Financial services - the blame game The rotters. UK motor insurers, it seems, have been keeping premiums high by using overly expensive repair shops and more hire cars than necessary. The Office of Fair Trading has decided that the situation merits a full-scale investigation by the Competition Commission. Such murky conduct comes on the back of other misdemeanours by the financial services industry, from mis-selling loan payment insurance to persuading shopkeepers to buy complex derivatives. No wonder confidence in the sector is not high. It is not only Brits that do not trust the industry. According to CEB, an advisory firm, half of global consumers also have little or no confidence in financial providers. Sales are depressed, too. According to the Investment Company Institute of the US, net global sales of mutual funds, were $100bn in 2011 against $1.5tn in 2007. In insurance, data from Swiss Re show that global premiums fell in 2011 after growing between 3-4 per cent during most of the 2000s. Market conditions are partly to blame. Lousy equity markets are not the best backdrop for mutual funds, while austerity is crimping appetite for many financial products. But financial services companies should also look closer to home. Consumer confidence in the industry is lowest, says CEB, when it comes to its ability to offer "clear and simple policies and fees." That is not surprising given the obsession that financial services companies have with jargon. High charges and poor performance add to the mistrust. The industry has huge market opportunities worldwide. In developed markets, ageing populations need to fund their retirement. In emerging markets, people are just starting to get to grips with insurance and investment. If the companies cannot find a way to profit without ripping off their customers, they have only themselves to blame.