Growth in the number of financial advisers after the Future of Financial Advice (FOFA) reforms disproves claims there will be an industry exodus if life insurance commissions are scrapped in 2021, Rice Warner says.

FOFA legislation in 2012 outlawed commissions on all new investment products, leading to the introduction of fees for service. Life risk commissions outside super were exempted.

The industry argued scrapping investment commissions would drive advisers away, resulting in a shortage of help for consumers.

However, Rice Warner figures show the number of financial advisers grew from about 16,000 in 2010 to more than 25,000 six years later, and numbers have now plateaued.

A drop in full-service holistic advisers has been offset by growth in intra-fund and other advisers, and in online advice, the actuaries group says.

The Hayne royal commission recommends risk commission caps should be gradually reduced to zero following a review by the corporate regulator.

The industry argues consumers will not pay large sums under a fee-for-service model, and it will reduce the number of advisers and exacerbate underinsurance.

Rice Warner says legislative changes around opt-in group insurance will encourage funds and insurers to provide more automated underwriting services, which will improve the availability of cover beyond the default and increase the use of life insurance within super.