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Health Insurance - Canada - July 2014

Published By :

Mintel

Published Date : Jul 2014

Category :

Health Insurance

No. of Pages : 249 Pages

Leveraging themes of peace of mind and risk avoidance are factors which could boost engagement with the market. The increased use of positive associations such as these could make Canadians think more positively rather than negatively about health insurance.
Table of Content

Introduction

Definition
Excluded
Abbreviations

Executive Summary

The market
Figure 1: Forecast of values of premiums in the Canadian health insurance market, 2009-19
Market factors
Canadian economy to pick up speed, but many risks remain
Population changes signal greater opportunity for health insurance
Increased longevity does not necessarily equate to better health
The rise of HSAs
Companies, brands and innovation
Brand communication
Brand research and social media
The consumer
Satisfaction with health care is reasonably strong
Figure 2: Satisfaction with components of government health care, May 2014
Prescription drug coverage and dental are the most commonly owned insurance types
Figure 3: Ownership of supplemental health insurance, May 2014
Sun Life and Manulife dominate but the rest of the market is fragmented
Personal life stories and recommendations from friends/family are strong purchase triggers
Peace of mind and risk avoidance are strong reasons why people buy health insurance
Figure 4: Attitudes towards supplemental health insurance, May 2014
What we think

Issues and Insights

Building trust through greater clarity and transparency
The facts
The implications
Winning over the Chinese Canadian consumer
The facts
The implications
Marketing the peace of mind and risk avoidance themes
The facts
The implications
Engaging the disengaged consumer
The facts
The implications

Trend Application

Trend: Help Me Help Myself
Trend: Prepare for the Worst
Trend: Make it Mine

Market Drivers

Key points
Economic overview
IMF expects the Canadian economy to pick up speed, but many risks remain
Figure 5: Canada’s GDP, by quarter, 2008-14
Figure 6: Household disposable incomes and savings in Canada, 2008-14
Figure 7: Canada’s unemployment rate, by gender, 2008-14
British Columbia has the highest net worth
Figure 8: Canada median net worth, by province, 2012
Demographic overview
Population count and growth in Canada
Figure 9: Share of population of Canada, by territory/province, 2014
Canada’s population is expected to age in the coming years
Figure 10: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
Figure 11: Projected trends in the age structure of the Canada population, 2014-19
Minority groups account for less than 20% of Canada’s population
Figure 12: Estimated share of population of Canada, by ethnicity, 2014
Health overview
Obesity and sedentary lifestyles
Alzheimer’s/dementia
Smoking
Stroke
Living longer but not necessarily healthier
Figure 13: Average life expectancy* and health-adjusted life expectancy (HALE)**, by disease status and gender, 2013
Overview of the Canadian health care system
Government Health care expenditure
Figure 14: Benchmark performance on wait times for key procedures, 2013
Increasing popularity of Health Spending Accounts

Strengths and Weaknesses

Strengths
Weaknesses
Market Size and Forecast

Key points
Canada’s health insurance market continues to grow steadily
Figure 15: Value of health insurance premiums in Canada, 2009-19
Forecast
Figure 16: Forecast of values of premiums in the Canadian health insurance market, 2009-19
Forecast methodology

Companies and Products

Manulife
Overview and company information
Recent activity and innovation
Sun Life
Overview and company information
Recent activity and innovation
Great-West Life
Overview and company information
Recent activity and innovation
Desjardins
Overview and company information
Recent activity and innovation
Standard Life
Overview and company information
Recent activity and innovation
Blue Cross
Overview and company information
Recent activity and innovation

Brand Communication and Promotion

Key points
Spike in health insurance acquisition mail volume
Figure 17: Health insurance acquisition mail volume (in millions), by quarter, 2012-14
BMO, CIBC and Blue Cross remained the top mailers
Figure 18: Top health insurance acquisition mailers, by quarter, 2012-14
Featured campaigns from Mintel Comperemedia
Canadian Automobile Association Health and Dental Insurance from Manulife
Chamber of Commerce Group Insurance Plan
Alberta Blue Cross
Brand Research and Social Media

Key points
Market overview
Key social media metrics
Figure 19: Key social media metrics, June 2014
Brand usage and awareness
Figure 20: Brand usage and awareness for selected health insurance providers, June 2014
Interactions with health insurance providers
Figure 21: Interactions with selected health insurance providers, June 2014
Leading recent online campaigns
What we think
Online conversations
Figure 22: Online conversations for selected health insurance providers, by day, 12 June 2013-12 June 2014
Where are people talking about health insurance providers?
Figure 23: Online conversations for selected health insurance providers, by page type, 12 June 2013-11 June 2014
What are people talking about?
Figure 24: Topics of conversation around selected health insurance providers, 12 June 2013-11 June 2014

The Consumer – Overall Satisfaction with Government Health Care

Key points
Room for improvement for provincial health care systems
Figure 25: Overall satisfaction with government health care, May 2014
Manitobans are the most satisfied while Quebecers are the least satisfied
Figure 26: Satisfaction with government health care by region, May 2014

The Consumer – Satisfaction with Components of Government Health Care

Key points
Quality of care and health care facilities rate the highest for satisfaction
Figure 27: Satisfaction with components of government health care, May 2014
Around a third of Canadians are satisfied with various other components
Electronic access and waiting times are notable areas for improvement
Figure 28: Main drivers of dissatisfaction (% unsatisfied) in Quebec vs. Canada, May 2014
Higher income earners also more likely to drive dissatisfaction
Figure 29: Dissatisfaction with selected components of the health care system, high vs. low income groups, May 2014

The Consumer – Ownership of Supplemental Health Insurance

Key points
Prescription drug coverage and dental are the most commonly owned insurance types
Figure 30: Ownership of supplemental health insurance, May 2014
One in five Canadians have five or more types of supplemental health insurance
Figure 31: Repertoire of ownership of types of supplemental health insurance, May 2014
25-44s are key for supplementary health care providers
Figure 32: Ownership of supplemental health insurance, by age, May 2014
Men have higher rates of direct purchase
Figure 33: Health insurance purchased directly through the insurer, by gender, May 2014
CHAID analysis: Methodology
Sub-groups more likely to own supplemental health insurance
Figure 34: Supplemental health insurance coverage – CHAID tree output, July 2014

The Consumer – Choice of Provider

Key points
Sun Life and Manulife stand apart in a fragmented market
Figure 35: Choice of provider of health insurance, May 2014
Regionality brings out some discrepancies
Activity map
Figure 36: Activity map and health, by provider of insurance, May 2014
The Consumer – Purchase Decision Factors

Key points
Most Canadians rely on information from their employer
Figure 37: Purchase decision factors for supplemental health insurance, May 2014
Figure 38: Purchase decision factors, by gender, May 2014

The Consumer – Additional Purchase Triggers

Key points
Incentivized and customisable health care plans are the most likely triggers to purchase additional insurance
Figure 39: Purchase triggers that prompt buying additional supplemental health insurance, May 2014
Access to best-in-class treatment also resonates
Flexibility and relatability work well with younger Canadians
Figure 40: Triggers to purchase additional supplemental health insurance: comparison of the 18-24 age segment to total, May 2014
Tackling the non-converts

The Consumer – Attitudes towards Supplemental Health Insurance

Key points
Summary of attitudes towards supplemental health insurance
Figure 41: Attitudes towards supplemental health insurance, May 2014
Canadians would like more clarity regarding their coverage
Figure 42: Attitudes regarding the level of clarity and transparency of health insurance plans, May 2014
Peace of mind and risk avoidance are key selling features
Figure 43: Attitudes regarding the emotional impact of health insurance, May 2014
Mixed views of health incentive and flex-plans for many Canadians
Figure 44: Attitudes regarding health incentive and flex-plans, May 2014
Younger Canadians are most likely to question the value and relevance of supplemental health insurance
Figure 45: Attitudes towards value and relevance of supplemental health insurance, May 
2014

The Consumer – Health Insurance and Chinese Canadians

Key points
Room for improvement when it comes to Chinese Canadians’ satisfaction with the health care system
Figure 46: Satisfaction with components of government health care: Chinese Canadians against Whites/Caucasians, May 2014
Chinese Canadians’ insurance ownership rates higher than Whites/Caucasians’
Figure 47: Health insurance ownership rates: Chinese Canadians against Whites/Caucasians, May 2014
Manulife and Sun Life become even more dominant
Figure 48: Choice of insurance provider: Chinese Canadians against Whites/Caucasians, May 2014
Recommendations and family can resonate strongly with Chinese Canadians
Figure 49: Additional purchase triggers: Chinese Canadians against Whites/Caucasians, May 2014
Flex-plans could resonate with Chinese Canadians
Figure 50: Attitudes towards health insurance: Chinese Canadians against Whites/Caucasians, May 2014

The Consumer – Target Groups

Key points
Four target groups
Figure 51: Target groups, May 2014
Precisionists (27%)
Skeptics (20%)
Independents (19%)
Disengaged (34%)

Appendix – Market Drivers

Figure 52: Life expectancies at birth and age 65, by gender, Canada, 1901-2012

Appendix – Market Size and Forecast

Figure 53: Best- and worst-case forecasts for the health insurance market, by value, 2014-19

Appendix – Brand Research and Social Media

Brand usage and awareness
Figure 54: Brand usage and awareness, May 2014
Figure 55: CIBC usage and awareness, by demographics, May 2014
Figure 56: BMO usage and awareness, by demographics, May 2014
Figure 57: Blue Cross Blue Shield usage and awareness, by demographics, May 2014
Figure 58: Sun Life usage and awareness, by demographics, May 2014
Figure 59: Manulife usage and awareness, by demographics, May 2014
Figure 60: Group Medical Services (GMS) usage and awareness, by demographics, May 2014
Activities done
Figure 61: Activities done, May 2014
Brand analysis
Figure 62: Brand name key social media metrics – BMO, June 2014
Figure 63: Brand name key social media metrics – CIBC, June 2014
Figure 64: Brand name key social media metrics – Sun Life, June 2014
Figure 65: Brand name key social media metrics – Manulife, June 2014
Figure 66: Brand name key social media metrics – Blue Cross, June 2014
Figure 67: Brand name key social media metrics – GMS, June 2014

Appendix – The Consumer – Overall Satisfaction with Government Health Care

Figure 68: Overall satisfaction with government health care, May 2014
Figure 69: Overall satisfaction with government healthcare, by demographics, May 2014

Appendix – The Consumer – Satisfaction with Components of the Government Health Care System

Figure 70: Satisfaction with components of government health care, May 2014
Figure 71: Satisfaction with government health care – Quality of care received from health professionals and Quality of health care facilities (ie. surgeries, equipment etc), by demographics, May 2014
Figure 72: Satisfaction with government health care – Coverage of services and Prescription drug plan, by demographics, May 2014
Figure 73: Satisfaction with government health care – Accessibility of health care and quality of communication, by demographics, May 2014
Figure 74: Satisfaction with government health care – Continuity and coordination of care and Electronic access to health care, by demographics, May 2014
Figure 75: Satisfaction with government – Wait times for appointments, by demographics, May 2014

Appendix – The Consumer – Ownership of Supplemental Health Insurance

Figure 76: Ownership of types of supplemental health insurance, May 2014
Figure 77: Ownership of types of supplemental health insurance – Prescription drug coverage, by demographics, May 2014
Figure 78: Ownership of types of supplemental health insurance – Dental insurance, by demographics, May 2014
Figure 79: Ownership of types of supplemental health insurance – Optical insurance, by demographics, May 2014
Figure 80: Ownership of types of supplemental health insurance – Out-of-country/travel insurance that covers any medical costs incurred while outside of Canada, by demographics, May 2014
Figure 81: Ownership of types of supplemental health insurance– Emergency ambulance services, by demographics, May 2014
Figure 82: Ownership of types of supplemental health insurance – Accidental death and dismemberment (AD&D) – Pays a set amount to beneficiaries in the event of your death or if you are unable to work due to a disability, by demographics, May 2014
Figure 83: Ownership of types of supplemental health insurance – Long-term care insurance, by demographics, May 2014
Figure 84: Ownership of types of supplemental health insurance – Short-term disability insurance, by demographics, May 2014
Figure 85: Ownership of types of supplemental health insurance – Critical illness and life insurance (CI and life), which pays out a lump sum upon the diagnosis of certain medical conditions, by demographics, May 2014
Figure 86: Ownership of types of supplemental health insurance – International health insurance, which covers the cost of private medical treatment when living/working abroad, by demographics, May 2014
Figure 87: Ownership of types of supplemental health insurance – Health cash plan, which pays cash towards the cost of everyday health treatment, by demographics, May 2014
Figure 88: Repertoire of ownership of types of supplemental health insurance, May 2014
Figure 89: Repertoire of ownership of types of supplemental health insurance, by demographics, May 2014
Figure 90: Supplemental health insurance coverage – CHAID table output, July 2014

Appendix – The Consumer – Choice of Provider

Figure 91: Provider of supplemental health insurance, May 2014
Figure 92: Leading providers of supplemental health insurance, by demographics, May 2014
Figure 93: Other providers of supplemental health insurance, by demographics, May 2014

Appendix – The Consumer – Purchase Decision Factors

Figure 94: Purchase decision factors for supplemental health insurance, May 2014
Figure 95: Leading purchase decision factors for supplemental health insurance, by demographics, May 2014
Figure 96: Other purchase decision factors for supplemental health insurance, by demographics, May 2014

Appendix – The Consumer – Additional Purchase Triggers

Figure 97: Purchase triggers for additional supplemental health insurance, May 2014
Figure 98: Leading purchase triggers for additional supplemental health insurance, by demographics, May 2014
Figure 99: Next most popular purchase triggers for additional supplemental health insurance, by demographics, May 2014
Figure 100: Other purchase triggers for additional supplemental health insurance, by demographics, May 2014

Appendix – The Consumer – Attitudes towards Supplemental Health Insurance

Figure 101: Attitudes towards supplemental health insurance, May 2014
Figure 102: Agreement with the statements ‘I would prefer health care plans that state clearly what level of coverage I am getting’ and ‘I believe the costs for supplemental health care should be lower’, by demographics, May 2014
Figure 103: Agreement with the statements ‘Supplemental health insurance helps you avoid financial risk during periods of illness and injury’ and ‘Having supplemental health insurance gives me peace of mind as I grow older’, by demographics, May 2014
Figure 104: Agreement with the statements ‘Flex-plans are a smarter choice because they allow you to pick the coverage you want’ and ‘ plans that reward you for leading a healthy lifestyle are fairer than traditional ones’, by demographics, May 2014
Figure 105: Agreement with the statements ‘Incentivised health plans are pointless because illness can affect anyone, even those leading a healthy lifestyle’ and ‘I don\'t think health incentive programmes are measured carefully enough’, by demographics, May 2014
Figure 106: Agreement with the statements ‘Supplemental health insurance is only worth the money if one is prone to illness’ and ‘Supplemental health insurance is only relevant to those who can\'t afford to be off work’, by demographics, May 2014
Figure 107: Agreement with the statements ‘Supplemental health insurance is not worth the cost’ and ‘Non-flex-plans are better because they cover everything’, by demographics, May 2014

Appendix – The Consumer – Health Insurance and Chinese Canadians

Figure 108: Selected demographics by total population against Chinese Canadians, May 2014

Appendix – Consumer – Target Groups

Figure 109: Target groups, May 2014
Figure 110: Target groups, by demographics, May 2014
Figure 111: Overall satisfaction with government health care, by target groups, May 2014
Figure 112: Satisfaction with government health care, by target groups, May 2014
Figure 113: Ownership of types of supplemental health care, by target groups, May 2014
Figure 114: Provider of supplemental health care, by target groups, May 2014
Figure 115: Purchase decision factors for supplemental health insurance, by target groups, May 2014
Figure 116: Purchase triggers for additional supplemental health insurance, by target groups, May 2014
Figure 117: Attitudes towards supplemental health insurance, by target groups, May 2014

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