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Trust in insurers rises while banks slide

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General insurers are the second most trusted financial services providers behind superannuation funds, while royal commission hearings have dented the standing of banks, a new survey shows.

The poll was conducted by financial services marketing agency Yell and researcher Ipsos.

Yell founding partner Nigel Roberts told results this year separate general and health insurance, identifying the former as the more trusted.

“General [insurance] is sitting pretty well in terms of its overall perceptions, which may be down to improvements in application and claims customer experience, meaning an overall better experience for the majority who don’t claim,” he said.

Consumers were asked to rank their trust in seven financial services sectors, with responses gathered last month from 1000 people.

Banks rank third, followed by health insurers, financial advisers, mortgage providers, investment brokers, and credit card providers/lenders. Insurance brokers were not included in the survey.

Yell says trust in banks and financial advisers has dropped following scandals and revelations of wrongdoing at the Hayne royal commission.

Banks recorded an 8% slide and financial advisers a 6% decline, while insurers gained 4.6%.

“This year’s results showed an acceleration in the gradual erosion of consumer trust that’s still not being recognised by the industry as a whole," Mr Roberts said.

The royal commission will focus on superannuation at hearings next week and will turn its attention to insurance in September.