Prudential regulations should not unnecessarily discourage investment by the insurance industry, say the recommendations of the B20 – business leaders from the top 20 economies, who met in Sydney last week.

It says governments should encourage more long-term investment by the private sector, including by promoting well-structured and regulated insurance and superannuation industries.

The Global Federation of Insurance Associations (GFIA) says policymakers need to ensure global regulation does not limit insurers’ ability to invest for the long term.

“This is particularly important in terms of new international standards being developed for capital and accounting purposes,” the federation says in a statement issued after the B20 meeting.

Chairman Frank Swedlove says insurers are natural long-term investors who can “do much more if the right policy environment is put in place”.