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Home, Auto and Travel Insurance - Canada - June 2015

“The challenge for home, auto and travel insurers is multi-faceted, with bottom-line results relying on factors such as attracting new customers. Making insurance easier to purchase by simplifying insurance language and providing consumers with easy step-by-step procedures online, along with allowing consumers to choose what coverage suits their needs, will allow for the greater chance of affinity and increased usage from under-penetrated demographics.”
Andrew Zmijak, Research Analyst, Consumer Behaviour and Social Media

The report focuses on the following:

  • Usage-based insurance transforming the landscape of auto insurance in Canada
  • Reaching the disengaged consumer
  • Gaining trust key to consumer loyalty
  • Increasing ownership of travel insurance

Canada’s population is aging, with significant growth in the over-65 population expected in the coming years. Demand for homeowners, auto/motorcycle and travel insurance products are set to continue rising, supported by a relatively stable economy, immigration into Canada and the rising net worth of Canadian households.

Auto insurance is mandatory in Canada and although a few of the provinces have government-owned auto insurance providers, the market for auto insurance is expected to be steady. Similarly, a strong housing market should ensure robust demand for products such as homeowners and mortgage insurance. Although brokers continue to be the predominant channel for most insurance products, there is plenty of scope for using mobile applications to sell short-term insurance solutions and individualized products, especially in the travel insurance category.

This report covers the drivers of the home, auto and travel insurance market in Canada and contains consumer data relating to ownership, choice of provider, purchase channel, choice factors, renewal behaviour and attitudes towards insurance purchase.

This report covers the ownership of and the factors that influence the purchase of major personal homeowners, auto/motorcycle, and travel insurance products.

Excluded:

Business and commercial insurance products and solutions are excluded. Provincial government run insurance organizations are excluded from the study, as the focus of the report is on personal insurance products and services from the private sector.

 

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Table of contents

  1. Introduction

      • Definition
        • Excluded
          • Abbreviations
          • Executive Summary

              • Market drivers
                • Canada’s population is aging and will continue to do so in the coming years
                  • Figure 1: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
                • The consumer
                  • Auto and home insurance ownership are very common
                    • Figure 2: Type of insurance ownership, March 2015
                  • Intact Insurance leads ownership of auto/motorcycle and homeowners insurance, while regionality greatly affects ownership overall
                    • Figure 3: Name of insurance provider, March 2015
                  • Consumers are choosing a broker/financial advisor for their insurance needs
                    • Figure 4: How insurance was purchased, March 2015
                  • Cost is of main concern when considering insurance
                    • Figure 5: Factors considered when choosing insurance, March 2015
                  • More than three quarters of consumers automatically renew their insurance policies
                    • Figure 6: Insurance renewal behaviour when existing insurance expires or comes up for renewal, March 2015
                  • Over-45s prove more onerous about their insurance needs
                    • Figure 7: Reasons for shopping around for an insurance policy, March 2015
                  • Over three quarters of consumers believe it is important to re-evaluate insurance needs after major life events
                    • Figure 8: Attitudes towards insurance, March 2015
                  • What we think
                  • Issues and Insights

                      • Usage-based insurance transforming the landscape of auto insurance in Canada
                        • The facts
                          • The implications
                            • Reaching the disengaged consumer
                              • The facts
                                • The implications
                                  • Gaining trust key to consumer loyalty
                                    • The facts
                                      • The implications
                                        • Increasing ownership of travel insurance
                                          • The facts
                                            • The implications
                                            • Trend Application

                                                • Return to the Experts
                                                  • Prove It
                                                    • Nouveau Poor
                                                    • Market Drivers

                                                      • Key points
                                                        • Economic overview
                                                          • Overall negative impact of lower oil prices on the Canadian economy
                                                            • Figure 9: Canada’s GDP, by quarter, Q4 2008-Q4 2014
                                                            • Figure 10: Household disposable incomes and savings in Canada, by quarter, Q4 2008-Q4 2014
                                                            • Figure 11: Canada’s unemployment rate, by gender, 2008-15
                                                          • Impact of interest rates, inflation and exchange rates
                                                            • Figure 12: Inflation rates in Canada (%), 2004-14
                                                          • Bank of Canada keeps interest rate steady at 0.75%
                                                            • Figure 13: Canada bank rate by month, 2005-15
                                                          • Outlook on the real estate and housing market
                                                            • Consumer confidence
                                                              • Figure 14: Consumer Confidence Index, monthly, January 2008-February 2015
                                                            • Household debt in Canada
                                                              • Demographic overview
                                                                • Population count and growth in Canada
                                                                  • Figure 15: Share of population of Canada, by territory/province, 2015 (projected)
                                                                • Minority groups account for less than 20% of Canada’s population
                                                                  • Figure 16: Estimated population of Canada, by ethnicity, 2011
                                                                • Canada’s population is expected to age in the coming years
                                                                  • Figure 17: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
                                                                  • Figure 18: Projected trends in the age structure of the Canada population, 2014-19
                                                              • Who’s Innovating?

                                                                • Key points
                                                                  • Esurance comes to Canada
                                                                    • Figure 19: Esurance, online advertisement, January 2015
                                                                  • Usage-based auto insurance changing the way consumers drive
                                                                    • Figure 20: The Personal, direct mail, August 2014
                                                                    • Figure 21: Belairdirect – Bumpr app, Quebec, direct mail, July 2014
                                                                  • Intrepid’s innovative 24/7 Travel Navigator app
                                                                  • Market Size and Forecast

                                                                    • Key points
                                                                      • Auto insurance
                                                                        • Homeowners insurance
                                                                          • Travel insurance
                                                                            • Auto insurance market to see moderate growth
                                                                              • Figure 22: Auto net written premiums, Canada, 2009-19
                                                                            • Personal property insurance to grow between 5-7% in the next few years
                                                                              • Figure 23: Personal property net written premiums, Canada, 2009-19
                                                                              • Figure 24: Forecast of auto net written premiums, by value, 2009-19
                                                                              • Figure 25: Forecast of personal property net written premiums, by value, 2009-19
                                                                            • Forecast methodology
                                                                            • Companies and Products

                                                                                • Intact Insurance
                                                                                  • Overview and company information
                                                                                    • Recent activity
                                                                                      • TD Financial Group
                                                                                        • Overview and company information
                                                                                          • Recent activity
                                                                                            • Aviva Canada
                                                                                              • Overview and company information
                                                                                                • Recent activity
                                                                                                  • RBC
                                                                                                    • Overview and company information
                                                                                                      • Recent activity
                                                                                                        • CAA
                                                                                                          • Overview and company information
                                                                                                            • Recent activity
                                                                                                              • Desjardins
                                                                                                                • Overview and company information
                                                                                                                  • Recent activity
                                                                                                                  • Social Media – Home, Auto and Travel Insurance

                                                                                                                    • Key points
                                                                                                                      • Market overview
                                                                                                                        • Key social media metrics
                                                                                                                          • Figure 26: Key social media metrics, June 2015
                                                                                                                        • Brand usage and awareness
                                                                                                                          • Figure 27: Brand usage and awareness for selected home, auto and travel insurance brands, March 2015
                                                                                                                        • Interactions with home, auto and travel insurance brands
                                                                                                                          • Figure 28: Interactions with selected home, auto and travel insurance brands, March 2015
                                                                                                                        • Social media activity and campaigns
                                                                                                                          • What we think
                                                                                                                            • Online conversations
                                                                                                                              • Figure 29: Online conversations for selected home, auto and travel insurance brands, by day, May 20, 2014-May 20, 2015
                                                                                                                            • Where are people talking about home, auto and travel insurance brands?
                                                                                                                              • Figure 30: Online conversations for selected home, auto and travel insurance brands, by page type, June 20, 2014-June 20, 2015
                                                                                                                            • What are people talking about?
                                                                                                                                • Figure 31: Topics of conversation around selected home, auto and travel insurance brands, June 20, 2014-June 20, 2015
                                                                                                                            • The Consumer – Insurance Ownership

                                                                                                                              • Key points
                                                                                                                                • Auto and home insurance ownership are very common
                                                                                                                                  • Figure 32: Type of insurance ownership, March 2015
                                                                                                                                • Age is the principal determinant of insurance ownership
                                                                                                                                  • Figure 33: Type of insurance ownership, by age, March 2015
                                                                                                                                  • Figure 34: Type of insurance ownership, by household income, March 2015
                                                                                                                                • Intact Insurance leads ownership of auto/motorcycle and homeowners insurance, while regionality greatly affects ownership overall
                                                                                                                                  • Figure 35: Name of insurance provider, March 2015
                                                                                                                                • Auto/Motorcycle
                                                                                                                                  • Homeowners
                                                                                                                                    • Travel
                                                                                                                                    • The Consumer – Insurance Purchase Decision

                                                                                                                                      • Key points
                                                                                                                                        • Consumers are choosing a broker/financial advisor for their insurance needs
                                                                                                                                          • Figure 36: How insurance was purchased, March 2015
                                                                                                                                        • Canadian women are more likely to use ‘other’ sources of insurance
                                                                                                                                            • Figure 37: Insurance purchased via ‘other’ sources, by age and gender, March 2015
                                                                                                                                        • The Consumer – Choice Factors

                                                                                                                                          • Key points
                                                                                                                                            • Cost is of main concern when considering insurance
                                                                                                                                              • Figure 38: Factors considered when choosing insurance, March 2015
                                                                                                                                            • Younger consumers place more credence on insurance recommendations
                                                                                                                                              • Figure 39: Factors considered when choosing insurance, by age, March 2015
                                                                                                                                          • The Consumer – Insurance Renewal Behaviour

                                                                                                                                            • Key points
                                                                                                                                              • More than three quarters of consumers automatically renew their insurance policies
                                                                                                                                                • Figure 40: Insurance renewal behaviour when existing insurance expires or comes up for renewal, March 2015
                                                                                                                                              • Over-45s prove more onerous about their insurance needs
                                                                                                                                                • Figure 41: Reasons for shopping around for an insurance policy, March 2015
                                                                                                                                            • The Consumer – Attitudes towards Insurance

                                                                                                                                              • Key points
                                                                                                                                                • Over three quarters of consumers believe it is important to re-evaluate insurance needs after major life events
                                                                                                                                                  • Figure 42: Attitudes towards insurance, March 2015
                                                                                                                                                • Males 18-34-years-old are more likely to gamble with insurance
                                                                                                                                                  • Figure 43: Select attitudes towards insurance, March 2015
                                                                                                                                                • Incentives are key for consumers when shopping around for insurance
                                                                                                                                                  • Figure 44: Cost/incentive related attitudes towards insurance, March 2015
                                                                                                                                                • Consumers are split on how they view insurance brokers
                                                                                                                                                  • Figure 45: Broker-related attitudes towards insurance, March 2015
                                                                                                                                                • Most insurance holders believe it is better to have all insurance policies with a single company/provider
                                                                                                                                                  • Figure 46: Company-related attitudes towards insurance, March 2015
                                                                                                                                              • The Consumer – Home, auto, travel insurance and Chinese Canadians

                                                                                                                                                • Key points
                                                                                                                                                  • Chinese Canadians are shopping around to find a better policy
                                                                                                                                                    • Figure 47: Insurance renewal behaviour when existing insurance expires or comes up for renewal, Chinese Canadians vs overall population, March 2015
                                                                                                                                                  • Chinese Canadians are less trusting of insurance brokers
                                                                                                                                                    • Figure 48: Attitudes towards insurance (any agree), Chinese Canadians vs overall population, March 2015
                                                                                                                                                • The Consumer – Target Groups

                                                                                                                                                  • Key points
                                                                                                                                                    • Four target groups
                                                                                                                                                      • Figure 49: Target groups, March 2015
                                                                                                                                                    • Broker Friendly (30%)
                                                                                                                                                      • Disengaged (29%)
                                                                                                                                                        • Cost Conscious (24%)
                                                                                                                                                          • Options Open (17%)

                                                                                                                                                          Companies Covered

                                                                                                                                                          To learn more about the companies covered in this report please contact us.

                                                                                                                                                          Home, Auto and Travel Insurance - Canada - June 2015

                                                                                                                                                          £3,277.28 (Excl.Tax)