Industry consolidation has had a fundamental impact on the Australian life insurance sector, according to new analysis published by Credit Suisse.

The Credit Suisse analysis stated that as a result of industry consolidation in recent years, the top 10 largest life insurance providers in Australia currently take up more than 95 per cent of annual in-force premiums.

What is more, the analysis suggested that this narrow focus of control would be strengthened in the event of the further consolidation that would flow from National Australia Bank taking AXA Asia Pacific.

It said the market continued to be dominated by the larger banking groups, with the four major banks, Commonwealth, NAB, ANZ and Westpac, controlling around 50 per cent of the market.

It said the acquisition of Aviva by NAB and ING by ANZ had cemented this reality.

The analysis said following the demerger of the Tower Group, Tower Australia had become the only listed financial institution with a pure exposure to the Australian life insurance industry.