Consumer satisfaction with insurance reaches joint highest level

New data published by the Chartered Insurance Institute (CII) has found that overall consumer satisfaction with insurance policies reached its joint highest level since the organisations’ Public Trust Index survey began in July 2018.

The professional membership body for the insurance sector asks around 1000 consumers and 1000 small- to medium-sized enterprises (SMEs) about their satisfaction with a range of insurance policies every three months.

The latest results show that 86 per cent of consumers who had recently bought an insurance policy were satisfied with their purchase, the highest level since July 2022. That figure was broadly-based across motor insurance (86 per cent), travel insurance (86 per cent) and buildings/contents insurance (84 per cent).

The Index also looks at consumer responses by age, gender, and ethnicity. The proportion of respondents aged 18–34 who said they were satisfied with all forms of insurance policy that they had purchased recently fell slightly – to 82 per cent – significantly below other age groups. Those aged 55 and over reported a sharp rebound in satisfaction from earlier in the year, rising from 83 per cent to 87 per cent.

CII Group Policy and Public Affairs Director, Dr Matt Connell, said: “Our headline satisfaction number suggests insurance companies are doing many things well in the eyes of consumers. It is particularly pleasing to report that the investments made by many firms to speed up their claims processes are being recognised by consumers.

“Over recent years, insurers have done a huge amount of work to comply with the FCA’s General Insurance pricing rules, which ensure that renewing home and motor insurance consumers are quoted prices that are no more than they would be quoted as a new customer through the same channel. However, these rules have not altered consumers’ perceptions about fairness between new and existing customers. This is partly because of inflation, with all customers facing higher premiums, but our research also shows that consumers are ready to listen to assurances about how their policy is priced. A guarantee for existing customers that they won’t be charged more than a new customer would have a real impact on public trust. Insurers should not be afraid to make a virtue out of a necessity.”