An independent body is needed to mediate between the insurance industry and the twin regulators APRA and ASIC, says Access Economics Director Ric Simes.

Mr Simes told the ICA seminar last week the industry needs "a more effective sounding board" and should "work towards and institutionalise independent scrutiny".

He says the Federal Government cannot effectively police the regulators.

"Canberra is not well placed to oversee APRA and ASIC," Mr Simes said.