Survey shows that UK consumers have little trust in their insurance providers
Ernst & Young, a leading professional services firm, has released the results of its latest EY Global survey. The survey is focused on gauging the trust that consumers have in their insurance providers. According to the survey, which is comprised of information from 30 countries, the vast majority of insurance customers have below average trust in insurers. Trust has been an ongoing issue for the insurance industry, which has not been easily to overcome.
Approximately only 7% of consumers have complete trust in the insurance industry
The survey shows that only 7% of consumers in the United Kingdom have complete trust in their insurance providers. This is lower than the trust reported in other European countries and well below the global average. This lack of trust comes at a time when the UK insurance industry is undergoing significant change and insurers are being forced to tackle new challenges. Ernst & Young analysts note that the auto insurance market has reported unprofitability and the homeowners insurance market is not far behind.
Cost is affecting consumer trust
According to the survey, consumers have more trust in pharmaceutical companies and banking organizations than they do in the insurance industry. Cost is a factor that is affecting this trust. The survey shows that 80% of UK consumers have switched insurance providers due to costs. Because insurance companies do not always disclose the exact reasons why they raise rates on the coverage they provide, some insurers are often seen as untrustworthy, which encourages consumers to find a new provider.
UK ranks last in terms of communication between insurers and consumers
Communication also seems to be a problem in the UK insurance industry. The survey shows that communication between insurers and their customers is quite low. In fact, the UK has earned the lowest ranking, in terms of communication, of any other country in Europe, the Middle East, and Africa. Approximately three in ten people in the UK have claimed to have some interaction with their insurance provider over the past year and a half.
