Plunging interest rates deliver whopper long term ACC deficit

Wed, 25 Sep 2019

By Pattrick Smellie Sept. 25 (BusinessDesk) - Plunging global interest rates have delivered the Accident Compensation Corporation's biggest-ever deficit on its 100-year Outstanding Claims Liability, at $8.7 billion for the year ended June 30. Since that date, further interest rate falls have blown that out closer to $13 billion and the no-fault government accident insurer's accounts warn that a full one percentage point fall in rates during the next year could take the OCL deficit out to about $20 billion. While the OCL deficit has no...

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