Financial advisers still see life insurance as a growth market, but are ignoring the self-managed super fund (SMSF) market.

A national survey by AIA Australia found 89% of advisers expect the life insurance market to grow with only 1% expecting a decline.

Advisers believe families and the self-employed are the segments that will drive life insurance sales, with the least growth coming from singles and those aged under 30 with double incomes and no children.

AIA Australia GM Life Insurance Damien Mu says the results are surprising, as advisers seem to be ignoring the SMSF sector.

“SMSFs didn’t feature in the top three growth categories for any state surveyed,” he said.

“Given this is the fastest growing segment in the super space, I think there are still a number of advisers looking at how they can be serving this growing area.”

The AIA Australia Adviser Partnership Survey of 1100 advisers from all states asked where advisers expect growth this year and how far advanced they are in responding to the Future of Financial Advice (FOFA) reforms.

The survey says nearly half of advisers still have not started talks with clients about the implications of FOFA.

But a third of advisers have started talking to clients and have implemented a communication campaign.

The survey also revealed the more worrying trend that advisers are not making changes to their business models to reflect the FOFA reforms.

According to the survey, about a third of advisers have begun preparing their businesses.

“The survey results provide an interesting perspective on how advisers are responding to the changes occurring in the life insurance market,” Mr Mu said.

“It has also shown how many advisers are preparing their businesses for FOFA and how we can support them to address any issues.”