A change to competition law will give the regulator power to grant faster exemptions in the case of emergencies and other exceptional circumstances.

The move could allow insurance industry competitors to co-ordinate in the case of a natural disaster.

The Australian Competition and Consumer Commission has welcomed the amendment, aimed at businesses that need to urgently work with competitors to mitigate harm to consumers and the economy, including to ensure supplies of critical products.

The powers will be triggered by the government declaring a national emergency, or the treasurer declaring exceptional circumstances apply.

The amendment – a response to the Iran war fuel crisis – adds to the ACCC’s current powers to grant exemptions from competition laws. The regulator will now develop guidelines on the powers.