The latest Trust in Insurance Index from consumer organisation Fairer Finance has found that consumer trust in the industry is at its lowest ebb for four years. The marker is derived from polling 10,000 consumers about their view of insurers across the motor, home, pet and travel sectors. In contrast, the poll found that customer satisfaction with claims had increased since spring 2023, although it was still below the levels achieved before 2020.

James Daley, managing director at Fairer Finance, said: “Falling premiums aren’t enough to restore public trust in insurers, especially when claims experience and transparency continue to lag. Our latest results underline the fact that trust is fragile, and once lost, it’s not easily regained.

“The insurance sector is now firmly in the regulator’s spotlight – and needs to step up to the challenge of closing the expectation gap. Too many consumers are buying policies without understanding where the limitations of their cover are. Insurers, brokers and price comparison sites need to work together to help consumers understand what they’re buying and, more importantly, what they’re not buying.”