According to the FCA’s 2024 Financial Lives Survey, 66% of UK consumers have low trust in the insurance sector. That makes it one of the least trusted parts of retail financial services.
The figure was quoted by Sarah Pritchard, the FCA’s deputy chief executive, in a speech to the Association of British Insurers in February 2026. The full speech is on the FCA website if you want to read it in full.
That 66% figure covers a lot of ground. Some of it is about price. Some of it is about claims experiences, either personal or second-hand. Some of it is about the feeling that paperwork is designed to trip you up rather than pay you out. Whatever the cause, the practical effect is the same: a lot of people are making decisions about cover they quietly suspect won’t come through when they need it most.
It doesn’t have to be that way. There are insurers and brokers who do the job properly, and knowing what to look for is half the battle. Here are four things worth thinking about when you’re choosing who to trust with your cover.
1. Ask what happens at claim time
Policies are bought on premiums and judged on claims. Those two conversations often happen years apart, which is precisely why people get caught out. A good broker or advisor will talk you through the claims process before you sign, so you know exactly what happens if you need to use the cover.
The FCA is aware of this. Its recent response to a super-complaint from consumer group Which? specifically calls out claims handling as an area needing improvement, and notes that 79% of people who make a claim are satisfied with how it’s handled. That 79% is higher than you might expect, but it leaves one in five with a bad experience, which is still a lot of people and a lot of reason to ask questions up front.
2. Look for transparency about cover
The cheapest policy and the right policy are rarely the same thing. A good advisor will walk you through what’s actually covered, what isn’t, and what the policy wording means in plain English. They should be comfortable explaining exclusions and willing to set headline figures in context.
FCA research found that 31% of consumers feel there isn’t enough information available to judge the quality of different policies properly. That’s a gap a good broker or advisor closes for you.
3. Check accessibility before you need it
One of the quietest indicators of a good insurance relationship is whether you can actually reach someone. If a policy is only serviced through an online portal, a webchat, or a call centre that routes you through eight menu options, the moment of truth is likely to be stressful. If your point of contact is a named person who knows your situation, the moment of truth is likely to be smoother.
This is especially true for anyone running a business, managing property, or juggling household cover alongside life and income protection. The more moving parts you have, the more it matters that someone has the whole picture.
4. Mind the protection gap
FCA data shows that 26% of people hold no insurance at all, and 58% hold no pure protection products such as life cover or income protection. The regulator has called this protection gap significant, and has launched a market study into how pure protection products are being sold.
A lot of people who think they’re covered aren’t, and a lot of people who could reasonably afford cover haven’t been walked through what’s available to them. A good advisor will help you understand where your actual exposures are and recommend cover that matches them.
What trust actually looks like in practice
Trust in financial services is built in small, consistent ways over long periods of time. It looks like proper advice at the start, clear communication through the life of the policy, a named contact when something changes, and a broker or advisor who picks up the phone when a claim happens.
It isn’t glamorous. It is, however, what turns a mistrusted transaction into a relationship that actually works when you need it to.
If you’d like to talk through your current cover or review your protection arrangements, please get in touch.
