The Future of Insurance
Toronto, ON (Apr. 10, 2018) – Insurance Bureau of Canada (IBC) has released the results of a survey that shows consumers want tech-enabled insurance products and services, highlighting the need for regulators to permit greater innovation in regulation overseeing the insurance industry.
From digital communications to usage-based insurance, the survey findings showcase that consumers want companies to use the latest technology. Nearly 6 in 10 Canadians (58%) who pay for auto insurance indicate they would choose to receive their insurance documents online or electronically if it were available to them. That number increases to 71% among millennials. In addition, two-thirds of Canadians who have auto insurance agree that determining premiums based on driving performance or vehicle usage is a fair way to price auto insurance.
“We are living in an age of disruption. How we engage with our customers is evolving and consumer expectations are changing,” said Don Forgeron, President and CEO, IBC. “As insurers, we need to have the ability to adapt to the rapid changes that are impacting our business. Only by embracing innovation and new ways of thinking will we be able to keep the door open to new products and services and new ways of delivering them to Canadians.”
Key findings of IBC’s public opinion research include:
- Canadians, especially millennials, want digital communications.
- 58% of Canadians (6 in 10) who pay for auto insurance indicate they would choose to receive their insurance documents online or electronically if this option were available to them. This number rises to 71% for millennials. Today very few insurance documents can be sent electronically.
- 54% of respondents believe online insurance information is just as safe as paper-based insurance information. This number is 61% among millennials.
- Consumers want fair competition.
- Two-thirds of Canadians (66%) who have auto insurance agree that determining premiums based on driving performance or vehicle usage is a fair way to price auto insurance.
- 60% of respondents are willing to share personal information if it means that auto insurance premiums would be lower.
- Autonomous vehicles are on the minds of millennials.
- More than half of millennials (54%) are interested in driving autonomous vehicles, compared to 37% of the general population.
- 58% of millennials say roads will be safer when all vehicles are autonomous.
- Education and advocacy are playing an increasingly prominent role for insurers.
- The majority of Canadians (54%) say their insurance company is their second most trusted source, only after a science or flood expert in their region, for information on how to reduce flood risk at home.
- Canadians want to learn more about their home and auto insurance policies (47% and 45% respectively).
About the Research
IBC conducted a nationwide online study of 1,200 Canadian residents 18 years of age or older between February 5 and February 23, 2018. The margin of error for a strict probability sample for a sample of 2,000 would be ±2.83%, 19 times out of 20. All sample surveys and polls may be subject to multiple sources of error, including, but not limited to, sampling error, coverage error and measurement error.
- Speech: “The Future of Insurance” (Don Forgeron, President and CEO, IBC, at the 2018 Swiss Re Canadian Outlook Breakfast)
- Webpage: Future of Insurance
About Insurance Bureau of Canada
Insurance Bureau of Canada (IBC) is the national industry association representing Canada’s private home, auto and business insurers. Its member companies make up 90% of the property and casualty (P&C) insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to help make affordable home, auto and business insurance available for all Canadians. IBC supports the vision of consumers and governments trusting, valuing and supporting the private P&C insurance industry. It champions key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.
P&C insurance touches the lives of nearly every Canadian and plays a critical role in keeping businesses safe and the Canadian economy strong. It employs more than 120,000 Canadians, pays $9 billion in taxes and has a total premium base of $52 billion.
For more information, visit IBC at www.ibc.ca. If you have a question about home, auto or business insurance, contact IBC’s Consumer Information Centre at 1-844-2ask-IBC.
SOURCE: Insurance Bureau of Canada (IBC)Tags: Digital Insurance, IBC