The Insurance Council of Australia (ICA) has welcomed the federal government's initiative to introduce a financial sector regulatory initiatives grid.
This framework echoes a similar approach employed by the UK's Financial Services Regulatory Initiatives Forum. It aims to create a transparent and orderly plan for imminent regulatory changes, intending to lessen the regulatory load on the financial industry.
Referencing its 2022 “Building a More Resilient Australia” report, the ICA pointed out the advantages observed in the UK model, where such a grid brought about improvements in efficiency, consistency, and clarity across the board for lawmakers, regulatory bodies, and the insurance sector.
Additionally, this move is anticipated to direct policy and regulatory efforts more effectively towards areas offering significant consumer and economic advantages.
“The ICA strongly supports the introduction of a regulatory initiatives grid, as announced by Treasurer Jim Chalmers,” said Andrew Hall, CEO of the ICA. “This will provide much-needed predictability for the insurance industry, particularly as we navigate an increasingly volatile business environment and the impacts of extreme weather events.”
Hall expressed eagerness for the ICA's involvement with the Treasury in the development of this grid.
The ICA also recently welcomed the government's consultation on standardising definitions related to natural disasters within insurance policies.
