The insurance industry has been trying to get the Federal Government to listen to its concerns about the high cost of regulation for years, and it looks like some of its prayers have been answered.

The industry is unanimous in its support of recommendations made by the Government last week, saying lower regulatory costs will benefit everyone.

Insurance Council of Australia (ICA) CEO Kerrie Kelly says the moves are a significant step towards streamlining financial regulation and will help to deal with the inefficiencies of overlapping regulatory responsibilities.

“The Government has been listening to the concerns of the industry and consumers, and what remains is for these changes to be introduced quickly so that consumers can receive the maximum benefit as soon as possible,” she said.

ICA says dollar disclosure provisions for general insurance, improvements in the type of information that can be provided over the telephone, and the treatment of bundled general insurance products will mean the insurance process is simpler and shorter.

“It makes sense to allow bundled general insurance products that are predominantly directed at wholesale clients to be treated as wholesale,” Ms Kelly said.

“Importantly, these steps recognise that general insurance policies are substantially different to other financial products in the way they are priced and sold.”

National Insurance Brokers Association (NIBA) CEO Noel Pettersen says Parliamentary Secretary to the Treasurer Chris Pearce is doing a good job in assessing the industry’s regulatory concerns.

“In the first read-through the refinements look positive, and Mr Pearce has addressed a number of issues we have brought to him on behalf of our members.”

Mr Pettersen says NIBA will meet Mr Pearce in the next couple of weeks to discuss the recommendations and their effect on brokers.

Investment and Financial Services Association CEO Richard Gilbert says the recommendations are overwhelmingly positive, necessary and welcome.

“Efficient regulation is a key ingredient in the productivity equation,” he said.

“For the Australian financial services industry, product rationalisation is critical for ensuring greater efficiency and lower costs for consumers. Simpler and more effective regulation is a key driver of productivity.”