The Australian Securities and Investments Commission (ASIC) estimates it will cost $14.1 million to regulate the life and general insurance sectors this financial year.

Costs to be recovered from the industry include $11.45 million from product providers, $2.38 million from distributors and $290,000 from risk management product providers.

The focus on product providers this year will include mis-selling of general and life insurance products to vulnerable consumers, including funeral cover in indigenous communities, the regulator says in a cost recovery implementation statement.

Providers will pay a minimum levy of $20,000 each, with a graduated levy applying to those with more than $5 million in product income.

For distributors, ASIC priorities will include reviewing insurance offered through superannuation, focusing on complaints handling, conflict management, and culture and board involvement in decision-making.

The insurance sector accounts for 5.7% of the total regulatory costs ASIC will recover this financial year. The commission will publish a final cost recovery statement early next year, after receiving stakeholder feedback.