Less than a third of people trust insurers, despite their relatively small role in the financial services sector, according to a PwC report.
The accountancy firm polled over 2,000 people from across the UK and found that only 27% trusted insurance providers and only 6% trust them more than a year ago.
Lee Clarke, insurance risk and regulator partner, said the lack of trust in insurance providers reflected a failure to articulate the value they are offering, leading to suspicions that their priority is to make short-term profits.
He said: 'Providers must find new ways to explain the services they are providing, encourage customers to voice their goals, priorities and expectations, and to respond to these.'
'Insurers are starting to ask their customer to publically review and share their experience of the company, whether good or bad, online. This openness can substantially improve company approval ratings with customers.'
PwC stressed that greater transparency had the single most impact on rebuilding consumer trust.