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THE INSURANCE PURCHASE DECISION-CANADA-APRIL 2018

Published By :

Mintel

Published Date : Apr 2018

Category :

Insurance

No. of Pages : N/A

As insurance distribution channels evolve, direct digital sales are bound to increase, resulting in more pressure on brokers to provide value-added advice and claims help.

Table of contents

OVERVIEW
Regional classifications
Income
EXECUTIVE SUMMARY
The issues
Auto, home and life insurance have the highest ownership rates
Figure 1: Insurance ownership, December 2017
Popularity of distribution channel is product dependent
Younger consumers and men are more likely to obtain quotes online
Figure 2: Channel through which a quote was obtained, by age, December 2017
Actual digital purchase levels are low
Figure 3: Purchase channels related to digital insurance, December 2017
Younger customers and men more open to using driving tracking devices
Figure 4: Agreement with statements related to insurance purchase, December 2017
The opportunities
Increasing life insurance ownership rates
Non-Chinese Asian Canadians have a lower ownership of some products
Figure 5: Insurance ownership (select), Asian Canadians vs overall, December 2017
Bundling discounts are attractive, particularly to older customers
Figure 6: Agreement with statements related to insurance purchase, December 2017
Around four in ten over-55s prefer to buy through brokers
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Blockchain and insurance
Impact of the sharing economy on insurance
Auto insurance and driverless cars
Smart homes and insurance
The evolving world of telematics
MARKET FACTORS
Canada’s population is aging
Figure 7: Population aged 0-14 and 65+, as of July 1, 1995-2035*
Opportunities and challenges come with an aging population
Figure 8: Canadian population, by age, 2016
Increased diversity means greater considerations for insurance companies
FinTech and life insurance (InsurTech)
MARKET PERSPECTIVE
Blockchain and insurance
Impact of the sharing economy on insurance
WHAT’S NEW?
Here's how insurers can prepare for driverless cars
The evolving world of telematics
Smart homes and insurance
KEY PLAYERS – WHAT YOU NEED TO KNOW
MasterCard taps Toronto start-up's technology to accelerate insurance-claim payments
OneEleven launches InsurTech growth program with Aviva Canada
Sun Life to add medical-marijuana coverage to group benefits plans
AXA using Ethereum’s blockchain for a new flight insurance product
AIG, IBM and Standard Chartered Bank pilot first multinational insurance policy powered by blockchain
Aviva partners with Chicago-based virtual claims company
Aha insurance launches
INNOVATIONS & INDUSTRY DEVELOPMENTS
MasterCard taps Toronto start-up's technology to accelerate insurance-claim payments
Two insurers collaborate with Amazon to bring the Alexa experience
Travel insurer for trip-disruption app
Canadian robo-advisor launches digital life insurance service
BMO Insurance rolls out first tech solution for its MGA channel
OneEleven launches InsurTech growth program with Aviva Canada
Sun Life to add medical-marijuana coverage to group benefits plans
AXA using Ethereum’s blockchain for a new flight insurance product
AIG, IBM and Standard Chartered Bank pilot first multinational insurance policy powered by blockchain
Aviva partners with Chicago-based virtual claims company
Aviva Canada creates Google Home app
Sun Life to offer virtual healthcare services
Allstate Canada reveals new water protection solution
MARKETING CAMPAIGNS
Welcome to Aha insurance
Figure 9: Aha insurance – What we are all about, September 2017
Sun Life’s lifestyle campaign
Figure 10: Sun Life’s “Life’s brighter under the sun” campaign, October 2017
Belairdirect hosts an ‘Insure-vention’
CAA renews push around travel insurance
Figure 11: CAA travel’s “Making Bad Days Good. And Good Days Better”, January 2018
Selected campaigns from Mintel Comperemedia
Desjardins bundling discount offer
Figure 12: Desjardins insurance bundling savings direct mail, April 2017
Life Insurance for healthy people
Figure 13: Health IQ, online advertisement, February 2018
THE CONSUMER – WHAT YOU NEED TO KNOW
Auto, home and life insurance have the highest ownership rates
Agents/brokers most popular channel for life insurance
One in five have obtained a quote through a company website
Limited interest in buying from robo-insurance agents
Actual digital purchase levels are low
Bank insurance subsidiaries appeal to Asian Canadians and younger consumers
Younger customers and men more open to using driving tracking devices
INSURANCE OWNERSHIP
Auto, home and life insurance have the highest ownership rates
Figure 14: Insurance ownership, December 2017
Around nine in ten over-45s have auto insurance
Figure 15: Insurance ownership (select), by age, December 2017
Home insurance is very age and income dependent
Quebecers have a higher ownership of life and renters insurance
Figure 16: Insurance ownership, Quebec vs overall, December 2017
Increasing life insurance ownership rates
Around half of over-65s have health insurance
Selling travel insurance to younger consumers is an opportunity
Mortgage insurance peaks among 35-44s and Atlantic Canadians
Increasing pet insurance ownership
Non-Chinese Asian Canadians have a lower ownership of some products
Figure 17: Insurance ownership (select), Asian Canadians vs overall, December 2017
INSURANCE DISTRIBUTION CHANNELS
Popularity of distribution channel is product dependent
Agents/brokers most popular channel for life insurance
Figure 18: Channels used for life insurance purchase, December 2017
Group sales through employers is the dominant channel for health insurance
Figure 19: Channels used for health insurance purchase, December 2017
Quebecers more likely to buy auto and home insurance directly
Figure 20: Channels used for auto and home/condo insurance purchase, December 2017
Travel insurance sales is more multi-channel
Figure 21: Channels used for travel insurance purchase, December 2017
DIGITAL RESEARCH & PURCHASE
One in five have obtained a quote through a company website
Figure 22: Channel through which a quote was obtained, December 2017
Almost half have obtained a quote online
Figure 23: TURF analysis – Digital research and purchase, January 2018
TURF analysis for digital research
Younger consumers and men are more likely to obtain quotes online
Figure 24: Channel through which a quote was obtained, by age, December 2017
Limited interest in buying from robo-insurance agents
Figure 25: Agreement with statements related to digital insurance purchase, December 2017
Actual digital purchase levels are low
Figure 26: Purchase channels related to digital insurance, December 2017
Men show relatively more interest in purchasing insurance using a mobile app
PURCHASE CONSIDERATIONS
Older consumers have more favourable views on brokers
Figure 27: Agreement with statements related to insurance purchase, December 2017
Around one in five customers find switching companies too much work
Younger customers, higher income earners and men more open to using driving tracking devices
Bank insurance subsidiaries appeal to younger consumers
Figure 28: Agreement with statement related to bank insurance subsidiaries, Asian Canadians vs overall, December 2017
PURCHASE ATTITUDES
Bundling discounts are attractive, particularly to older customers
Figure 29: Agreement with statements related to insurance purchase, December 2017
Older consumers less interested and Quebecers more interested in shopping around
Figure 30: Importance of shopping around for quotes, Quebec vs overall, December 2017
Men are keener on using websites for price quotes
Around four in ten over-55s prefer to buy through brokers
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Abbreviations and terms

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