Governments should ensure regulations encourage insurers to make long-term investments that can aid economic growth, according to the Global Federation of Insurance Associations (GFIA).

Chairman Frank Swedlove says G20 growth targets require investment, but global capital requirements and accounting rules encourage a short-term approach.

“The insurance industry is very well placed to contribute to long-term investing,” he told a briefing after meetings with government representatives ahead of the G20 meeting in Brisbane in November.

“However, to do that you need to have the right environment and that includes regulation that does not discourage long-term investment taking place.”

Mr Swedlove, who is President of the Canadian Health and Life Insurance Association, says the worldwide insurance industry has assets under management of $US26.8 trillion ($29.7 trillion) and about $US4.6 trillion ($5.1 trillion) available to invest in the global economy.

The GFIA was established in October 2012. It says its 37 member associations represent insurers that account for about 87% of global premium.

Australia is president of the G20 this year and hosted a finance ministers’ meeting last month, when participants committed to growing collective gross domestic product by more than 2% above the current trajectory over the next five years.

Mr Swedlove says other issues raised with government officials included increasing market access for insurance and rules in developing countries.

Actions to crack down on tax evasion are increasing costs for insurers and there needs to be more consultation and investigation of costs and benefits, he says.