The number of direct life insurance products sold in Australia has increased by 27% in just two years, according to a new report by actuaries Rice Warner.

Its 2010 review of direct life insurance products finds there are now 138 direct life products on offer compared to 109 in 2008.

Direct life products comprise 14% of overall risk insurance sales and 10% of total inforce premium, excluding loan and mortgage cover.

The internet has proved the main driver of growth, spurring demand for life, total and permanent disability and trauma covers.

The report sees direct distribution as a “key growth area for life companies over the next few years”.

Direct products are priced between 85% and 125% of comparable intermediated products, but 150-400% more expensive that those written through industry superannuation funds, according to the research.

Providers GE Money, HCF Life, Citibank, Westpac Life and Tower Australia’s Insurance Line are particularly active players in a market of 27 players.