Description

“Societal health scares are generally good news for insurance sales as the fear factor spurs consumer demand for life and health protection. The closure of physical locations due to lockdowns has increased digital and phone contact while also giving insurance companies and brokers/agents time to reflect on how to better serve customers without face-to-face interaction. Increased digital usage for researching and buying insurance is likely to persist in the near future.”
– Sanjay Sharma, Senior Financial Services Analyst

Key issues covered in this Report

  • The impact of COVID-19 on consumer behaviour related to insurance buying in general.
  • This report covers consumer attitudes and behaviour related to buying insurance. It explores usage of channels, methods of distribution, willingness to buying insurance online, openness to technology, attitudes towards brokers and general attitudes about insurance purchase.

Table of Contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
      • Executive Summary

          • Top takeaways
            • Market overview
              • Impact of COVID-19 on buying insurance
                • Figure 1: Short, medium and longer-term impact of COVID-19 on buying insurance, July 2020
              • Opportunities and Challenges  
                • Humans are key to insurance distribution
                  • Mobile apps and chatbots are becoming part of the “next normal”
                    • Bundling discounts appeal to most
                      • Travel insurance to face headwinds
                        • Comparison websites are an integral part of distribution strategy
                          • COVID-19 may lead to a greater willingness to share data
                          • The Market – What You Need to Know

                            • Insurance industry impact of COVID-19
                              • COVID-19 will have a minor impact on CMHC mortgage insurance buyers
                                • Current state of telematics in Canada
                                  • Latest trends in insurance coverage
                                    • The Internet of Things in insurance
                                    • Market Factors

                                      • Insurance industry impact of COVID-19
                                        • Figure 2: Onlia Instagram post, March 2020
                                      • Life and health insurers react to COVID-19
                                        • COVID-19 having a mixed impact on auto insurers
                                          • Travel insurance and COVID-19
                                            • COVID-19 will have a minor impact on CMHC mortgage insurance buyers
                                            • What’s New?

                                              • Insurtechs in Canada
                                                • Navigating the regulatory environment is a challenge for insurtechs
                                                  • Current state of telematics in Canada
                                                    • Figure 3: Canadian auto insurers telematics offerings (select), June 2020
                                                  • Program details
                                                    • Other trends in insurance coverage
                                                      • Figure 4: Duuo Twitter post, April 2019
                                                    • The Internet of Things in insurance
                                                      • Usage and interest in tech devices: navigation and fitness trackers are most popular
                                                        • Figure 5: Usage and interest in tech devices, May 2019
                                                      • Impact of smart homes on home insurance
                                                      • Key Players – What You Need to Know

                                                        • BC auto insurance reforms
                                                          • Breathe Life launches first product
                                                            • SSQ Insurance launches new simplified life insurance products
                                                              • Aviva Canada and RBC Insurance team up to offer a better “Buy Online” experience
                                                                • Desjardins strikes up some musical relief
                                                                  • Sonnet sticks to comparing the old with the new
                                                                  • Innovations & Industry Developments

                                                                    • BC auto insurance reforms
                                                                      • Aviva Canada and RBC Insurance team up to offer a better “Buy Online” experience
                                                                        • Breathe Life launches first product
                                                                          • Sonnet launches group insurance
                                                                            • SSQ Insurance launches new simplified life insurance products
                                                                            • Marketing Campaigns

                                                                              • Desjardins strikes up some musical relief
                                                                                  • Figure 6: Send A Virtual Solo, May 2020
                                                                                • Belairdirect seeks to simplify insurance with a dance number
                                                                                  • Figure 7: belairdirect – Protect your car and home insurance premium – 30 sec, March 2020
                                                                                • Sonnet sticks to comparing the old with the new
                                                                                  • Figure 8: Young Stars vs. The Legends: Sticks | NHLPA | Sonnet Insurance, January 2020
                                                                                • Canada Life recalls the historical benefit of expertise
                                                                                    • Figure 9: A little guidance today can do a world of good tomorrow – Canada Life, May 2020
                                                                                • The Consumer – What You Need to Know

                                                                                  • Auto, home and life are the most popular insurance products
                                                                                    • Popularity of distribution channel is product dependent
                                                                                      • Canadians are more likely to obtain a quote rather than purchase insurance online
                                                                                        • Humans are the key to insurance distribution
                                                                                          • Around four in five consumers find comparison websites useful
                                                                                            • Digital interest is driven by age and to a lesser extent gender
                                                                                            • Insurance Ownership

                                                                                              • Auto, home and life are the most popular insurance products
                                                                                                • Figure 10: Insurance ownership, March 2020
                                                                                              • Age has a significant influence on ownership
                                                                                                  • Figure 11: Insurance ownership (select), by age, March 2020
                                                                                                • Income also determines ownership
                                                                                                  • Figure 12: Insurance ownership, household income of under $70K vs over $70K, March 2020
                                                                                                • Increasing pet insurance ownership
                                                                                                  • Some gender differences emerge
                                                                                                    • Figure 13: Insurance ownership (select), men vs women, March 2020
                                                                                                  • Travel insurance sales will face headwinds
                                                                                                    • Non-Chinese Asians are a potential marketing target
                                                                                                      • Figure 14: Insurance ownership (select), non-Chinese Asians vs overall, March 2020
                                                                                                  • Insurance Distribution Channels

                                                                                                    • Popularity of distribution channel is product dependent
                                                                                                      • COVID-19 impact on distribution
                                                                                                        • Humans are key to life insurance distribution
                                                                                                            • Figure 15: Life insurance distribution channels, March 2020
                                                                                                          • Employer and direct purchase are most common for health insurance
                                                                                                              • Figure 16: Health insurance distribution channels, March 2020
                                                                                                            • Brokers/agents and direct purchase most popular for auto/home insurance
                                                                                                              • Figure 17: Home and auto insurance distribution channels, March 2020
                                                                                                            • Travel insurance sales is more multi-channel
                                                                                                              • Figure 18: Travel insurance distribution channels, March 2020
                                                                                                          • Digital Insurance

                                                                                                            • Canadians are more likely to obtain a quote rather than purchase insurance online
                                                                                                              • Figure 19: Digital insurance behaviours, March 2020
                                                                                                            • Younger and men are more digitally engaged
                                                                                                              • Figure 20: Digital insurance behaviours (select), 18-44s vs over-45s, March 2020
                                                                                                              • Figure 21: Digital insurance behaviours (select), men vs women, March 2020
                                                                                                            • A fifth are interested in a driving tracking device
                                                                                                              • Figure 22: TD MyAdvantage mobile advertisement, June 2020
                                                                                                              • Figure 23: Willingness to use technology devices (% agree), March 2020
                                                                                                            • COVID-19 may lead to a greater willingness to share data
                                                                                                            • Technology Related Insurance Purchase Attitudes

                                                                                                              • Four in five consumers find comparison websites useful
                                                                                                                • Figure 24: Digital insurance attitudes, March 2020
                                                                                                              • Digital openness strongly driven by age
                                                                                                                • Figure 25: Digital insurance attitudes, 18-44s vs over-45, March 2020
                                                                                                              • Men are relatively more open to innovation
                                                                                                                • Figure 26: Digital insurance attitudes (select), by gender, March 2020
                                                                                                              • Younger consumers more open to wearable technology for better health insurance rates
                                                                                                                • Mobile apps and chatbots are becoming part of the “new normal”
                                                                                                                • General Attitudes about Buying Insurance

                                                                                                                  • Most consumers are interested in bundling discounts
                                                                                                                    • Figure 27: General attitudes about buying insurance, March 2020
                                                                                                                    • Figure 28: Belairdirect multi-product discount print advertisement, July 2019
                                                                                                                  • Insurance is more confusing than interesting
                                                                                                                    • Brokers remain relevant and useful
                                                                                                                      • Brokers and COVID-19
                                                                                                                        • Around half of 18-44s would like to buy more insurance from their employer
                                                                                                                          • Figure 29: General attitudes about buying insurance, March 2020
                                                                                                                        • Around one in four find it too cumbersome to switch
                                                                                                                          • Figure 30: General attitudes about buying insurance, March 2020
                                                                                                                        • Bank insurance subsidiaries and member associations have a niche appeal
                                                                                                                        • Appendix – Data Sources and Abbreviations

                                                                                                                          • Data sources
                                                                                                                            • Consumer survey data
                                                                                                                              • Abbreviations and terms

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