Customers don’t trust insurance companies and don’t understand complicated policies. That was the message from Simon Green, Head of General Insurance and Protection at the UK Financial Conduct Authority when he addressed brokers at an insurance regulation conference in London recently.

Green said that although insurers were not as deeply scarred as the banks by the financial crisis, they had suffered in the eyes of consumers. He pointed out, “Our customer research indicates that the insurance industry may be critically misunderstood by its customers, and worse, customers lack confidence in insurers and at best see buying insurance as a necessary evil business transactional rather than one that can add value to their lives.” Green went on to say, “There is little or no relationship between customers and motor insurance providers. This research included brokers. So it isn’t only a challenge for insurers.’

Green called for a more open and transparent approach to business that could help to restore customer confidence. He commented, “We all want customers to see the value in insurance and buy it with confidence.”