Consumer confidence in financial services, regulation and investment returns are the major worries for CEOs across the sector, according to a survey.

“The sector is aware that it needs to restore consumer trust and improve the long-term sustainability of the industry so that it can meet the needs of clients throughout their working lives and into retirement,” the 14th annual CEO survey by the Financial Services Council (FSC) and technology company DST says.

Responses were sought from life insurance, superannuation, advice, trustee and funds management members of the FSC, with written questions followed up with interviews and discussion forums.

The survey finds the sector is suffering from regulation fatigue, with reforms proving costly to implement while distracting companies from other potentially revenue-generating projects.

Some 82% of respondents say client data will improve products, increase customer service and contribute to strategic thinking, while 77% think the sector needs to do more to meet retiree needs.

While 73% say innovation in their firm is mainly focused on increasing revenues, the same number think technology is key for delivering innovative financial services products.

“The most successful financial services firms are those that are able to anticipate the solutions their customers need not just today, but in the years ahead,” the report says.

Life insurance CEOs nominated declining claims experience, return on capital and consumer confidence as the three top concerns for their sector’s prospects.