Canada Life Insurance Market Report 2020
£ 3,695 (Excl.Tax)
Report Summary
Everything you need to make the right decisions
Providing the most comprehensive and up-to-date information and analysis of the Life Insurance – Canada market, and the behaviours, preferences and habits of the consumer.
Mintel has the answers you’re looking for
What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?
Covered in this report
The market for life insurance has enjoyed continued growth in recent years. Canadians own around $4.8 trillion in life insurance protection, annual premium revenues exceed $100 billion and around 22 million Canadians have some life insurance coverage.
This Report aims to get a consumer perspective of life insurance with regard to ownership, choice of company, reasons for purchasing/not purchasing life insurance, interest in app features and attitudes towards life insurance. It also looks at key industry developments in life insurance from a consumer angle and market factors that determine the future outlook for the industry
Expert analysis from a specialist in the field
Written by Sanjay Sharma, a leading analyst in the Financial Services sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.
Knowledge and trust deficits around life insurance are inhibiting growth in ownership 
Sanjay Sharma
Senior Financial Services Analyst
Table of Contents
-
Overview
-
- Regional classifications
- Income
- Glossary
- Annuities
- Term life insurance
- Whole life insurance/Permanent life insurance
- Universal life insurance
-
-
Executive Summary
-
- The issues
- Around two in three Canadians have life insurance
- Figure 1: Life insurance ownership, December 2019
- Cost/affordability and lack of knowledge inhibit ownership
- Figure 2: Reasons for not owning life insurance, December 2019
- Manulife and Sun Life are the leading consumer choices
- Figure 3: Choice of provider for life insurance bought directly, December 2019
- Majority interested in at least one app feature
- Figure 4: Interest in app features, December 2019
- The opportunities
- Human contact is important when buying life insurance
- Figure 5: Buying preferences, December 2019
- Trust is a barrier although less among Quebecers and over-55s
- Figure 6: Perceptions about the life insurance industry (% agree), December 2019
- Small business/gig segment is an opportunity
- 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
- 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
- Canada’s population is ageing
-
Market Factors
- Immigration is fuelling Canada’s population growth…
- 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
- Figure 9: Population aged 0-14 and 65+, 1995-2035*
- Opportunities and challenges come with an ageing population
- Immigration is fuelling Canada’s population growth…
-
What’s New – InsurTech
- 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)
- InsurTech and life insurance
-
Key Players – What You Need to Know
- 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
- PolicyAdvisor aiming to digitize life insurance
-
Innovations & Industry Developments
- 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
- PolicyAdvisor aiming to digitize life insurance
-
Marketing Campaigns
- Manulife’s Life Lessons Scholarship Program
- Figure 10: Manulife Life Lessons Scholarship, August 2019
- Diversity and life insurance
- Figure 11: Manulife/CPA Term Life direct mail campaign, November 2019
- Babylist and Prudential partner to bring life insurance to new parents (US)
- Figure 12: Prudential/Babylist life insurance offering, July 2018
- Manulife’s Life Lessons Scholarship Program
-
The Consumer – What You Need to Know
- 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
- Around two in three Canadians have life insurance
-
Life Insurance Ownership
- Around two in three Canadians have life insurance
- Figure 13: Life insurance ownership, December 2019
- Younger consumers more likely to own term and older permanent/universal insurance
- Figure 14: Life insurance ownership, 18-44s vs over-45s, December 2019
- Men, parents and higher-income households have higher ownership
- Figure 15: Life insurance ownership, by gender, December 2019
- Financial health also drives ownership
- Figure 16: Life insurance ownership, by financial health, December 2019
- Quebecers also have higher ownership
- Around two in three Canadians have life insurance
-
Direct vs Employer Purchase
- More Canadians buy life insurance directly than through employer
- 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
- Figure 19: Direct vs employer purchase, by age, December 2019
- Small business/gig segment is an opportunity
- Figure 20: Life insurance ownership through employer, by type of employment, December 2019
- More Canadians buy life insurance directly than through employer
-
Reasons for Not Owning
- Cost/affordability and lack of knowledge inhibit ownership
- Figure 21: Reasons for not owning life insurance, December 2019
- Lack of knowledge is a barrier to product sales
- 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
- Figure 23: Reasons for not owning life insurance, 18-44s vs over-45s, by gender, December 2019
- Cost/affordability and lack of knowledge inhibit ownership
-
Choice of Provider
- Manulife and Sun Life are the leading consumer choices
- Figure 24: Choice of provider for life insurance bought directly, December 2019
- Bank insurance subsidiaries favoured by younger
- 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
- Figure 26: Choice of provider for employer coverage, December 2019
- Manulife and Sun Life are the leading consumer choices
-
Interest in App Features
- Majority interested in at least one app feature
- Figure 27: Interest in app features, December 2019
- Younger consumers are more interested
- Parents with young children are more open to app features
- Figure 28: Interest in app features, parents vs non-parents, December 2019
- Asian Canadians also have a higher interest
- 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
- Figure 30: TURF analysis – interest in mobile app offerings, December 2019
- Methodology
- Majority interested in at least one app feature
-
Buying Preferences
- Human contact is important when buying life insurance
- 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
- Figure 32: Buying preferences (% agree), 18-44s vs over-45s, by gender, December 2019
- Human contact is important when buying life insurance
-
General Attitudes
- Life insurance literacy gap exists
- Figure 33: General attitudes towards life insurance, December 2019
- Nearly two in five 18-44s consider life insurance a “waste of money”
- 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
- Figure 35: General attitudes (select) towards life insurance (% agree), by gender, December 2019
- Life insurance literacy gap exists
-
Industry Perceptions
- Two in three feel life insurance customers are treated fairly
- 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
- Two in three feel life insurance customers are treated fairly
-
Appendix – Data Sources and Abbreviations
- Data sources
- Consumer survey data
- Abbreviations and terms
- Data sources
About the report
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.
Market
Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.
Consumer
Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
Brand/Company
Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.
Data
Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.
*databooks not available with UK B2B Industry reports.
Below is a sample report, understand what you are buying.
Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.
Trusted by companies. Big and small.
