Almost half (47%) of all financial planners cut ties with at least one life insurer in the last 12 months and a further 27% intend to follow suit, according to Investment Trends' 2017 Planner Risk Report.
The proportion represents an increase from 45% in 2016 and 35% in 2015. More than a quarter had also said then that they would like to establish a new insurer relationship in the following year.
Senior analyst Mr King Loong Choi said the findings highlight the need for insurers to articulate a value proposition that extends across the entire value chain.
"Insurers need to provide support from the back end, through seamless underwriting and online applications, all the way to the front end, by assisting planners with client engagement and education," he said.
This is of particular importance given the changing nature of life insurance advice as planners prepare their businesses for the impact of the Life Insurance Framework.
"Many planners are evolving their business to meet the regulatory requirements. In addition to these changes, planners face a raft of other challenges in providing life insurance advice including paperwork, admin and compliance," Mr Choi said.
The survey findings also suggest insurers are largely meeting the challenge, with 90% of planners industry-wide rating their primary life insurer as 'good' or 'very good'. However, this is down from 94% year-on-year.