Insurers are doing well in tackling underinsurance, but issues remain over pricing and availability, according to a new survey.

A majority of group risk insurance clients believe the insurance industry is doing a "good" or "exceptional" job in improving underinsurance in the market, while just over a third described the efforts of insurers as "poor".

Clients surveyed by CommInsure said the top three factors that contribute to underinsurance from a group risk perspective are level of cover, cost and type of benefit.

The survey of CommInsure's clients - which unsurprisingly rated the insurer's efforts to address underinsurance highest among its competitors - showed the industry is still playing catch up, CommInsure MD Simon Swanson said.

"While these survey results are encouraging, the industry as a whole has a lot of work to do to help Australians have the right level of insurance to fall back on when life's nasty surprises arise."

For the year ending December 2006, CommInsure had an 18.5% market share of the group risk insurance market, or $305 million of the sector's $1.65 billion of inflows.