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Canada The Insurance Purchase Decision Market Report

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the The Insurance Purchase Decision market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry and how fast are its rates of growth? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Definition

This Report covers consumer attitudes and behaviour related to insurance purchase. It explores usage of channels, methods of distribution, willingness to buying insurance online, openness to new technology, attitudes towards brokers and general attitudes about insurance purchase.

A number of emerging technologies and processes are having a massive impact on insurers: the refinement and availability of advanced analytics, artificial intelligence and machine learning, drones, telematics, usage-based insurance, autonomous driver-assisted vehicles reducing risk, etc. Along with these advancements, insurance companies are leveraging multiple distribution channels to suit customer preferences including traditional channels such as brokers and agents, through affinity programs with member associations, retail outlets, travel agencies, through employers for group sales, and direct digital sales.

Consumers are not only researching quotes online, but younger consumers are more willing to purchase online – making it more imperative for insurers and brokers alike to embrace technology. While insurance companies continue to leverage multiple channels to distribute their products, innovations such as the sharing economy, driverless cars and the ubiquitous smartphone continue to influence product offerings and customer expectations.

Expert analysis from a specialist in the field

Written by Sanjay Sharma, a leading analyst in the Senior Financial Services Analyst sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

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. Sanjay Sharma
Senior Financial Services Analyst

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Table of contents

  1. Overview

      • Regional classifications
        • Income
          • Ownership of creditor and travel insurance
          • Executive Summary

              • The issues
                • Over a third of Canadians have purchased travel insurance
                  • Figure 1: Ownership of travel insurance, April 2018
                • Most believe travel insurance is essential when leaving Canada
                  • Figure 2: General attitudes towards travel insurance, April 2018
                • Around one in five Canadians has purchased credit insurance
                  • Figure 3: Ownership of creditor insurance, April 2018
                • A quarter of buyers find creditor insurance hard to understand
                  • Figure 4: General attitudes about creditor insurance, April 2018
                • The opportunities
                  • Increasing travel insurance ownership among younger consumers is an opportunity
                    • Figure 5: Ownership of travel insurance (select), by age, April 2018
                  • Younger consumers and men more open to buying travel insurance through agents and using apps & kiosks
                    • Figure 6: Attitudes relating to purchase preferences for travel insurance, by age, April 2018
                  • Peace of mind is a selling feature to around two in five buyers of creditor insurance
                    • Figure 7: Attitudes relating to benefits of creditor insurance, April 2018
                  • What it means
                  • The Market – What You Need to Know

                    • Canada’s population is aging
                      • A growing population and diversity will boost demand
                        • Women live longer and are more likely to face old age-related diseases
                          • Canadians' household debt ratio declines
                          • Market Factors

                            • Canada’s population is aging
                              • Figure 8: Population aged 0-14 and 65+, as of July 1, 1995-2035*
                            • Opportunities and challenges come with an aging population
                              • Figure 9: Canadian population, by age, 2016
                            • A growing population and diversity will boost demand
                              • Canadians' household debt ratio declines
                              • What’s New

                                • Blockchain and insurance
                                  • Domestic opportunity in Canadian travel insurance market
                                    • Travel Insurance Bill of Rights
                                    • Key Players – What You Need to Know

                                      • OneEleven launches InsurTech growth program with Aviva Canada
                                        • AXA using Ethereum’s blockchain for a new flight insurance product
                                          • Cover-More enters Canada
                                            • Pay-as-you-go travel insurance comes to Canada
                                              • Travel insurer for trip-disruption app
                                                • Sun Life targets Millennials with new Quebecor partnership
                                                • Innovations & Industry Developments

                                                  • Travel insurer for trip-disruption app
                                                    • OneEleven launches InsurTech growth program with Aviva Canada
                                                      • 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
                                                          • Cover-More enters Canada
                                                            • Ingle International rolls out travel insurance platform
                                                            • Marketing Campaigns

                                                              • CAA renews push around travel insurance
                                                                • Figure 10: CAA travel’s “Making Bad Days Good. And Good Days Better”, January 2018
                                                              • Maxxlife targets visiting parents with seniors’ products
                                                                • Sun Life targets Millennials with new Quebecor partnership
                                                                • The Consumer – What You Need to Know

                                                                  • Over a third of Canadians have purchased travel insurance
                                                                    • Around one in five Canadians has purchased credit insurance
                                                                      • Online is the preferred channel for travel insurance purchase
                                                                        • Insurance companies and travel agents/suppliers are most used for travel insurance
                                                                          • In-person is the preferred purchase method for most creditor insurance
                                                                            • Almost half have purchased through a bank/credit union
                                                                            • Travel Insurance – Ownership

                                                                              • Over a third of Canadians have purchased travel insurance
                                                                                • Figure 11: Ownership of travel insurance, April 2018
                                                                              • Prolific travellers British Columbians have a higher ownership
                                                                                • Figure 12: Ownership of travel insurance (by region), April 2018
                                                                              • Older Canadians buy more travel insurance
                                                                                • Increasing travel insurance ownership among younger consumers is an opportunity
                                                                                  • Figure 13: Ownership of travel insurance (select), by age, April 2018
                                                                                • Men have a higher ownership
                                                                                  • Figure 14: Ownership of travel insurance (select), by gender, April 2018
                                                                                • Chinese Canadians also have a higher ownership
                                                                                  • Figure 15: Ownership of travel insurance (select), Chinese Canadians* vs overall, April 2018
                                                                              • Creditor Insurance – Ownership

                                                                                • Around one in five Canadians has purchased credit insurance
                                                                                  • Figure 16: Ownership of creditor insurance, April 2018
                                                                                • Younger Canadians are more likely to buy a creditor insurance product
                                                                                  • Figure 17: Ownership of creditor insurance, by age, April 2018
                                                                                • Parents with young children more likely to have bought creditor insurance
                                                                                  • Figure 18: Ownership of creditor insurance, by parental status, April 2018
                                                                                • South Asian Canadians have a higher ownership
                                                                                  • Figure 19: Ownership of creditor insurance, South Asian Canadians* vs overall, April 2018
                                                                              • Travel Insurance – Purchase Intention & Channels

                                                                                • Travel insurance purchase intention is high among Canadians
                                                                                    • Figure 20: Purchase intention, by insurance type (% would purchase), April 2018
                                                                                  • Younger consumers have a higher purchase intention of travel accident and lost baggage
                                                                                    • Figure 21: Purchase intention of travel accident and lost baggage insurance, 18-44s vs over-45s, April 2018
                                                                                  • Online is the preferred channel for travel insurance purchase
                                                                                    • Figure 22: Purchase channel preferences for travel insurance, April 2018
                                                                                  • 35-45s more likely to prefer making purchases online
                                                                                    • Figure 23: Use of channels for purchasing travel insurance, by age, April 2018
                                                                                  • Common distribution channels include insurance companies and travel agents/suppliers
                                                                                    • Figure 24: Distribution channels used for travel insurance, April 2018
                                                                                  • Travel agents, banks and retail outlets more popular with younger consumers
                                                                                    • Associations are more popular with older consumers
                                                                                      • Figure 25: Distribution channels used for travel insurance, 18-44s vs over-45s, April 2018
                                                                                  • Creditor Insurance – Purchase Intention & Channels

                                                                                    • Two-thirds of Canadians would purchase loan/line of credit life or disability insurance
                                                                                      • Figure 26: Purchase intention, by insurance type (% would purchase), April 2018
                                                                                    • Younger Canadians have a higher purchase intention of all creditor insurance products
                                                                                      • Figure 27: Purchase intention by insurance type (% would purchase), 18-44s vs over-45s, April 2018
                                                                                    • Atlantic Canadians have a higher purchase intention
                                                                                      • Figure 28: Purchase intention by insurance type (% would purchase), Atlantic Provinces vs overall, April 2018
                                                                                      • Figure 29: Purchase intention by insurance type (% would purchase), South Asian Canadians* vs overall, April 2018
                                                                                    • In-person is the preferred purchase method for most creditor insurance products
                                                                                      • Figure 30: Purchase channel preferences for creditor insurance, April 2018
                                                                                    • Men more likely to prefer purchasing mortgage creditor insurance online
                                                                                      • Figure 31: Preference for buying mortgage insurance products online, men vs women, April 2018
                                                                                    • Asian Canadians are more like to purchase all products online
                                                                                      • Almost half have purchased through a bank/credit union
                                                                                        • Figure 32: Distribution channels used for creditor insurance, April 2018
                                                                                    • Attitudes towards Travel Insurance

                                                                                      • Most believe travel insurance is essential when leaving Canada
                                                                                          • Figure 33: General attitudes towards travel insurance, April 2018
                                                                                        • Around two in five 18-44-year-old buyers find reviews important
                                                                                          • Around three in ten consumers worried about policy loopholes
                                                                                            • Men are more open to buying through agents, apps and kiosks
                                                                                              • Figure 34: Attitudes relating to purchase preferences for travel insurance, by gender, April 2018
                                                                                            • Younger consumers also more open to buying through apps and kiosks
                                                                                              • Figure 35: Attitudes relating to purchase preferences for travel insurance, by age, April 2018
                                                                                          • Attitudes towards Creditor Insurance

                                                                                            • A quarter of buyers find creditor insurance hard to understand
                                                                                                • Figure 36: General attitudes about creditor insurance, April 2018
                                                                                              • One in four 18-44s prefer to buy creditor insurance online
                                                                                                • One in five credit insurance buyers does not trust providers to pay out
                                                                                                  • Figure 37: Attitudes relating to trust and creditor insurance, April 2018
                                                                                                • Men are less likely to trust credit insurance providers
                                                                                                  • Figure 38: Attitudes relating to trust and creditor insurance, April 2018
                                                                                                • Peace of mind is a selling feature to around two in five buyers
                                                                                                  • Figure 39: Attitudes relating to benefits of creditor insurance, April 2018
                                                                                              • Appendix – Data Sources and Abbreviations

                                                                                                • Data sources
                                                                                                  • Consumer survey data
                                                                                                    • Abbreviations and terms