Brokers have an important role to play as public trust in insurance falls

Over the last three months there has been a big shake-up in Australia’s top-10 most-trusted brands, according to the latest Roy Morgan Net Trust Score survey.

A reshuffling in Australia’s top-10 most trusted brands between July and October has seen two insurance providers drop ranks and one other fall out of the list altogether, according to the survey. The financial services sector is facing the ongoing Royal Commission which has revealed problematic behaivour and revelations that include the sale of junk insurance and premiums being charged to dead people.

NIBA Director and co-founder of Piranha Insurance Brokers, Heather Peirano has pointed out that it has not been indicated at any of the hearings that general insurance brokers are unprofessional and has emphasised that intermediaries have an increasingly important role to play in the post Royal Commission world.

She said, “It is important that brokers market themselves as professionals. Insurance brokers have not been identified as  distrustful and I believe we need to continue emphasising our competency, professionalism and educated staff to the wider community.”

“We are trusted advisors, qualified to help manage risks for our clients, we understand policies as well as PDS and are invaluable for clients during claims. We need to continue doing what we do best.”

Michele Levine, Roy Morgan CEO, said: “Trust is vital to the success of any business, but the key message of the Roy Morgan Net Trust Score survey is that growing distrust can be a disaster, leading to customer churn, loss of market share and in some cases a long slide into oblivion.

“Understanding what drives trust with customers – and just as importantly with potential customers – is essential to brands wishing to improve their Net Trust Score. Whether it’s Facebook, the big banks or our major utilities, directors and their management teams need to think about the social drivers of trust and distrust – ethics, believability, integrity and transparency.

Roy Morgan surveyed about 1200 adults from their consumer panel pool of 600,000 people for the July report, and surveyed almost 1000 people for the October release. A brand’s ranking is based on its “net trust score”. Roy Morgan calculates this score by asking respondents to name the brands they trust and the brands they distrust. The net trust score is worked out by subtracting the brand’s distrust score from its trust score.