For many newcomers to Canada, friends and family remain the first stop for financial and insurance advice – not brokers or insurers. According to Securian Canada’s Newcomers & Insurance Report, more than half (52%) of respondents turn to friends and family for guidance, while 40 percent said they would consult a financial advisor. The findings highlight a critical trust gap in how newcomers navigate coverage decisions.
Nigel Branker (pictured), president and CEO of Securian Canada, said the pattern (in part) stems from a fear of being misled, with 42% of respondents citing that as their biggest challenge in understanding the Canadian insurance system. To bridge this gap, he argued, insurers and brokers must meet newcomers where they are – in their communities.
It’s natural for newcomers to turn to friends and family first, Branker told Insurance Business. “In fact, our data shows that more than half (53%) of respondents say they make financial decisions with someone in their household and 52% talk to friends and family in Canada for suggestions when seeking information about insurance,” he said.
For insurers to earn a similar level of trust, they need to be clear, transparent, and present in the clients’ and customers’ communities, Branker explained.
That, he added, could mean engaging with cultural associations or community groups to provide education on how insurance can help newcomers build a financial foundation or offering support in different languages.
“When advice is both accessible and delivered with empathy, insurers can start becoming the trusted first call for newcomers looking to protect their financial futures,” he said.
While trust is central, Securian’s research also shows that affordability remains a major barrier for newcomers. Despite being well-educated and often employed, one in five newcomers report having no insurance at all, and nearly two-thirds are underinsured.
Branker noted that cost concerns combine with uncertainty about how Canada’s insurance system works, leaving many newcomers hesitant to buy coverage. “Cost is a major barrier, but so is uncertainty as many don’t know how insurance works in Canada or worry about being misled,” he said.
He emphasized that insurers can help close this gap by making products more accessible – not only through pricing, but also through clarity and delivery. That means offering affordable coverage options, using plain language to explain terms and benefits, and investing in digital solutions that make insurance easier to purchase and manage.
Beyond cost and trust, newcomers are also reshaping expectations for how insurance should be delivered. Securian’s research found that 53% of newcomers prefer to buy insurance online, and two-thirds (66%) would rather manage their policies digitally. That preference highlights the importance of convenience – but Branker stressed that it doesn’t mean newcomers are ready to forgo personal guidance.
“Many newcomers start their insurance journey by speaking with someone they trust… but at the point of purchase or for ongoing maintenance like filing claims, or managing policies, they want the freedom to do things digitally,” he said.
This creates a clear mandate for insurers to design hybrid solutions that blend technology with professional advice. Straightforward, everyday needs – such as paying premiums, checking coverage, or submitting claims – can be handled efficiently through digital channels. But when situations become complex or emotionally charged, newcomers want quick access to an advisor who can clarify options and ensure they’re making sound decisions, Branker said.
“It’s not about choosing between digital or human solutions,” he said. “It’s about making sure the two work together.”
Even when newcomers recognize the importance of insurance, many struggle to feel secure in their decisions.
Securian’s research found that while 78% of respondents see insurance as essential – with 62% of life insurance buyers motivated by protecting their family’s financial future – less than half (49%) feel confident navigating Canada’s insurance system.
Confidence levels lag behind other financial tasks, with only nine per cent (9%) of newcomers describing themselves as “very confident” and 40% “somewhat confident.” For brokers, that lack of certainty underscores the importance of providing reassurance alongside products.
