Insurers and other financial services providers will navigate the regulatory environment in a “simpler and easier” manner with the help of a new tool, according to the Federal Government.

Modelled on Britain’s approach, the financial sector regulatory initiatives grid aims to clearly indicate regulations that might affect an insurer’s business and support engagement with proposed reforms and their implementation.

“We want to make it simpler and easier to do business in Australia and that’s what this will help achieve in the financial services sector,” Treasurer Jim Chalmers and Financial Services Minister Stephen Jones said in a joint statement yesterday.

“A regulatory grid will help financial services businesses engage with the Government and regulators more effectively and allow regulators to avoid duplication, build shared strategic priorities, and focus on how to best implement reforms.”

The grid will be a rolling, 24-month forward program of regulatory initiatives that will materially affect areas including insurance, banking, credit, superannuation, investment, payments and capital markets, and it will be updated twice a year.

It will include initiatives from agencies including the Australian Securities and Investments Commission, the Australian Prudential Regulation Authority, the Australian Competition and Consumer Commission, the Reserve Bank and the Australian Taxation Office.

The grid will be established and administered by Treasury after consultation on rules, proposed legislation, standard making and data collection processes are finalised.

Insurers say the grid will provide a clear roadmap for regulatory changes and reduce the compliance burden on the industry. They say it will also benefit consumers by targeting policy and regulatory resources towards clearly defined areas of consumer and economic benefit.

Insurance Council of Australia CEO Andrew Hall says the body “strongly supports the introduction of a regulatory initiatives grid ... 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.

“We look forward to engaging constructively with Treasury as it develops the grid.”