Public satisfaction with communications from insurers is falling more than in other sectors, a recent global survey of consumers has found.

The annual poll of more than 4000 people across 16 countries, including Australia, found that while satisfaction with communications across financial services, healthcare and government had fallen 10% since last year, insurers slumped by more.

Just half of respondents rated their insurers’ communications good or excellent, compared with 52% across the board, according to the study by customer engagement tech company Smart Communications.

Nearly two-thirds said they would switch providers if communications failed to meet their expectations. And 85% said communications directly affected how they felt about their favourite brands.

Almost two-thirds of consumers said they would end a relationship with a company if their data collection process was too difficult. That figure rose to 69% among Millennials and 66% among Gen Z, indicating a lower tolerance for friction and a tendency to quickly abandon brands among younger demographics.

The survey findings come amid increasing regulatory pressure on insurers in Australia to improve their communications.

An Australian Securities and Investments Commission report in August criticised general insurers for lack of transparency explaining premium rises.

And last month, the Life Code Compliance Committee sanctioned a life insurer after customers received annual notices that were inaccurate, incomplete or issued late.

Smart Communications director Aaron Everingham says insurers cannot afford to lose customers through poor communication.

“If you’re getting a piece of communication from your insurer about something as critical as life insurance and it is wrong, it is inaccurate and missing pieces of critical information, your trust and confidence level is going to drop significantly and the chance you’ll look for an alternative is high,” he said.