Allianz, Medibank Private and Real Insurance have jointly been given the top rating in Canstar Cannex’s direct life insurance survey.

The research house looked at 19 providers of direct life insurance including new entrants this year – Virgin Money, Suncorp, Budget Direct and ClearView.

Canstar Head of Wealth Management Stephen Mitchell says the three winners were reviewed across 16 insured profiles and two levels of provided coverage.

The profiles included all age groups up to 60, and Canstar looked at $200,000 and $500,000 of cover.

The research also reviewed policies based on gender and the treatment of smokers and non-smokers. 

“Allianz, Medibank Private and Real Insurance came within a hair’s breadth of each other, which is a true indication of just how competitive the industry is in this country,” he said.

“All three companies are very strong in the things that matter – the suite of features covered, reasonable premium costs and ease of eligibility for the majority of consumers.”

It is the third year in a row Allianz has won the top rating while Real Insurance has achieved a five-star rating two years in a row. It is the first time Medibank Private has achieved a top rating.

Mr Mitchell says the researcher noted more insurers seeking ways to differentiate their product offering.

“During the last 12 months we have noted a significant increase in companies thinking about innovative ways to improve their direct life insurance products to better meet the needs of consumers,” he said.

“This demonstrates the sector is active and on the move, with the consumer the ultimate beneficiary.”

According to Canstar, 17.8% of life insurance is now bought direct and the market grew by 3.3% during the 2010 financial year to be worth $403.1 million.