Table of Contents
Overview
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- Regional classifications
- Income
- Glossary
- Annuities
- Decumulation
- Segregated Funds (Seg. Funds)
- Tax-Free Savings Account (TFSA)
- Term life insurance
- Universal life insurance
- Whole life insurance/Permanent life insurance
Executive Summary
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- The issues
- Around three in five Canadians have life insurance
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- Figure 1: Ownership of life insurance, May 2017
- No dependents and cost are the top reasons for not having life insurance
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- Figure 2: Reasons for not having life insurance, May 2017
- Sun Life and Manulife are the leading providers of individual life insurance
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- Figure 3: Choice of provider for individual life insurance, May 2017
- Younger consumers more likely to prefer buying from bank insurance subsidiaries and credit unions
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- Figure 4: Attitudes related to company preferences, May 2017
- Most consumers are not currently interested in digital purchase of life insurance
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- Figure 5: Attitudes related to channel preference, May 2017
- The opportunities
- Increasing ownership among under-penetrated segments
- Asian Canadians more likely to need guidance on life insurance
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- Figure 6: Reasons for not having life insurance (select), Asian Canadians vs overall population, May 2017
- Older consumers favour well-known and specialty life insurance brands
- Life insurance companies can leverage their estate planning expertise
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- Figure 7: Importance of factors motivating life insurance purchase, by income, May 2017
- 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/health insurance companies
- Adapting to the new solvency standard
- Impact of new tax legislation in effect in 2017
- FinTech and life insurance (InsurTech)
Market Factors
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- Canada’s population is ageing
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- Figure 8: Population aged 0-14 and 65+, as of July 1, 1995-2035*
- Figure 9: Canadian population, by age, 2016
- Opportunities and challenges come with an ageing population
- Increased diversity means greater considerations for life/health insurance companies
- Regulation: adapting to the new solvency standard
- Impact of new tax legislation in effect in 2017
- FinTech and life insurance (InsurTech)
Key Players – What You Need to Know
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- Cookhouse lab launches in Toronto
- Manulife launches new Lab of Forward Thinking location in Singapore
- New venture launchpad Diagram announces close of $25 million fund
- Desjardins sells insurance brokerage unit
- Micro-Duration Life Insurance
- Singapore-based FitSense takes knowing your customer to a new level
Industry Developments and Innovations
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- Cookhouse Lab launches in Toronto
- Manulife launches new Lab of Forward Thinking location in Singapore
- New venture launchpad Diagram announces close of $25 million fund
- Micro-duration life insurance
- Singapore-based FitSense takes knowing your customer to a new level
- Ladder launches in California
- Humania Assurance launches HuGO
- eSignLive and APEXA offer digital onboarding and e-contracting solution
- Desjardins sells insurance brokerage unit
- Sun Life makes changes to streamline life insurance application process
- Canadian robo-advisor launches digital life insurance service
- Manulife drops nicotine testing in bid to speed up insurance application process
- Manulife and Sun Life to insure those who are HIV-positive
- Canadian life insurance industry commits to limits on use of genetic test results
Key Players – Marketing Campaigns
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- Select campaigns from Mintel Comperemedia
- Scotia Life’s Term 20 invites consumers to take a second look at a simple product
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- Figure 10: Scotia term life insurance direct mail campaign, April 2017
- CIBC offers older Canadians a low-coverage, guaranteed-acceptance product
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- Figure 11: CIBC guaranteed acceptance life insurance mail campaign, May 2017
- Manulife targets Ontario engineers with a special member rate
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- Figure 12: Manulife engineers Canada sponsored term life direct mail campaign, April 2017
- Other marketing campaigns
- The Co-operators launches new marketing campaign in Quebec
- Manulife Vitality asks Canadians "#WhatDoYouLiveFor?"
The Consumer – What You Need to Know
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- Around three in five Canadians have life insurance
- Multiple benefits drive life insurance ownership
- Sun Life and Manulife are the leading providers of individual/group life insurance
- Younger consumers more likely to buy from bank insurance subsidiaries and credit unions
- Most consumers are not interested in digital purchase of life insurance
Ownership
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- Around three in five Canadians have life insurance
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- Figure 13: Ownership of life insurance, May 2017
- Quebecers own more life insurance compared to other Canadians
- Insurance ownership trends significantly higher with income and age
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- Figure 14: Differences in ownership of life insurance, by income, May 2017
- Figure 15: Differences in ownership of life insurance, by age, May 2017
- Increasing ownership among under-penetrated segments
- Canadians buy more individual insurance compared to group
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- Figure 16: Individual and group life insurance purchase, May 2017
- Whole and universal life more likely to be purchased directly
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- Figure 17: Type of insurance owned, by group and direct purchase, May 2017
Reasons for Having Life Insurance
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- Multiple benefits drive life insurance ownership
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- Figure 18: Importance of factors motivating life insurance purchase, May 2017
- Younger consumers cite more reasons for buying life insurance
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- Figure 19: Importance of factors motivating life insurance purchase, by age, May 2017
- Higher income earners more likely to list estate planning as a purchase reason
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- Figure 20: Importance of factors motivating life insurance purchase, by income, May 2017
- Life insurance companies can leverage their estate planning expertise
Reasons for not Having Life Insurance
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- No dependents and cost are the top reasons for not having life insurance
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- Figure 21: Reasons for not having life insurance, May 2017
- Asian Canadians more likely to need guidance on life insurance
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- Figure 22: Reasons for not having life insurance (select), Asian Canadians vs overall population, May 2017
- Older Canadians more likely to state financial comfort as a reason for not buying
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- Figure 23: Reasons for not having life insurance (select), over-55s vs overall population, May 2017
Choice of Provider
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- Sun Life and Manulife are the leading providers of individual life insurance
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- Figure 24: Choice of provider for individual life insurance, May 2017
- TD Insurance performs significantly better among younger customers
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- Figure 25: Choice of life insurance provider (select), by age, May 2017
- Younger consumers more likely to prefer buying from bank insurance subsidiaries and credit unions
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- Figure 26: Attitudes related to company preferences (% agree), May 2017
- Figure 27: Agreement with statements on choice of provider (% agree), by age, May 2017
- Older consumers favour well-known and specialty life insurance brands
- Enhancing trust to increase ownership
- Sun Life, Manulife and Great-West Life dominate the group life insurance market
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- Figure 28: Choice of provider for group life insurance, May 2017
- Sun Life does significantly better among older employees
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- Figure 29: Choice of provider for group life insurance (select), by age, May 2017
Purchase Preferences
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- Most consumers are not currently interested in digital purchase of life insurance
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- Figure 30: Attitudes related to channel preference, May 2017
- Around one in four 18-34s research life insurance online before purchase
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- Figure 31: Attitudes related to the insurance purchase decision, May 2017
- Younger consumers more unsure about life insurance
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- Figure 32: General attitudes about life insurance (% agree), by age, May 2017
- Most consumers are not apprehensive about medical questions
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- Figure 33: Attitudes related to medical testing during the application process, May 2017
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
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