More financial advisers are providing life insurance advice as clients shun investment markets.

A survey by Investment Trends shows 93% of the 929 advisers questioned now provide life insurance advice, up from 73% in 2005.

Advisers spend a fifth of their client time discussing insurance needs, with the business generating a third of their revenues.

“Volatility in the markets is driving a greater proportion of clients’ investments to cash and cash products,” Investment Trends Senior Analyst Recep Peker said.

“To ensure clients continue getting value from their advice, advisers have continued to increase the role of insurance advice within their business.”

He says increased profitability in some practices is entirely due to life insurance commissions.

Advisers are generally satisfied with the service from insurers, the survey shows, with Asteron, AIA and Macquarie singled out for the most praise.

The number of the advisers surveyed rating their insurer as “good” or “very good” rose from 77% to 82% during the past year.

“Insurers have done a remarkable job addressing some of the key needs planners identified in the previous survey,” Mr Peker said.

“Significant improvements in the areas of IT systems, websites and support have helped drive overall satisfaction up.”

However, nearly half of advisers reduced or stopped dealing with at least one insurer during the past 12 months.

“With advisers demanding further enhancements to underwriting and technology, these areas will continue to be key battlegrounds for insurance providers over the next year,” Mr Peker said.

On average, advisers use 3.8 insurers for each client quote, placing 56% of their business with the same insurer.

The top five insurers based on the number of primary relationships with advisers are OnePath, AMP, MLC, Asteron and TAL.