The Insurance Council of Australia has backed a coalition of industry groups in calling on governments to eliminate unnecessary regulations, to ease rising costs amid the US-Iran conflict.

The Alliance of Industry Associations wants red tape cuts now and a 25% reduction in regulations by the end of the decade, echoing calls made before last year’s Economic Reform Roundtable.

It warns the fragmentation and duplication of rules across government levels contributes to higher expenses, citing reports revealing federal regulatory compliance costs the economy about $160 billion a year.

“At a time when global pressures are already pushing up costs, unnecessary duplication in our own system is adding to the burden,” the alliance said.

“Good regulation protects Australians, but when it becomes complex, duplicative and costly, it drives up prices and slows growth.”

Similar reforms have been pursued in the UK and the European Union, the alliance says.

ICA CEO Andrew Hall said: “Reducing regulatory red tape is one of the most direct levers available to ease cost-of-living pressures at a time when the Middle East conflict is driving up prices across the economy. For the insurance industry alone, that burden costs $3.5 billion every year – a 25% reduction would deliver real relief for consumers right across the country.”

The alliance’s 29 members include ICA, the Australian Banking Association, the Australian Industry Group, the Business Council of Australia, the Australian Retail Council, CPA Australia and the Property Council of Australia.