The industry's "laziness" is to blame for the commodisation of its products, said Hiscox chief executive Bronek Masojada.
Masojada was responding to a MORI poll which found that 53% of personal lines customers primary influence when choosing a policy was premium.
He said that the industry needed to communicate the value of its products. But laziness meant that it did not do this.
Masojada said: "Brokers and insurers don't read their policies. It is too much effort to read and explain the fine details [which may demonstrate the value] to the client. It is easier to focus on price not the quality of cover."
He said that the solution was down to individual companies to attract and retain the best people to better promote the merits of the products.
Biba chief executive Mike Williams said: "The industry has to find a way of de-commoditising personal lines insurance and better understand broker relationships."
J Sainsbury head of insurance and risk management Paul Howard said that the consumer "does not a successful relationship" with a commoditised product.
"There are more standard wordings than bespoke wordings in today's policies," said Howard.
