A new TD Bank Group survey suggested Canada may be on the cusp of a surge in Gen Z entrepreneurship, raising important questions for the insurance industry as new business owners look to manage risk in an increasingly uncertain environment.
The survey found that 73% of Gen Z Canadians are interested in starting their own business. But while enthusiasm runs high, most are not turning to traditional institutions for guidance. Two-thirds (67%) are not seeking support from banks, and many admit to limited financial literacy — gaps that could leave them exposed to risk without proper protection.
For insurers, the findings highlighted an emerging market of first-time entrepreneurs who may underestimate the value of coverage. Only 19% of young entrepreneurs said they had dipped into savings or debt to fund their ventures, underscoring how tight finances could put insurance low on their priority list.
Yet these ventures, whether e-commerce startups or influencer-driven businesses, carry exposures ranging from liability and intellectual property disputes to cyber threats.
The appetite for digital businesses is especially notable: one in four Gen Z respondents said they would launch an e-commerce venture, while 22% see themselves as content creators or influencers. These models come with unique risks around data security, reputational harm, and reliance on third-party platforms, which areas where specialized insurance products could play a critical role.
Despite these risks, 67% of Gen Z business hopefuls admitted they lack the financial knowledge to manage a business effectively, and nearly three in four worry about failure due to inexperience. For insurers and brokers, this presents both a challenge and an opportunity: building awareness around risk transfer while providing tailored products that address the realities of early-stage businesses.
The survey results suggest that mentorship and education will be key. If banks and insurers can step into advisory roles, they may help bridge the gap between entrepreneurial ambition and sustainable growth.
The TD survey was conducted by The Harris Poll Canada from August 6 to 8, 2025, among 530 Canadian Gen Z respondents.
