Australians will benefit from the new three-year National Financial Literacy Strategy 2014-17 announced by the Australian Securities and Investments Commission (ASIC), according to the Insurance Council of Australia (ICA).

The strategy, launched in Sydney on Friday by Parliamentary Secretary to the Treasurer Steven Ciobo, will be supported by ICA through its own financial literacy programs.

CEO Rob Whelan says ASIC “is to be congratulated on such an important initiative”.

“ICA strongly supports the aim of helping Australians understand their financial risks so that they can protect their assets, and achieve their financial and lifestyle goals.”

ASIC will co-ordinate and lead the strategy, which provides a national framework for action across the government, business, community and education sectors.

The most recent ANZ Survey of Adult Financial Literacy in Australia also shows that more than a third (36%) of Australians find dealing with money stressful, even when things are going well; one-third find their superannuation statements difficult or very difficult to understand; and three-quarters (73%) have not identified how much they will need to live on when they retire.

ASIC research shows that only 27% of people are likely to consider the level of cover when renewing an insurance policy.

Mr Ciobo says being able to make the most of money, manage financial risks and avoid financial pitfalls can have a positive impact on the financial wellbeing of individuals, families and communities.

Under the strategy, ASIC will continue to enhance its MoneySmart website for consumers and investors, which is used by 400,000 Australians each month. ASIC will also reach more schools through its MoneySmart Teaching program to promote financial literacy in schools.

The regulator has consulted with more than 200 stakeholders over the past year to shape the new strategy.

Chairman Greg Medcraft says ASIC has a strategic priority to promote confident and informed consumers and investors in the financial system, whether they are taking out a home loan, planning for retirement or investing in the stockmarket.

Mr Whelan says financial literacy is critical for all Australians and helping to broaden consumer understanding of general insurance is a key ICA objective.

ICA’s own programs such as Understand Insurance and Find an Insurer aim to help Australians understand risk and make insurance decisions. More than 1.7 million searches have been carried out in the past two years on the Find an Insurer website.