Australians’ regard for insurance companies is among the lowest in the world, according to a global consumer survey by Ernst & Young (E&Y).

People here trust insurance companies less than banks, the Reimagining Customer Relationships report says.

The poll of 24,000 insurance customers in 30 countries scores Australia’s trust level at 53%, compared with a global average of 70%.

This puts Australia on a par with the UK and Germany, while only South Koreans are less trusting of insurers, at 47%.

The most trusting consumers are from Latin America (81%) and the Middle East and India (79%).

E&Y Insurance Strategy and Customer Advisory Lead Walter Poetscher says the industry must rebuild trust or “risk losing market share to newer competitors and disruptors”.

“Balancing the changing expectations of consumers while finding new ways to increase loyalty and confidence is key,” he says.

The report says what matters most to consumers in relationships with insurers is value for money (64%) and the insurer being easy to deal with (57%) and easy to understand (49%).

Cost is the main reason for closing or replacing policies: 74% of Australian motor customers, 72% of home insurance customers and 52% of life customers cite this as a leading driver.   

Mr Poetscher says insurers should be wary of “alumni” customers, who leave their previous insurer for a “non-emotional reason” such as a high price but still hold it in high regard.

“This opens up opportunities for a savvy insurer to win back their business with relevant and timely propositions that meet their needs,” he said.