British insurance executives believe the industry’s greatest strength is its ability to help customers when they need it, but say its greatest weakness is a poor reputation.

A survey of 57 industry chiefs conducted this month by the Association of British Insurers (ABI) and KPMG, and launched on the eve of the ABI’s biennial conference, also highlights the divergence between insurers’ and consumers’ views of the industry by asking them similar questions.

While both agree that insurance is “essential” and “complicated”, customers are much more likely to consider the industry “devious” and “unhelpful”.

ABI Director-General Otto Thoresen says insurers must engage with consumers in a more transparent manner and be clearer in what they are offering so there is a better chance of expectations being met.

More than a third of the executives say poor reputation is an issue for the industry although few believe the insurers’ actual performance in paying claims or its value for money are areas of weakness.

However, when consumers are asked about the industry’s greatest weaknesses, 29% list paying out claims fully and quickly, 24% say customer service after purchase and 12% list value for money.

Executives say the industry’s greatest strength is its ability to help consumers when they need it, and the report says this confirms that insurers believe strongly in the social value of their business, that their products are socially essential and it is their job to pay out claims.

“A challenge for the industry therefore is, how often does it say this?” the report says, noting

a much greater opportunity for the industry to “get more assertive about its value to the economy”.

The report also highlights an almost complete lack of support by industry leaders for new European Union regulation and regulatory bodies, with 98% of respondents saying they are very worried or somewhat worried that the EU does not understand or will undermine UK regulation. The report identifies “resigned cynicism” towards regulatory changes.

Mr Thoresen says the UK is at the forefront of many regulatory changes and is often a model for the rest of Europe.

KPMG’s Head of Insurance in the UK, Drew Fellowes, says the industry faces an enormous amount of change from both UK and European regulators and the challenge of rebuilding trust after the global financial crisis.