The Greens will push for compensation for families left out of pocket by the collapse of an Indigenous-focused funeral insurance provider which regulators failed to shut down for three decades.

Last week the Save our Sorry Business coalition launched a campaign calling on the next federal treasurer to immediately support those waiting to bury loved ones now, and open compensation to families affected by the scandal.

Greens First Nations spokeswoman Lidia Thorpe said it was devastating to hear of family members being left in morgues while community saved for sorry business.

"We struggle to survive in this Country, and we can't even rest in peace," she said.

"The Coalition allowed Youpla Group to continue to trade and target First Nations people.

"This Government's failure to regulate the industry has caused these losses, they have a duty to compensate policyholders."

The Save our Sorry Business letter argues Aboriginal Community Benefit Fund, trading as Youpla, actively preyed on sorry business for nearly three decades, luring Indigenous people into schemes worth tens of thousands of dollars for "culturally appropriate" funerals.

It says regulators and governments were warned in 2019 of the exploitative practices of Youpla but chose to watch the fund collapse instead of stepping in.

Some 17,174 policy holders poured in about $151.24 million into Youpla, according to Consumer Action Law Centre, with the average client owed about $10,000.

Federal Treasurer Josh Frydenberg and shadow treasurer Jim Chalmers did not respond to requests for comment.

Labor has previously promised to set up an inquiry into Youpla should it win government, but has made no commitment to compensation.

The Coalition has argued it deserved credit for passing laws following the banking royal commission which ultimately shut Youpla down, and that ASIC is pursuing legal action.

They have also argued there are existing mechanisms in place to support burials at a state level.