Victoria will make $1.4 billion from insurance taxes next financial year, state budget papers reveal.

The sum is up 8.1% on this year, and further average annual increases of 6.4% are expected up to 2022.

In Victoria, duty is payable on general insurance premiums at a rate of 10%.

The insurance industry has long argued for the abolition of such taxes, saying they are inefficient and contribute to underinsurance.