The insurance industry will pay about $21.332 million in levies to fund the Australian Securities and Investments Commission’s supervision of the sector for last financial year.

ASIC gave the figures in its 2023-24 cost recovery implementation statement, which sets out its regulatory activities in industries it oversees and its levy tabulations.

The levy figures are indicative and a breakdown of insurance by type is not provided.

General and life insurers will be levied about $13.125 million; insurance product distributors $476,000; risk management product providers $80,632; and claims handling and settling services providers $7.65 million.

In 2022-23, regulating insurers cost $27.5 million; insurance product distributors $3 million; risk management product providers $367,809; and claims handling services providers $5.5 million.

ASIC expects to collect $345.6 million through cost recovery levies and statutory levies for 2023-24.

In general insurance, the regulator’s key work last year covered cyber and operational resilience, design and distribution obligations, the Financial Accountability Regime, breach reporting, and misconduct in claims handling and pricing.

ASIC says cost estimates are provided before collections to help financial services companies budget for the charge. Levy notices will be issued between January and March next year after actual levies have been calculated.

The National Insurance Brokers Association has welcomed the levy estimates.

“A well-funded regulator is essential for the successful operation of the general insurance industry and increases community confidence in both insurance companies and general insurance brokers,” NIBA said. “As the voice of the general insurance broking profession, NIBA looks forward to continuing to engage with ASIC to promote responsible risk management and an efficient and effective insurance market.”

See the cost recovery statement here.