A top reinsurer has urged UK life insurance firms to get rid of the difficulties that surround the sector’s terminology, services and products.

The group also said that due to the financial downturn, it was now more important than ever for the industry to improve its engagement with customers.

While consumers display a positive attitude to receiving independent advice on savings or protection cover, they show limited willingness to pay fees for it. They also struggle to identify the names of independent financial adviser companies.

The reinsurer’s findings are supported by extensive research among more than 1000 UK consumers on their financial and protection needs.

Asked for the reasons against buying protection insurance cover, 43% said they do not need life insurance and 40% believe they do not need income protection. Cost was the overall reason why cover was not brought.

The group said that changes must be made, if the sector is to survive the downfall.