC CoverPlus Extra*

$4,292 $612 $4,904

Level of Cover (agreed amount) $80,000 $25,376

By restructuring Kilmara Farms you have:

• Given Dean an additional $24,000 in agreed cover to insure his actual loss to the business is covered

• Given Dean full compensation as he begins a return to work on the farm

• Given Lynne agreed cover as she may not be able to prove a loss to the business

• Saved $508 per year in levies

Cost Comparison - Minimum

*Please note when reducing the level of cover consideration should be given to the effect on both weekly compensation and on fatal entitlements available to the covered person’s spouse, children and dependents.

Dean Lynne NEW TOTALLEVY

New CU 01250Beef Cattle

75840Office Admin

New levyACC CoverPlus Extra*

$1,405 $612 $2,017

Level of Cover (agreed amount) $25,376 $25,376

How we can help in case of accidental death

$ per year $ over the life of the claim*

Spouse $38,400 $499,200Total

$870,400Eight year-old $12,800 $166,400

Five year-old $12,800 $204,800

* if the children were in tertiary education until 21

CoverPlus – last year’s income $80,000

$ per year $ over the life of the claim*

Spouse $15,226 $197,938Total

$345,113Eight year-old $ 5,075 $65,975

Five year-old $ 5,075 $81,200

CoverPlus Extra – agreed cover $25,376

John has a spouse and two children, a five year-old and an eight year-old. If John were to pass away as the result of an accident, his spouse and children would be entitled to the following:

-($525,287)

Accidental Death can include

• Motor vehicle accidents

• Work accidents

• Sports accidents

• Drowning

• Treatment injury

• Murder

• Accidents in the home

• Work related gradual process.

What to think about when reducing ACC cover in favour of private income insurance

• Exclusions (industry based, existing conditions, recreational activities)

• Loss of death entitlements

• Duration of cover

• Age related premiums

• Stand down period of private income protection

Agri-Industry Summit 2017Thank you to our sponsors

10th and 11Th August 2017

Principle Sponsor

Gala Dinner Welcome Drinks

Coffee Cart

Artisan Showcase

Sponsors