The Ann Arbor, Mich.-based American CustomerSatisfaction Index (ACSI) has released new dataindicating that customer satisfaction with the finance andinsurance sector is sliding.

The sector, which includes banks, credit unions, life insurance,health insurance and Internet investment services, dropped to itslowest score in a decade — 74.8 on ACSI's 100-point scale, adecrease of 0.4%.

"These are not happy times," said Claes Fornell, ACSI chairmanand founder. "Insurance companies and credit unions are joining thetroubling trend of deteriorating customer satisfaction that we'veseen throughout most of the U.S. economy. Corporations facingincreasing earnings and revenue pressure keep raising premiums andfees, which, combined with cost cutting to maintain profitability,is having a negative effect on service and on customersatisfaction. What might look good on the balance sheet in theshort term is not helpful for long-term prosperity."

But property and casualty insurers remained unchanged at 79 outof 100 for customer satisfaction. However, customers who bundledtheir auto and homeowners coverage together are more satisfied onaverage (78) than those purchasing only auto insurance (76) orhomeowners (75).

Smaller P&C insurers gained 5% to 83, followed by newentrant Farm Bureau at 80. The nation's biggest P&C insurer,State Farm, dropped 4% to 78, but GEICO remained in place at77.

ACSI newcomers AAA and Nationwide led the rest of the P&Cindustry, tying at 75. Progressive fell 3% to 74, while Allstatedropped 5% to 73.

Together, American Family, Liberty Mutual and Travelers, makingup the rest of the ACSI, came in at 73. Farmers showed the biggestdecline, falling 8% to the bottom of the category at 71.

Related: Insurance companies are best in the U.S. athandling customer calls

(Photo: Thinkstock)

Health insurers

Health insurance companies received millions of customersthrough the Affordable Care Act, but customer service ratings forthe industry dropped by 1.4% to end at 69. Leading only ISPs andthe pay TV industry, health insurers ended in the bottom five ofindustries included in the ACSI study.

Many new customers hold individual policies that provide aminimum of coverage with high deductibles. Customer satisfactionfor individual policy holders fell by 4% to 71, but ahead ofconsumers with group coverage, acquiring a score of 68. Grouppolicyholders who are offered a choice of plans scored 70 and areapparently more satisfied than those without choice (65).

"More Americans get group coverage through their employer, wherethey typically do not have a choice of provider," said DavidVanAmburg, ACSI Director. "As is generally the case, satisfactionis lower in industries where there is little or no choice."

Together, smaller health insurance companies dropped 3% to tienew entrants Humana and Kaiser Permanente at 71, followed by BlueCross and Blue Shield, gaining 1% to 70. Anthem gained 5% to 69 andAetna gained 5% to 68. UnitedHealth, last year's top-scoring largeinsurer, fell close to the bottom of the category, sliding 8% to66. Cigna came in last with an ACSI score of 60.

Life insurance

The life insurance industry slid 3.8% to 77 for the secondconsecutive year.

New ACSI entrant Thrivent Financial took the lead scoring 82,followed by Primerica (81) and New York Life (+3% to 79).

Northwestern Mutual gained 3% to 78, matching the average scorefor smaller life insurance companies, while Prudential lost 3% totie with life insurance newcomer Allstate at 77.

Mutual of Omaha debuted at 76, matching State Farm, measured inthis category for the first time. The largest insurer in thecountry, MetLife, slipped 1% to tie with new ACSI entrant LincolnFinancial at 75.

Farmers, posting its first life insurance score, staggeredbehind at 71.

Related: Customer satisfaction: Are insurers keeping up withrising expectations?