Fact: only 61 per cent of European consumers trust insurance companies compared with 87 per cent who trust supermarkets. Why? This is largely due to the low frequency of contact insurers have with their clients.

The EY’s 2014 Global Consumer Insurance Survey reveals that customers believe that stronger, two-way relationships may be the key to future market leadership in insurance.

Consumers indicate that they want more frequent, meaningful and personalised communications. Currently, few insurers are getting this right.

The industry needs to rethink how it communicates. In Europe, the level of consumer trust in banks also hovers at the same low level as that of insurance companies. Trust in banks took a severe hit during the financial crisis. But, by contrast with insurers, banks have regular interactions with their customers and, as a result, have the ability to rebuild trust when it is lost.

Insurers are relying on too few points of contact to build a long-term relationship based trust with their customers. Insurance products do really matter, especially when clients need them.

Quite simply, clients want insurers to anticipate their key decision points for them and insurers need to recognise that the right contact at the right time can make all the difference.

Locally, initiatives along these lines are being taken by various insurers such as promotion of healthier living, road assistance to safer driving, home assistance or better financial outcomes.

By delivering services beyond policies insurers have a real opportunity to transform consumer perceptions about the industry.Yet clients want more than this level of attention from their insurer.

Currently, interactions between insurers and their clients occur so rarely that any single point of contact can significantly shift the perception of insurers and brokers in the client’s mind. When they do communicate, the outcome is usually positive.

The ways and means through which insurers engage with their clients require significant attention. Consumers lack satisfaction with outbound communications. Digital and remote channels are fast reaching parity with traditional face-to-face channels and the vast majority of clients would consider any proposed channel rather than in-person for all types of transactions and inquiries.

It’s clear that insurers have yet to grasp the full force of the ‘direct-to-consumer’ model.

It’s clear that insurers have yet to grasp the full force of the ‘direct-to-consumer’ model

Even when there is a broker or an agent involved this is no guarantee that the client is getting the information he or she really needs. The insurance provider must ensure that all the clients receive this basic service, regardless of whether they are served through a broker.

As this business becomes more digital, insurers are increasingly better placed to deliver on this count.­

Consumers’ decisions are still motivated largely by price and material benefits. While the frequency and relevance of communication is a reason for closing or replacing a policy, the cost/terms of the policy is the biggest reason why people terminate or replace a policy. Interestingly, customers who switch insurers still retain overall positive views of their former provider.

Insurers have traditionally devoted a lot of energy to bringing new clients on board.

However, in the last few years they started to devote more attention to retaining their existing ones.

But a deeper analysis suggests there is a third important group – ex-customers who left their insurer for a non-emotional reason, such as over price scales but who still hold them in high regard and who the insurer could win back.

Evidence suggests that today there is not enough reaching out to consumers through special deals and promotions.

Perhaps remedying this state of affairs might go a long way to winning back past clients.

Shawn Falzon is a leader at EY Malta’s insurance assurance services.