Almost half of Canadians feel uncertain or ill-informed about the insurance products currently available to them, a new survey by consultancy firm Capco found.
In a report which surveyed 1,000 Canadians, Capco uncovered that just under half of the respondents (46%) indicated that they felt unsure or ill-informed about the availability of insurance products. This confidence level in insurance products is the lowest of the 13 countries Capco surveyed, wherein the global average for customer certainty in insurance is 63%. It was also noted that some of the countries surveyed have less mature economies and insurance industries than Canada.
Capco also found that Canada has the largest gender gap in terms of perceived insurance knowledge, with Canadian women considering themselves the least well-informed demographic globally, at 43%. Meanwhile, Canadian men are below the global average in terms of perceived understanding of insurance at 63%, versus the global average of 67%.
The digitalization of insurance could provide customers greater transparency into which insurance products are “expensive” and “complex,” Capco suggested. Sixty-one per cent (61%) of Gen Z (respondents aged 18-24) and another 61% of Gen Y (aged 25-34) policy owners said they want a better digital experience from their insurer. It was also found that across all age groups, 58% of respondents said they favour the concept of an app that provides better visibility across all their financial products.
Many consumers are willing to share their personal data for better premiums, with younger generations the most willing, Capco found. Ninety per cent (90%) of Gen Z respondents, 75% of Gen Y respondents, and 65% of Xennial respondents said they would share their data in some shape or form. Smartwatches and smart devices are the most favoured methods for this data gathering.
But while digital innovation is a key component in keeping loyal customers, price remains a critical factor in attracting new consumers, the survey uncovered. Among uninsured respondents, when asked what would convince them to get insurance, the leading answer was “more affordable premiums” (58%).
“Insurers can deliver value-add customer experiences that create more customer touchpoints over the policy term. Most consumers are not engaging with their financial products actively, impacting the level of their insurance coverage,” said Capco Canada partner Joanna Lewis.
Lewis added that Capco’s study reveals that confidence, availability of insurance information, and education levels all have a dramatic effect on the number of policies owned.
“We, therefore, advise insurers to make customer engagement a priority, and one of the ways they can do this is by giving consumers reasons to engage and by demystifying insurance, such as through simplified offerings, apps and providing personalized insights,” the partner prefaced.