Just under 80% of consumers believes commissions are a fair way for financial advisers to be remunerated and 57% would be less likely to seek life cover if upfront fees were compulsory.

The findings are from a research study commissioned by Zurich which asked 300 consumers to consider questions on how advisers are paid for providing life insurance advice and services.

When given a choice between paying adviser commissions via their insurance premiums or paying an additional, upfront fee, 79% of respondents said commissions were fair, with the remaining 21% disagreeing.

The survey also found a majority opposed compulsory fees for advice.

"Whilst one third of those surveyed said that moving to an upfront fee-only model would make them more likely to seek life insurance advice, a disturbing 57% said they would be less likely to seek risk advice if they were forced to pay an upfront fee," said Zurich Life Australia general manager Colin Morgan.

The insurer said these figures suggest the overall risk market would reduce by 24% if risk commissions were banned.

Morgan said parties purporting to represent consumer interests have failed to engage with those consumers and that, according to their own research, "consumers are supportive of the concept of commissions in risk provided there is transparency about them."

The report also found the maximum fee a consumer would be willing to pay for risk advice would be A$605, a figure Morgan said is well below the real cost of advisers providing that advice.

"Legislating the way - and effectively the amount - advisers can be remunerated for the advice they provide is contrary to the concept of providing consumers more choice," he said.