The Insurance Council of Australia (ICA) has backed the proposed free trade agreement between Australia and China.

In its submission to a Joint Standing Committee on Treaties inquiry, ICA says the deal will bring many benefits for insurers.

China has committed to letting Australian insurers access its statutory third-party liability motor market.

It has also undertaken to improve conditions for the establishment of internal branches of Australian insurers in China.

Australian insurers will also benefit from treaty-level commitments on financial services, the submission says.

“The regulatory environment in which they operate will be more transparent, regulatory decision-making should be improved and financial services licence applications streamlined.”