Insurers responding to consumer concerns

Overall consumer satisfaction with insurers rose to 86% in 2026Q1, returning to its highest recorded level since the survey began in 2019. Consumers said insurers had performed better across all nine survey themes for the second consecutive survey, with greater improvements in the areas of ‘loyalty’ (getting a fair deal), ‘confidence’, and ‘ease of doing business’. While consumers still consider ‘loyalty’ as the area with greatest opportunity to improve, the figure is now at an historical low, having fallen for three consecutive waves.  

The key actions consumers said firms could still take to build trust included:

·       Offering discounts for customers who stay with the same company

·       Ensuring premiums do not increase simply because a customer is no longer new

·       Handling complaints in a professional and fair manner

·       Recognising customer loyalty at renewal after a claim

·       Policies being clearly explained

Consumer satisfaction was identical across all age groups, at 86%. In addition, satisfaction with travel insurance policies has reached 88%, its highest ever level, while the proportion dissatisfied with their buildings and contents policy has fallen to its lowest recorded level – just 2% (see Table 1 & Chart 1).

There has also been a tick-up in reported satisfaction among SMEs, with the series reaching 84%, 2 percentage points higher than the last survey. Satisfaction is now at its highest recorded level. Performance ratings across all nine themes also increased from the last wave for SMEs, most notably for Control and Respect in relation to claims.

The key actions SMEs said firms could take to build trust included:

·       Ensuring SMEs know what their policy both covers and excludes

·       Offering discounts for SMEs who stay with the same company

·       Providing effective assistance and advice during a claim

·       Explaining policies clearly

·       Assessing SMEs’ risk individually, rather than using generic assumptions

Reflecting on the numbers, CII Group Policy & Public Affairs Director, Dr Matthew Connell, said: “The latest results indicate that insurers are making meaningful progress in addressing the issues that matter most to consumers and SMEs.

Rising satisfaction across every theme demonstrates the commitment to clearer communication, fairer outcomes, and stronger long‑term relationships. While there is still more to do, it’s encouraging to see trust being rebuilt through consistent action and customer focus.

One good example is the work that insurers have done to end the ‘loyalty penalty’, where existing customers subsidised new customers. This work has now been recognised by the public, four years after the FCA’s new rules on pricing were implemented. This shows just how long it takes to win back trust once it is lost. It also shows why the profession should be vigilant to make sure that issues like premium finance don’t undermine consumer trust in future.”