Table of Contents
Executive Summary
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- Market drivers
- Canadian economy to pick up speed, but many risks remain
- Outlook on the real estate and housing market
- Wealth distribution in Canada
- Household debt in Canada
- Consumer confidence
- Innovations
- Brand communications
- The consumer
- More than half of Canadians have auto, life and home insurance
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- Figure 1: Ownership of insurance products, September 2014
- Channel preferences vary by product
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- Figure 2: Purchase channels for insurance products, September 2014
- Low premiums are the most important choice factor
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- Figure 3: Importance of factors when buying insurance, September 2014
- Around three quarters of insurance owners automatically renew with their existing provider
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- Figure 4: Renewal Behaviour with regard to existing policies, September 2014
- Older females show a marked preference for insurance brokers
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- Figure 5: Summary of Attitudes towards insurance purchase, September 2014
- What we think
Issues and Insights
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- Consolidation and how insurance companies can increase their share of customer wallet
- The facts
- The implications
- Framing the discussion beyond low premiums
- The facts
- The implications
- Insurance brokers are still the predominant purchase channel but some trust issues persist
- The facts
- The implications
- Targeting under-penetrated segments such as younger consumers, singles, Chinese Canadians and the disengaged
- The facts
- The implications
Trend Application
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- Trend: Let’s Make a Deal
- Trend: Prove it
- Trend: Extend my Brand
Market Drivers
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- Key points
- Economic overview
- IMF expects the Canadian economy to pick up speed, but many risks remain
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- Figure 6: Canada’s GDP, by quarter, Q1 2008-Q1 2014
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- Figure 7: Household disposable incomes and savings in Canada, Q1 2008-Q1 2014
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- Figure 8: Canada’s unemployment rate, by gender, 2008-14
- Interest rates, inflation and market volatility
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- Figure 9: Inflation rates in Canada, 2004-14
- Outlook on the real estate and housing market
- British Columbia has the highest net worth
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- Figure 10: Canada median net worth, by province, 2012
- Household debt in Canada
- Consumer confidence
- Demographic overview
- Population count and growth in Canada
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- Figure 11: Share of population of Canada, by territory/province, 2014
- Canada’s population is expected to age in the coming years
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- Figure 12: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
- Figure 13: Projected trends in the age structure of the Canada population, 2014-19
- Living longer but not necessarily healthier
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- Figure 14: Average life expectancy* and health-adjusted life expectancy (HALE)**, by disease status and gender, 2013
Market Data for Selected Insurance Products
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- Key points
- Auto insurance
- Homeowners insurance
- Pet insurance
- Life insurance
- Health insurance
- Mortgage insurance
- Travel insurance
Strengths and Weaknesses
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Cigna Health Matters Wellness Tool
- Belairdirect’s app to curb distracted driving
- State Farm claims app adds object recognition for simple submission
- Swiftcover offering discounts to drivers who install a dashcam
- Intrepid 24/7’s Travel Navigator app
Companies and Products
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- Manulife
- Overview and company information
- Recent activity
- Sun Life
- Overview and company information
- Recent activity
- Desjardins
- Overview and company information
- Recent activity
- Intact Insurance
- Overview and company information
- Recent activity
- Allianz Global Assistance
- Overview and company information
- Recent activity
- Canada Mortgage and Housing Corporation
- Overview and company information
- Recent activity
Brand Communication and Promotion
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- Key points
- Belairdirect is the leading insurance direct mailer
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- Figure 15: Direct mail insurance volume from October 2013 to October 2014
- Featured campaigns from Mintel Comperemedia
- Belairdirect reduced rates for car insurance and combination discounts campaign
- RBC Insurance Consolidation Offer
- Health and dental insurance for CARP members
- Pet insurance from Western Financial Insurance Company
The Consumer – Ownership of Insurance Products
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- Key points
- More than half of Canadians have auto, life and home insurance
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- Figure 16: Ownership of insurance products, September 2014
- Singles have a significantly lower insurance ownership rate
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- Figure 17: Insurance ownership by marital status, September 2014
- More than a third of Canadians have four or more types of insurance
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- Figure 18: Repertoire of ownership of insurance products, September 2014
- CHAID analysis: Identifying sub-groups more likely to own insurance
- Methodology
- Adults aged 35-64 married/in a civil partnership/living as married with household incomes $50,000+ over-index on life insurance ownership by 18%
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- Figure 19: Life Insurance – CHAID – Tree output, December 2014
- Adults married/in a civil partnership/living as married/widowed with household incomes $75,000+ over-index on health insurance ownership by 14%
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- Figure 20: Health insurance – CHAID – Tree output, December 2014
- Adults aged 45+ with household incomes greater than $75,000 over-index on homeowners insurance ownership by 42%
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- Figure 21: Homeowners Insurance – CHAID – Tree output, December 2014
The Consumer – Purchase Channel
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- Key points
- Channel preferences vary by product
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- Figure 22: Purchase channels for insurance products, September 2014
The Consumer – Choice Factors
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- Key points
- Low premiums are the most important choice factor
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- Figure 23: Importance of factors when buying insurance, September 2014
- Trusted company most important factor for older Canadians
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- Figure 24: Importance of choice factors: comparison of 18-24 and over-65 age segments
- Adults aged 18-44 with homeowners and auto insurance over-index by 15% on rating the importance of low/affordable premiums for choosing their policy
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- Figure 25: Low/affordable monthly premiums – CHAID – Tree output, December 2014
The Consumer – Renewal Behaviour
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- Key points
- Around three quarters of insurance owners automatically renew with their existing provider
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- Figure 26: Renewal Behaviour with regard to existing policies, September 2014
- Key driver analysis
- Methodology
- Indicator variables
- Inertia is a strong driver of automatic renewal of insurance policies
- What does this mean for insurance companies?
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- Figure 27: Key drivers of insurance policy renewal behavior, December 2014
The Consumer-Reasons for Shopping Around at the Time of Renewal
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- Key points
- Lower premiums, better coverage and checking the competitiveness of the quote are three main reasons for shopping around
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- Figure 28: Reasons for shopping around at the time of renewal, September 2014
The Consumer – Attitudes towards Insurance Purchase
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- Key points
- Summary of attitudes
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- Figure 29: Summary of Attitudes towards insurance purchase, September 2014
- Older females show a marked preference for insurance brokers
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- Figure 30: Opinions about insurance brokers/agents, September 2014
- About half of insurance owners prefer to consolidate their insurance policies with one provider
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- Figure 31: Attitudes towards consolidation of policies and switching, September 2014
- Premiums are more important than deductibles as a purchase influencer
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- Figure 32: Attitudes towards Premiums vs deductibles, September 2014
- Life events have major impact on insurance decision making, particularly for females
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- Figure 33: perceptions of the importance of insurance, September 2014
The Consumer – Chinese Canadians and Insurance Purchase
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- Key points
- Chinese Canadians have a lower ownership rate of homeowners and mortgage insurance despite having similar home ownership rates
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- Figure 34: Ownership of insurance products, Chinese Canadians compared to Whites/Caucasians, September 2014
- Chinese Canadians more likely to be influenced by recommendations from family/friends
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- Figure 35: Choice factors: Chinese Canadians compared to Whites/Caucasians, September 2014
- Chinese Canadians more likely to shop around at the time of policy renewal
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- Figure 36: Attitudes towards insurance purchase, Chinese Canadians compared to Whites/Caucasians, September 2014
The Consumer – Target Groups
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- Key points
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- Figure 37: Target groups, September 2014
- Bargain Hunters (24%)
- Broker Lovers (30%)
- Consolidators (20%)
- Disengaged (24%)
Appendix – The Consumer – Ownership of Insurance Products
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- Figure 38: Ownership of insurance products, September 2014
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- Figure 39: Most popular ownership of insurance products, by demographics, September 2014
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- Figure 40: Next most popular ownership of insurance products, by demographics, September 2014
- Repertoire analysis
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- Figure 41: Repertoire of Ownership of insurance products, September 2014
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- Figure 42: Repertoire of ownership of insurance products, by demographics, September 2014
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- Figure 43: Ownership of insurance products, by ownership of insurance products, September 2014
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Appendix – The Consumer – Insurance Purchase Channel
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- Figure 44: Insurance purchase channel, September 2014
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- Figure 45: Insurance purchase channel – Life, by demographics, September 2014
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- Figure 46: Insurance purchase channel – Health, by demographics, September 2014
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- Figure 47: Insurance purchase channel – Auto/Motorcycle, by demographics, September 2014
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- Figure 48: Insurance purchase channel – Travel, by demographics, September 2014
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- Figure 49: Insurance purchase channel – Homeowners, by demographics, September 2014
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- Figure 50: Insurance purchase channel – Renters, by demographics, September 2014
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- Figure 51: Insurance purchase channel – Mortgage, by demographics, September 2014, September 2014
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Appendix – The Consumer – Choice Factors
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- Figure 52: Choice factors for choosing policy and/or provider, September 2014
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- Figure 53: Most popular choice factors for choosing policy and/or provider, by demographics, September 2014
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- Figure 54: Next most popular choice factors for choosing policy and/or provider, by demographics, September 2014
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Appendix –The Consumer – Renewal Behaviour
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- Figure 55: Renewal behaviour, September 2014
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- Figure 56: Renewal behaviour, by demographics, September 2014
- Key driver analysis
- Interpretation of results
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- Figure 57: insurance policy renewal behavior – Key driver output, December 2014
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Appendix – The Consumer – Reasons for Shopping Around at the Time of Renewal
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- Figure 58: Reasons for shopping around, September 2014
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- Figure 59: Reasons for shopping around, by demographics, September 2014
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Appendix – The Consumer – Attitudes towards Insurance Purchase
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- Figure 60: Attitudes towards insurance purchase, September 2014
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- Figure 61: Agreement with the statements ‘It is better to have all insurance policies with a single company/provider’ and ‘Working with an insurance agent is the best way to get policies to suit my needs’, by demographics, September 2014
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- Figure 62: Agreement with the statements ‘Lower deductibles are more important than lower premiums(ie monthly payments) when selecting a policy’ and ‘It is important to shop around and get quotes every time a policy comes up for renewal’, by demographics, September 2014
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- Figure 63: Agreement with the statements ‘Premiums (ie monthly payments) are the most important consideration when choosing an insurance company’ and ‘It is important to re-evaluate insurance needs after major life events (eg birth of a child, new job, new car, new home)’, by demographics, September 2014
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- Figure 64: Agreement with the statements ‘I prefer to buy insurance from a subsidiary of a bank (eg RBC Insurance, TD Insurance)’ and ‘I prefer to deal with an agent rather than purchase a policy online’, by demographics, September 2014
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- Figure 65: Agreement with the statements ‘I like to take my chances and generally avoid buying insurance’ and ‘I would be more likely to use insurance agents if I trusted them more’, by demographics, September 2014
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- Figure 66: Agreement with the statements ‘I expect my insurance provider to reward me if I renew with them (eg lower premiums/deductibles, better coverage, etc.)’ and ‘I expect my insurance provider to reward me if I renew with them (eg lower premiums/deductibles, better coverage, etc.)’, by demographics, September 2014
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- Figure 67: Attitudes towards insurance purchase, by ownership of insurance products, September 2014
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Appendix – The Consumer – Chinese Canadians and Insurance Purchase
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- Figure 68: Selected demographics by total population against Chinese Canadians, September 2014
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Appendix – The Consumer – Target Groups
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- Figure 69: Target groups, September 2014
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- Figure 70: Target groups, by demographics, September 2014
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- Figure 71: Ownership of insurance products, by target groups, September 2014
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- Figure 72: Insurance purchase channel – Life, by target groups, September 2014
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- Figure 73: Insurance purchase channel – Health, by target groups, September 2014
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- Figure 74: Insurance purchase channel – Auto/Motorcycle:, by target groups, September 2014
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- Figure 75: Insurance purchase channel – Travel, by target groups, September 2014
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- Figure 76: Insurance purchase channel – Homeowners, by target groups, September 2014
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- Figure 77: Insurance purchase channel – Renters, by target groups, September 2014
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- Figure 78: Insurance purchase channel – Mortgage, by target groups, September 2014
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- Figure 79: Choice factors for choosing policy and/or provider, by target groups, September 2014
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- Figure 80: Renewal behaviour, by target groups, September 2014
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- Figure 81: Reasons for shopping around, by target groups, September 2014
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- Figure 82: Attitudes towards insurance, by target groups, September 2014
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