72% of Canadian insurance consumers say the pandemic has them concerned about their financial wellbeing
EY survey finds customer behaviours and priorities are evolving
- 45% of consumers plan to save more and pay off debts
- 70% of respondents want home-protection and usage-based policies, given remote working
- Social responsibility gaining ground in consumer purchasing decisions
TORONTO, March 16, 2021 /CNW/ - The EY Global Insurance Consumer survey reveals that 72% of Canadians are concerned about their financial wellbeing as a result of the COVID-19 pandemic, and nearly half (45%) plan to save more and pay off debts to mitigate future financial uncertainty.
"Given growing concern over financial wellbeing, we're seeing a clear appetite for accessible insurance products that protect against existing and emerging risks," says Janice Deganis, EY Canada Insurance Leader. "With consumers spending more time at home and online, new concerns are mounting over things such as protection against cyber fraud or paying insurance for a vehicle they're driving less. Canadian insurers will have to update their products and services accordingly if they want to align with consumer values, while tapping into future demand and growth opportunities."
Heightened anxiety around financial security is pushing consumers to look for cost-effective insurance options. Respondents are willing to provide personal data (70%) or wear a fitness tracker (67%) in exchange for discounts such as lower premiums or customized monthly rates.
In addition, demand for loss of income insurance is high, including policies that pay mortgage costs for three months (64%) or cover other existing financial commitments such as credit card bills (71%) and secondary education savings plans (66%) in the event of job loss.
Going forward, such emerging expectations will be paired with a stronger call for insurers to activate around corporate social purpose. More than half of respondents reported that a firm's commitment to social responsibility causes – like income equality (80%), environmentalism and racial injustice (78%) – are important factors when deciding to purchase insurance.
"Insurers have a unique opportunity to engage a socially active audience by amplifying and better communicating their efforts around policies and investments to promote diversity and inclusion, as well as environmental, social and corporate governance related initiatives," says Deganis. "Players that commit to strategic change and are bold in living their purpose will emerge as winners."
To learn more about the EY Global Insurance Consumer survey, click here.
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This news release has been issued by Ernst & Young LLP.
SOURCE EY (Ernst & Young)
Dina Elshurafa, [email protected], 416 941 1818; Victoria McQueen, [email protected], 416 943 3141; Chiara Battaglia, [email protected], 514 833 3337
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