The Actuaries Institute has called for an open-data regime allowing increased access to important federal government information.

It argues the move would lead to better analysis and management of risks to the financial system.

Only limited data is released on the insurance and banking industries at present, according to the institute.

Its submission to the financial system inquiry also recommends the establishment of a financial system policy commission to put forward comprehensive policy options for managing the financial system long-term.

This commission could address the affordability of flood cover in high-risk areas and recent losses in the life insurance sector that could lead to affordability issues.

The institute also wants an industry financial compensation scheme to support consumers in cases of counterparty failure.

“Despite Australian Prudential Regulation Authority regulations and very strong capital and risk-management requirements for insurers, consumer concerns about counterparty risk may pose constraints for future development of lifetime annuity markets and products,” it says.