The industry data collection system proposed by the Insurance Council of Australia (ICA) last year is a step closer to implementation, says ICA Executive Director Alan Mason.

He told ICA’s NSW conference on Friday that council staff have been talking to the Australian Prudential Regulation Authority about introducing a more sophisticated data collection system and had been invited to submit a proposal.

ICA is still developing that proposal, which will include a single set of criteria or data specifications for the industry and a single body engaged to collect and analyse the data.

It will allow the entire general insurance industry to have access to competitors’ information. 

“There’s a recognition by insurers that more sophisticated data is needed to be able to effectively respond to changing markets and regulatory conditions and to more effectively price risk and recognise trends at an industry, not just a company, level,” Mr Mason said.

“It will able us to talk authoritatively about the cost drivers of our products.”

ICA hopes to submit its application to the regulator some time this week.