Insurance companies lag behind superannuation funds and fund managers when it comes to consumer trust, according to an investor research sentiment survey.
The findings conducted by research firm TNS, showed that 46 per cent of people rated superannuation funds as the most trusted organisation. This compared with 14 per cent who rated insurance companies as a trustworthy organisation.
"While insurance companies may be behind superannuation funds, they are still faced with a vast opportunity to engage with their consumers," TNS managing director Gary Lembit said.
"They will, however, have to address some common perceptions, if they are to change the mindset of the majority of consumers," he said.
The majority of consumers view insurance as too expensive, too complicated and unnecessary, the research found.
"As people see insurance as too complex they tend to think that life insurance is about tomorrow but they need to start thinking now about their cover," he said.
"The industry also contributes to this complexity. Many insurance marketing materials include complex and dense tables. You need to make insurance relevant and believable for people," Lembit said.
Income protection could be one way to get people to think about taking up comprehensive life insurance.
"For many people income protection is easier to understand. Once they understand this, there is greater awareness about life insurance," he said.
The research also showed that 30 per cent of people thought about taking up insurance when they changed jobs.
"This provides superannuation funds with the opportunity to get the issue of superannuation in front of new members and get them thinking now about insurance," he said.
