The study by Co-op Insurance revealed that 66% of adults find insurance baffling, while 36% don’t understand how premiums are priced.

Almost three quarters (72%) said their insurer doesn’t give them enough detail about how the money they pay for insurance is used.

A quarter of those surveyed (27%) said they don’t understand why the price of insurance varies from year-to-year.

James Hillon, products and pricing director at Co-op Insurance, said: “The research findings show that people are not just confused about where their money goes when it comes to insurance, but that they do have an appetite to know more.

“We are looking at a range of options to explain how insurance pricing works to deliver information to consumers in more effective and easy to understand ways.”

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