Canada Life Insurance Market Report 2022
£ 3,695 (Excl.Tax)
Report Summary
“A majority of Canadians view having life insurance as essential for a peaceful mind so demand for life insurance will remain strong. Life stage events influence purchase, while the feeling of sufficiency with just employer coverage is a barrier to individual sales. Many younger consumers are open to buying from a digital insurer, but traditional human distribution channels remain important.”
– Sanjay Sharma, Senior Financial Services Analyst
Key issues covered in this Report
- The impact of COVID-19 on life insurance.
- This Report aims to get a consumer perspective of life insurance with regard to ownership (employer vs individual), choice factors behind choice of company, reasons for purchasing/not purchasing life insurance, purchase triggers, interest in app usage and attitudes towards life insurance.
- The responses are also segmented by those who purchase through employers (group) and individual purchase.
Table of Contents
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Overview
- What you need to know
- Key issues covered in this Report
- What you need to know
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Executive Summary
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- Top takeaways
- Market overview
- Outlook on life insurance
- Figure 1: Outlook for life insurance, 2022
- Opportunities
- Self-employed/freelancers less likely to have life insurance
- Customizable term and guaranteed acceptance life insurance spur interest
- COVID-19 has spurred interest among 18-34s
- Reputation matters to a third of consumers
- Challenges
- Life insurance app usage is low
- Half of non-buyers deem employer coverage sufficient
- Two in five 18-34s feel paying for life insurance is a waste of money
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The Market – Market Factors
- Immigrants are a major growth market for life insurers
- Figure 2: Distribution of foreign-born population by region of birth, 2016-36 (projected)
- Canada has an aging population which is a boost for life insurance
- Figure 3: Proportion of 0-14s and over-65s in the Canadian population, 1988-2068*
- Inflation will make life insurance even more price sensitive
- Figure 4: Changes in consumer price index, 2019-22
- Digitization of life insurance
- Immigrants are a major growth market for life insurers
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Competitive Strategies
- Teachers Life creates a life insurance brand for Millennials
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- Figure 5: Nowly Insurance Instagram post, January 2022
- PolicyMe launches a new life insurance product offering
- Figure 6: PolicyMe Instagram post, March 2022
- SiriusPoint invests in PolicyMe
- Empire Life makes it easier to buy life insurance for children
- Teachers Life creates a life insurance brand for Millennials
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Marketing Campaigns
- Desjardins promotes agents
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- Figure 7: Get Life Insurance Advice from a Desjardins Agent, June 2021
- Desjardins has a spring in its step for community support
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- Figure 8: Bounce back stronger with Desjardins, September 2021
- Beneva continues its integration and launches its first brand awareness campaign
- Figure 9: Discover Beneva!, December 2020
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- Figure 10: Beneva Desktop display ad, January 2022
- Co-operators expands into wealth management
- Co-operators’ rebranding campaign
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- Figure 11: Your future, your plan | Co-operators, October 2021
- Desjardins promotes agents
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The Consumer – Life Insurance Fast Facts
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Ownership of Life Insurance
- Around three in five Canadians have life insurance
- Figure 12: Ownership of life insurance products, 2021
- Younger consumers more likely to own term/universal and older whole life insurance
- Figure 13: Ownership of life insurance products, by age, 2021
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- Figure 14: Canada Life desktop display ad, February 2022
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- Figure 15: Canada Life Universal life Mobile Display Ad, September 2021
- More Canadians buy life insurance directly than through employer
- Figure 16: Direct vs employer purchase, 2021
- Over-55s more likely to buy directly; 18-34s more reliant on employer coverage
- Figure 17: Direct vs employer purchase, by age, 2021
- Whole life is more likely to be bought directly
- Figure 18: Type of life insurance purchased, by channel: employer vs direct, 2021
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- Figure 19: Beneva Desktop display ad, November 2021
- Self-employed/freelancers less likely to have life insurance
- Figure 20: Life insurance ownership, by employment status, 2021
- Around three in five Canadians have life insurance
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Value Perception
- Peace of mind is the main value of life insurance
- Figure 21: Attitudes related to life insurance, 2021
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- Figure 22: Desjardins Insurance Facebook ad, January 2022
- Two in five 18-34s feel paying for life insurance is a waste of money…
- …but COVID-19 has spurred interest among 18-34s
- Figure 23: Attitudes related to life insurance (% agree), by age, 2021
- Mortgage is also a purchase trigger for half of 18-34s
- Half of non-buyers deem employer coverage sufficient
- Figure 24: Reasons for not having individual life insurance, 2021
- Some reasons are age dependent
- Figure 25: Reasons for not having individual life insurance (select), by age, 2021
- Other reasons revolve around affordability and inheritance
- Peace of mind is the main value of life insurance
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Choice Factors
- Price, product suitability and company reputation matter most
- Figure 26: Choice factors when choosing a life insurance provider, 2021
- Price matters most to 35-54s
- Figure 27: Choice factors when choosing a life insurance provider (select), 2021
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- Figure 28: TD Insurance desktop display, February 2022
- 18-34s are more influenced by advice/recommendations and social media/advertising
- Figure 29: Canada Life March 2022
- Having a wide range of insurance products is more important to higher-income earners
- Figure 30: RBC Insurance Facebook ad, November 2021
- Consolidation of financial products influences a fifth of consumers
- Figure 31: Desjardins Insurance Facebook ad, February 2022
- Reputation matters to a third of consumers
- Figure 32: Sun life Facebook ad, January 2022
- Insurance broker referral influences almost a fifth of consumers
- A quarter of higher-income earners influenced by their financial advisor
- Price, product suitability and company reputation matter most
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Digital Trends
- Majority would consider buying online from a traditional insurer
- Figure 33: Digital trends in life insurance, 2021
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- Figure 34: TD life insurance Facebook ad, February 2022
- Many younger consumers are open to a digital insurer
- Half of 18-34s have used a comparison site
- Figure 35: Digital trends in life insurance (% agree), by age, 2021
- Digital engagement is lower among older consumers and women
- Figure 36: Digital trends in life insurance (% agree), men vs women, 2021
- Life insurance app usage is low
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- Figure 37: Life insurance apps (% agree), 2021
- Majority would consider buying online from a traditional insurer
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General Attitudes
- Most consumers are confident about their level of coverage
- Figure 38: General attitudes towards life insurance, 2021
- Three in four of 18-34s are interested in customizable term insurance
- Figure 39: General attitudes (select) towards life insurance (% agree), by age, 2021
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- Figure 40: Insurance for your life – Canada Life, June 2021
- Majority of consumers have discussed policy details with their family
- Two in three of 18-34s open to using their life insurance company for investments
- Figure 41: Canada Life Facebook ad, December 2021
- Affinity/group coverage preference drives many consumers
- Figure 42: TD Affinity Insurance mobile display ad, February 2022
- A third are influenced by lifestage events
- Figure 43: Select life insurance related attitudes (% agree), 2021
- A third of 18-34s are interested in guaranteed acceptance life insurance
- Figure 44: Life insurance related attitudes (% agree), by age, 2021
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- Figure 45: CAA Facebook ad, July 2021
- Most consumers are confident about their level of coverage
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Appendix – Data Sources and Abbreviations
- Data sources
- Consumer survey data
- Consumer qualitative research
- Mintel Trend Drivers
- Abbreviations and terms
- Data sources
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This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
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