Trust gap persists despite positive claims experiences, Allianz report finds
New research suggests perceptions of the insurance industry continue to lag behind customers’ real-world experiences, highlighting the need for greater transparency and reassurance
Travel insurers may need to do more to build customer confidence despite strong claims outcomes, after new research revealed a significant gap between public perceptions of the insurance industry and customers’ actual experiences.
Allianz UK’s inaugural Trust Issues benchmark found that while insurance is widely regarded as essential, many consumers remain sceptical about whether insurers will deliver when they need them most – a challenge that has particular relevance for travel insurers supporting customers during medical emergencies, trip disruption, and overseas assistance cases.
On Allianz UK’s 100-point trust index, consumers scored the insurance industry 56.2 while small and medium-sized enterprises (SMEs) gave it 60.5, both placing it within the benchmark’s “average” category. Insurance ranked ninth out of 13 sectors among consumers and eighth out of 11 among SMEs, behind the National Health Service (NHS), banking, and accountancy.
Despite those perceptions, the research found that customers’ experiences were generally far more positive than expected.
Around three-quarters of both consumers and SMEs believed insurers look for loopholes to avoid paying claims. However, more than 90% of respondents who had made a claim said it had been settled either in full or in part, rising to 95% among SMEs. More than eight in 10 claimants also described the process as fair, straightforward, and easy to understand.
The findings suggest the industry’s challenge is less about claims performance than about overcoming long-standing perceptions and communicating value before a claim ever occurs.
Perceptions continue to outweigh experience
For travel insurers, where policyholders often rely on support during stressful situations overseas, trust can directly influence how quickly customers contact their insurer, engage with assistance teams, and follow medical or travel advice.
Clear policy wording, transparent communication, and effective claims handling are therefore likely to remain key differentiators in an increasingly competitive market.
The benchmark also found that respondents consistently trusted their own insurer significantly more than the insurance industry overall, with trust scores more than 20 points higher among customers with direct experience of a provider.
When asked what builds trust, both consumers and SMEs ranked fairness, transparency and acting in customers’ best interests well ahead of innovation or technological capability.
Although respondents demonstrated a strong understanding of insurance risks and the consequences of underinsurance, emotional reassurance emerged as the weakest element of trust across both groups.
Colm Holmes, Chief Executive Officer of Allianz UK, said the findings demonstrated that the industry needed to focus on trust as well as technical expertise.
“People buy insurance for peace of mind, so it should concern all of us that so many still doubt it will be there when they need it,” he said.
“This trust gap matters,” he added. “When people lack confidence or understanding in insurance, they hesitate. They underinsure. They avoid difficult conversations about risk. And in some cases, they disengage from insurance altogether.”
The benchmark is based on research conducted by Edelman on behalf of Allianz UK between January and February 2026, involving 2,000 UK consumers and 1,026 SME decision-makers.
The findings reflect discussions at ITIC UK in Brighton earlier this year, where delegates explored how clearer communication and better-informed distribution could improve consumers’ understanding of travel insurance.