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Life Insurance - Canada - July 2017

OVERVIEW
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
The issues
Around three in five Canadians have life insurance
Figure 1: Ownership of life insurance, May 2017
No dependents and cost are the top reasons for not having life insurance
Figure 2: Reasons for not having life insurance, May 2017
Sun Life and Manulife are the leading providers of individual life insurance
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
Figure 4: Attitudes related to company preferences, May 2017
Most consumers are not currently interested in digital purchase of life insurance
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
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
Figure 7: Importance of factors motivating life insurance purchase, by income, May 2017
What it means
MARKET FACTORS – WHAT YOU NEED TO KNOW
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
Canada’s population is ageing
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
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
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
Select campaigns from Mintel Comperemedia
Scotia Life’s Term 20 invites consumers to take a second look at a simple product
Figure 10: Scotia term life insurance direct mail campaign, April 2017
CIBC offers older Canadians a low-coverage, guaranteed-acceptance product
Figure 11: CIBC guaranteed acceptance life insurance mail campaign, May 2017
Manulife targets Ontario engineers with a special member rate
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
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
Around three in five Canadians have life insurance
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
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
Figure 16: Individual and group life insurance purchase, May 2017
Whole and universal life more likely to be purchased directly
Figure 17: Type of insurance owned, by group and direct purchase, May 2017
REASONS FOR HAVING LIFE INSURANCE
Multiple benefits drive life insurance ownership
Figure 18: Importance of factors motivating life insurance purchase, May 2017
Younger consumers cite more reasons for buying life insurance
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
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
No dependents and cost are the top reasons for not having life insurance
Figure 21: Reasons for not having life insurance, May 2017
Asian Canadians more likely to need guidance on life insurance
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
Figure 23: Reasons for not having life insurance (select), over-55s vs overall population, May 2017
CHOICE OF PROVIDER 
Sun Life and Manulife are the leading providers of individual life insurance
Figure 24: Choice of provider for individual life insurance, May 2017
TD Insurance performs significantly better among younger customers
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
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
Figure 28: Choice of provider for group life insurance, May 2017
Sun Life does significantly better among older employees
Figure 29: Choice of provider for group life insurance (select), by age, May 2017
PURCHASE PREFERENCES
Most consumers are not currently interested in digital purchase of life insurance
Figure 30: Attitudes related to channel preference, May 2017
Around one in four 18-34s research life insurance online before purchase
Figure 31: Attitudes related to the insurance purchase decision, May 2017
Younger consumers more unsure about life insurance
Figure 32: General attitudes about life insurance (% agree), by age, May 2017
Most consumers are not apprehensive about medical questions
Figure 33: Attitudes related to medical testing during the application process, May 2017
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Consumer qualitative research
Abbreviations and terms

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