Private insurance sought to aid NDIS cost

The financial services industry believes there should be a greater use of private disability insurance rather than leaving the onus on the public purse.

In its 2015/16 budget submission, the Financial Services Council has urged for the private sector to take on a larger proportion of the welfare costs associated with Australia's ageing population and disability support.

According to the Abbott government's National Commission of Audit released last year, the national disability insurance scheme will grow rapidly to around $11 billion by 2023/24.

FSC boss Sally Loane says these costs will continuously increase pressure on the public purse.

The council is proposing a model for private disability insurance similar to that of private health insurance and associated incentives that could generate net savings to governments of $8.5 billion over the next five years 2019.

"We strongly believe it can be used to ensure the long-term sustainability of social insurance schemes," Ms Loane said in a statement on Sunday.