Table of Contents
Executive Summary
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- The issues
- Around two in three Canadians have life insurance
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- Figure 1: Life insurance ownership, December 2019
- Cost/affordability and lack of knowledge inhibit ownership
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- Figure 2: Reasons for not owning life insurance, December 2019
- Manulife and Sun Life are the leading consumer choices
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- Figure 3: Choice of provider for life insurance bought directly, December 2019
- Majority interested in at least one app feature
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- Figure 4: Interest in app features, December 2019
- The opportunities
- Human contact is important when buying life insurance
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- Figure 5: Buying preferences, December 2019
- Trust is a barrier although less among Quebecers and over-55s
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- Figure 6: Perceptions about the life insurance industry (% agree), December 2019
- Small business/gig segment is an opportunity
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- Figure 7: Life insurance ownership through employer, by type of employment, December 2019
- Claims is a key area for digitization
- What it means
Market Factors – What You Need to Know
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- Canada’s population is ageing
- Increased diversity means greater considerations for life insurance companies
- InsurTech and life insurance
- Market impact of InsurTech
- AI and life insurance
Market Factors
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- Immigration is fuelling Canada’s population growth…
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- Figure 8: Percent of Canadians who are visible minorities or not visible minorities, by age, 2016
- …and Asia is the primary source
- Increased diversity means greater considerations for life insurance companies
- Canada has more seniors than children
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- Figure 9: Population aged 0-14 and 65+, 1995-2035*
- Opportunities and challenges come with an ageing population
What’s New – InsurTech
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- InsurTech and life insurance
- AI and life insurance
- Life insurance and big data
- InsurTech companies in life insurance
- RateHub: online comparison platform
- Canadian robo-advisor launches Invisor TermLife
- Other Canadian players
- Sherpa (UK): a trusted personal guide
- Untangler (UK)
- Haven Life (US)
- Ethos and Bestow (US)
Key Players – What You Need to Know
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- PolicyAdvisor aiming to digitize life insurance
- Element AI announces first product for the insurance market
- SSQ and La Capitale announce merger
- Philip Morris entering life insurance
- Ontario launches new insurance regulator
Innovations & Industry Developments
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- PolicyAdvisor aiming to digitize life insurance
- Element AI announces first product for the insurance market
- SSQ and La Capitale announce merger
- Philip Morris entering life insurance
- Ontario launches new insurance regulator
Marketing Campaigns
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- Manulife’s Life Lessons Scholarship Program
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- Figure 10: Manulife Life Lessons Scholarship, August 2019
- Diversity and life insurance
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- Figure 11: Manulife/CPA Term Life direct mail campaign, November 2019
- Babylist and Prudential partner to bring life insurance to new parents (US)
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- Figure 12: Prudential/Babylist life insurance offering, July 2018
The Consumer – What You Need to Know
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- Around two in three Canadians have life insurance
- More Canadians buy life insurance directly than through employer
- Cost/affordability and lack of knowledge inhibit ownership
- Manulife and Sun Life are the leading consumer choices
- Majority interested in at least one app feature
- Human contact is important when buying life insurance
- Life insurance literacy gap exists
Life Insurance Ownership
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- Around two in three Canadians have life insurance
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- Figure 13: Life insurance ownership, December 2019
- Younger consumers more likely to own term and older permanent/universal insurance
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- Figure 14: Life insurance ownership, 18-44s vs over-45s, December 2019
- Men, parents and higher-income households have higher ownership
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- Figure 15: Life insurance ownership, by gender, December 2019
- Financial health also drives ownership
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- Figure 16: Life insurance ownership, by financial health, December 2019
- Quebecers also have higher ownership
Direct vs Employer Purchase
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- More Canadians buy life insurance directly than through employer
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- Figure 17: Direct vs employer purchase, December 2019
- Figure 18: Type of life insurance purchased, by channel, employer vs direct, December 2019
- Older more likely to buy directly; younger more reliant on employer coverage
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- Figure 19: Direct vs employer purchase, by age, December 2019
- Small business/gig segment is an opportunity
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- Figure 20: Life insurance ownership through employer, by type of employment, December 2019
Reasons for Not Owning
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- Cost/affordability and lack of knowledge inhibit ownership
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- Figure 21: Reasons for not owning life insurance, December 2019
- Lack of knowledge is a barrier to product sales
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- Figure 22: “I don’t know enough about life insurance” as a barrier to ownership, by age, December 2019
- Men more likely to have been declined coverage
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- Figure 23: Reasons for not owning life insurance, 18-44s vs over-45s, by gender, December 2019
Choice of Provider
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- Manulife and Sun Life are the leading consumer choices
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- Figure 24: Choice of provider for life insurance bought directly, December 2019
- Bank insurance subsidiaries favoured by younger
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- Figure 25: Choice of provider for life insurance bought directly, 18-44s vs over-45s, December 2019
- Sun Life, Canada Life and Manulife are leading employer insurance choices
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- Figure 26: Choice of provider for employer coverage, December 2019
Interest in App Features
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- Majority interested in at least one app feature
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- Figure 27: Interest in app features, December 2019
- Younger consumers are more interested
- Parents with young children are more open to app features
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- Figure 28: Interest in app features, parents vs non-parents, December 2019
- Asian Canadians also have a higher interest
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- Figure 29: Interest in app features (select), Asian Canadians vs overall, December 2019
- Claims is a key area for digitization
- TURF Analysis
- Interest in life insurance mobile app features
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- Figure 30: TURF analysis – interest in mobile app offerings, December 2019
- Methodology
Buying Preferences
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- Human contact is important when buying life insurance
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- Figure 31: Buying preferences, December 2019
- Brokers remain a dominant channel for life insurance
- Younger consumers and men, in particular, prefer buying through associations and online
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- Figure 32: Buying preferences (% agree), 18-44s vs over-45s, by gender, December 2019
General Attitudes
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- Life insurance literacy gap exists
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- Figure 33: General attitudes towards life insurance, December 2019
- Nearly two in five 18-44s consider life insurance a “waste of money”
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- Figure 34: General attitudes (select) towards life insurance (% agree), 18-44s vs over-45s, December 2019
- Around half of men feel life insurance matters only for those with children
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- Figure 35: General attitudes (select) towards life insurance (% agree), by gender, December 2019
Industry Perceptions
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- Two in three feel life insurance customers are treated fairly
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- Figure 36: Perceptions about the life insurance industry, December 2019
- Trust is a barrier, although less so for Quebecers and over-55s
- Trust is on the future agenda
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Abbreviations and terms
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