A recent report from Securian Canada highlighted a significant disconnect between insurance awareness and coverage among newcomers to Canada.
While most newcomers understand the value of insurance in protecting their financial future, the report indicated that many remain uninsured or underinsured due to cost, confusion, and lack of access to guidance.
According to the findings, 78% of newcomers recognize the importance of insurance, and 62% of those who purchased life insurance did so primarily to protect their families. However, only 49% reported feeling confident navigating the Canadian insurance system.
Insurance confidence remains low compared to other financial tasks. Just 9% of respondents said they were very confident managing insurance matters, while 38% reported low confidence and 11% said they were not confident at all. This uncertainty appears tied to broader issues of accessibility and transparency.
Many respondents cited concerns about being misled (42%), challenges in finding reliable information (29%), and the cost of professional advice (33%) as barriers to understanding or purchasing insurance. One-third also indicated that technical language and an overwhelming number of choices make the process difficult.
This lack of clarity and guidance is translating into insurance gaps. One in five newcomers has no insurance coverage at all, and nearly two-thirds are considered underinsured. This includes individuals with dependents but no life insurance, people in paid employment without disability insurance, and those with health conditions lacking appropriate health or critical illness coverage.
Affordability is a leading issue. Among uninsured respondents, 34% cited cost as the main reason for not having coverage, while 29% said they had more urgent expenses. A further 19% admitted they did not understand how insurance works in Canada.
Despite these challenges, personal networks continue to influence insurance decisions. More than half (52%) of newcomers said they would turn to friends and family in Canada for information, while 40% would consult a financial advisor. Digital tools also play a growing role, with 53% preferring to purchase insurance online and 66% favouring digital-first platforms for managing their insurance needs.
The findings point to a clear need for insurance providers to adapt their offerings to better meet the needs of Canada’s diverse and growing newcomer population, according to Securian Canada. The company said providing clearer guidance, improving affordability, and expanding digital accessibility could help bridge existing coverage gaps and reduce financial vulnerability among newcomers.
