Life insurance sales are migrating to the internet, with direct business accounting for 25% of the market in 2010/11 and expected to climb to 40% within 10 years, according to a new report by research group Plan For Life and consultants Oliver Wyman.

The migration to direct sales is driven by several factors, including the adoption of digital technologies like smartphones, tablets and social media, and the move by advisers to multi-channel sales models with different pricing and service levels.

The move into the sector by diversified financial institutions keen to drive life insurance sales is also driving direct sales.

The researchers say the emergence and consolidation of online advice providers using search engine technology will also allow consumers to find the best deals.