The Hayne royal commission’s recommendations are likely to disrupt the life insurance distribution chain, according to consultant Roy Morgan.

Financial advisers distribute about 24% of life and risk product total value, with another 40% through direct sales and 27% through employers.

Roy Morgan Industry Communications Director Norman Morris says many problems flagged in the royal commission involved customers obtaining products through channels ill suited to their best interests.

The commission says ongoing fees should be paid only from a client’s account with the client’s written authority to the account manager at the time the arrangement is renewed, or immediately after.

It also says the corporate regulator should consider reducing the cap on life insurance commissions to zero.

Many life products recommended by financial advisers sit on managed account platforms.