Insurance Trends - Canada - April 2021

OVERVIEW
What you need to know
Key issues covered in this Report
EXECUTIVE SUMMARY
Top takeaways
Market overview
Impact of COVID-19 on insurance
Figure 1: Short-, medium- and longer-term impact of COVID-19 on insurance trends, December 2020
Opportunities
Improving perceptions can boost ownership rates of creditor and pet insurance
A third of 18-34s discuss insurance on social media
Changing the conversation about insurance
Challenges
Canadians confront “lockdown inertia”
Perceptions of complexity may be hindering mobile app adoption levels
COVID-19 is making insurers focus more on mental health
THE MARKET – KEY TAKEAWAYS
Rise of virtual care
Obesity is high
On-demand insurance
Driving tracking is gaining momentum
Smart homes and home insurance
THE MARKET – MARKET FACTORS
Impact of COVID-19 on the insurance industry
COVID-19 increases interest in digital insurance and virtual care
Rise of virtual care
Figure 2: Babylon by Telus Health direct mail campaign, January 2021
Obesity is high
Figure 3: Weight distribution of the Canadian population, Statistics Canada, 2018
MARKET OPPORTUNITIES
On-demand insurance
The Internet of Things in insurance
Smart homes and home insurance
Driving tracking is gaining momentum
Figure 4: Canadian auto insurers’ telematics offerings (select), March 2021
Telematics surcharges arrive in Ontario and Alberta
Travelers Canada Introduces IntelliDrive
CAA targets low mileage drivers
Figure 5: CAA direct mail campaign, August 2020
COMPANIES AND BRANDS – KEY TAKEAWAYS
Health care developments
Start-up news
COMPETITIVE STRATEGIES
Loblaw to refer shoppers to health services
New Manulife model aims to help group members stay healthy
Canada Life now offers Shoppers Drug Mart health coaching program
RATESDOTCA Group raises $51 million
Insurance for the ‘gig economy’
Livelli aims to provide community-based insurance platform
Duuo offers innovative products for the “new economy”
Figure 6: Duuo insurance online ad, January 2021
TD pushes simplified life insurance
Figure 7: TD Insurance Facebook ad for simplified life insurance, October 2020 and January 2021
THE CONSUMER – WHAT YOU NEED TO KNOW
Most Canadians own at least one insurance product
COVID-19 has made Canadians more careful in their everyday life
Strong calls to focus more on preventative and mental health
Majority prefer buying through brokers/agents
More than half willing to use a driving tracking device
INSURANCE OWNERSHIP 
Most Canadians own at least one insurance product
Figure 8: Insurance ownership, December 2020
Ownership of home and auto highly age dependant
Figure 9: Home and auto insurance ownership, by age, December 2020
Life insurance ownership spikes after 25
Figure 10: Life insurance ownership, by age, December 2020
Improving perceptions can boost ownership rates of creditor and pet insurance
CHANGING THE CONVERSATION ABOUT INSURANCE
Insurance was born of a need to manage risk
Interest in insurance features: renewal discounts are of most interest
Figure 11: Interest in insurance features (any rank), December 2020
Multi-policy or bundling discounts matter more to younger consumers
Figure 12: Scotia Home & Auto Insurance direct mail offer, September 2020
Figure 13: Interest in insurance features (any rank), by age, December 2020
Figure 14: Tackling road safety with traffic cameras | Aviva Canada, August 2020
IMPACT OF COVID-19 ON INSURANCE
COVID-19 has made Canadians more careful in their everyday life
Figure 15: COVID-19 related behaviours and attitudes, December 2020
Telehealth and virtual care experience a COVID-19 surge
Figure 16: Pacific Blue Cross print advertisement, June 2020
Canadians confront “lockdown inertia”
Figure 17: COVID-19 related behaviours and attitudes (select), by age, December 2020
COVID-19 has made most Canadians more careful
Figure 18: The COVID-19 pandemic has made me more careful in my everyday life, by age and gender, December 2020
Only 5% have cancelled or suspended their auto insurance
Few are using health insurer’s app to find COVID-19 testing locations
HEALTH CARE TRENDS
Strong calls to focus more on preventative and mental health
Figure 19: Attitudes towards health care trends, December 2020
Younger men are more interested in prescription delivery by drone
Figure 20: Attitudes towards tech-related health care trends (% agree), by age and gender, December 2020
Half of men aged 18-34 are interested in health monitoring implants
Health insurers increasing focus on mental health
Figure 21: Sun Life Canada’s Let’s get you there campaign, October 2020
COVID-19 has exposed the need for more mental health services
Preventative care is on almost everyone’s wish-list
‘Quarantine 15’ appears due to pandemic lifestyle disruption
What else can the health care industry do: the holistic angle to wellness
Figure 22: Select attitudes towards health care trends (% agree), by age, December 2020
COVID tracing app appeals more to younger consumers
Figure 23: Toronto Public Health Instagram post, March 2021
INSURANCE PURCHASE TRENDS
Half use comparison sites before shopping for insurance
Figure 24: Insurance purchase attitudes, December 2020
Simplified life is the industry response to a demand for simplicity
A third would rather interact with apps than humans
Majority prefer buying through brokers/agents
Figure 25: Insurance purchase attitudes, December 2020
Most think of insurance at renewal but read policies in detail
Figure 26: Know Your Policy, September 2017
Two thirds of 18-34s interested in on-demand insurance
Majority find online rating sites useful
Figure 27: Online attitudes towards insurance, December 2020
Figure 28: I have posted a review of my insurance company online, by age and gender, December 2020
A third of 18-34s discuss insurance on social media
Figure 29: I discuss insurance on social media, by age and gender, December 2020
Figure 30: Sonnet Instagram post, November 2020
TECHNOLOGY TRENDS
More than half willing to use a driving tracking device
Figure 31: Attitudes related to technology and insurance, December 2020
Half of 18-34s willing to let health insurers track their lifestyle
Figure 32: Attitudes related to technology and insurance, by age, December 2020
Half of 18-34s also willing to let home insurers use smart home device data
Figure 33: CAA member savings on smart home technology, October 2020
Smart homes are of most interest to young men
Figure 34: I want my house to be a “smart home” that I can control from my phone (% agree), by age and gender, December 2020
MOBILE INSURANCE APPS
Perceptions of complexity may be hindering adoption levels
Figure 35: Attitudes related to mobile apps, December 2020
Interest in mobile apps
Mobile apps: majority interested in at least one feature
Figure 36: Interest in mobile app features, December 2020
Interest is highest among 18-34s
Figure 37: Interest in mobile app features, 18-44s vs over-45s, December 2020
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Consumer qualitative research
Mintel Trend Drivers
Abbreviations and terms