Customer satisfaction with risk and life insurance continues to decline, falling to 65.4% this year from 66.4% last year, according to a Roy Morgan survey.

In 2015 69.5% of consumers were satisfied. Roy Morgan says the sector continues to have the lowest customer satisfaction among major personal and household insurance lines.

Insuranceline is the best performer, with a satisfaction rating of 81.6%. Suncorp is second at 78.7%, followed by Real Insurance at 74.7%.

Suncorp’s satisfaction level was up 8.6 points, while Asteron and Zurich were up by 6.5 and 62 respectively.

AMP dropped by 1.6 to 64.3%. AMP is selling its life businesses to Resolution Life for $3.3 billion.

Westpac has the lowest level of customer satisfaction at 61.8%.

Among 1 million policyholders considered likely to change providers due to low satisfaction, only 226,000 did so in the year; 795,000 looked at alternative policies but did not switch.

Of those customers likely to switch providers, only 25.6% were satisfied with their insurer.

Roy Morgan Industry Communications Director Norman Morris says 86% of policies are renewed without customers investigating alternative policies.

Direct sales channels remain the most popular, at 36% of purchases, down from 42% three years ago. Only 9.3% of customers purchase life cover online. Buying cover through superannuation has grown to 26.5%.

Mr Morris says damaging revelations from the Hayne royal commission are likely to have contributed to the continuing fall in customer satisfaction.