Quebec-based credit union federation learned of data breach from police
Poll also uncovers travel pet peeves, most important items to insure, claims barriers
- Canadians’ biggest pet peeves while travelling by air include bad travel etiquette, followed by flight delays and going through airport security. And when it comes to the worst things they’ve lost while travelling, the top three items are baggage, their passport and their travelling companion.
- Over a quarter of Canadians have made an insurance claim as a result of something that happened to them while travelling, with visits to the doctor accounting for 33 per cent of those claims, followed by flight delays.
- When asked the most important item to insure while on vacation, almost three-quarters had said themselves, followed by luggage, rental car and mobile phone.
TORONTO, June 19, 2019 /CNW/ – Tight airport security and flight delays can definitely be a downside to air travel, but the biggest pet peeve for over a quarter (27 per cent) of Canadians is bad travel etiquette, according to a recent RBC Insurance survey. And when it comes to the worst things they’ve lost along the way, the top three items are baggage (20 per cent), followed by their passport (13 per cent) and, interestingly, their travelling companion (6 per cent).
However, the overall pleasures of air travel seem to outweigh the pet-peeves. Canadians are often on the move, travelling outside of their home province by air roughly once every six to seven months.
Before you go, ensure you’re insured
Along with such frequent travel comes a greater opportunity for mishaps to occur that could result in expensive bills. In fact, one-quarter (26 per cent) of Canadians have made an insurance claim as a result of something that happened to them while travelling. One-third (33 per cent) of those claims were related to visits to a doctor, hospital or clinic, while flight delays account for one-quarter (24 per cent) of claims.
“Travel is a wonderful, educational experience and it’s great to see that Canadians are exploring the world outside their own province or country so frequently,” said Stacey Hughes-Brooks, Head of Travel, RBC Insurance. “However, given the data from the survey, a quarter of Canadians have needed to make an insurance claim so it’s best to make sure not only that you have coverage, but that you have enough.”
When asked the most important item to insure while on vacation, almost three-quarters (72 per cent) responded themselves – and this increases among travellers aged 55 and over (81 per cent) as compared to younger travellers (64 per cent). When it comes to insuring physical belongings, 12 per cent stated luggage is the next most important item, followed by a rental car (7 per cent) and mobile phone (5 per cent).
Barriers to filing travel insurance claims
Of those Canadians who have never made a travel insurance claim, 79 per cent have been lucky enough to say they have never been in a situation where they needed to make one. However, the remaining 21 per cent said they needed to file a claim but did not or were unable to do so. The top reasons for not making a claim include that it was too much of a hassle, they were underinsured, they incorrectly assumed they were covered by their insurance policy or their credit card or they didn’t know where to go.
“With so many credit cards offering travel insurance many Canadians may assume that they are covered if something happens while travelling,” adds Stacey. “It’s important that Canadians do their homework to understand their coverage otherwise they could find themselves out-of-pocket for minor or major expenses.”
RBC Insurance offers the following tips for Canadian travellers this year:
- Consider purchasing travel insurance even if traveling within Canada.
- Ensure you understand what your policy does and does not cover and what other coverages you may have through work or credit cards.
- Label luggage by putting your name and contact information on the inside and outside of the bag.
About the RBC Insurance Survey
These are some of the findings of an Ipsos poll conducted between May 23-27, 2019 on behalf of RBC Insurance. For this survey, a sample of 1,000 Canadians aged 18 years and over were interviewed. Weighting was then employed to balance demographics to ensure that the sample’s composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ±3.5 percentage points, 19 times out of 20, had all Canadian adults been polled. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.
About RBC Insurance
RBC Insurance® offers a wide range of life, health, home, auto, travel, wealth, annuities and reinsurance advice and solutions, as well as creditor and business insurance services to individual, business and group clients. RBC Insurance is the brand name for the insurance operating entities of Royal Bank of Canada, one of North America’s leading diversified financial services companies. RBC Insurance is among the largest Canadian bank-owned insurance organizations, with approximately 2,900 employees who serve more than five million clients globally. For more information, please visit rbcinsurance.com.
SOURCE RBC Insurance
Maurie Backman, The Motley Fool
You’ve probably been told time and time again that you should have a life insurance policy, but if you’re like many consumers, you’ve been putting it off due to one key factor: money. It’s true that life insurance isn’t always cheap, but there are steps you can take to make it more affordable. Here are a few to begin with.
1. Get a term policy
You have two primary options for buying life insurance: permanent life insurance and term life insurance. With the former, you’re covered forever, and your policy accumulates a cash value that can serve as an income source for you when you need it. With the latter, you’re only covered for a specific period of time (hence the name “term”), and once your policy runs out, you get nothing. You also don’t accumulate a cash value with a term life policy. That said, term life insurance is generally a lot cheaper than permanent insurance, since you forgo the benefit of cash value and indefinite coverage, so if cost is a concern, it pays to look into term policies.
2. Apply when you’re relatively young
The younger you are when you apply for life insurance, the lower a premium rate you’ll generally snag. Many people put off life insurance until their 40s or 50s because they don’t want to start making premium payments earlier on. But by waiting that long, you risk getting slapped with a prohibitively high premium instead.
3. Get healthier
The healthier you are, the easier it becomes to snag an affordable premium rate on a life insurance policy. Therefore, if you work on improving the picture of your health, you could save a bundle. If you’re overweight, aim to shed enough pounds to get into a healthy range. If you’re underweight, do the opposite, because you will be penalized any time your weight lands in what’s considered an unhealthy range. And of course, if you’re a smoker, kick the habit — incidentally, it’ll save you money, too.
4. Buy only the coverage you need
You’ll pay more for a life insurance policy with a $2 million death benefit than you will for a policy that pays a $500,000 death benefit. If you want to keep your premiums manageable, don’t overbuy coverage.
How should you calculate your coverage level? A good way to start is to establish a benefit that’s a certain multiple of your income — say, 5 or 10 times that sum. Next, evaluate your outstanding debt, like your mortgage, and aim for enough coverage to pay it off. From there, think about financial goals you have for your family, and include enough money to pay for them (putting kids through college, for example). Finally, make sure there’s enough money in your death benefit to cover your funeral costs.
Let’s say you earn $60,000 a year and want five times that amount as a basic death benefit for a total of $300,000. Let’s also assume you want to include enough money to pay off your $100,000 mortgage, you want another $100,000 to put your child through college and another $10,000 to ensure that your funeral is taken care of. That means you’re looking at a death benefit of $510,000. If that’s the case, don’t buy a policy with a $1 million payout — you don’t need it.
You don’t need to be rich to get life insurance; you just need people in your life who stand to suffer financially in the event of your passing. If those people exist, then do some research and aim to find an affordable policy that gives your loved ones — and you — the peace of mind you all deserve.
The experience of Canadians with Credit Protection Insurance (CPI) on their mortgages and Home Equity Lines of Credit (HELOCs) is very positive, with 87% saying it is a convenient way to protect themselves and/or their families against major financial setbacks arising from death, disability, critical illness, or job loss.
Canadians with CPI coverage also report that they are somewhat or highly satisfied with the purchase experience overall (87%), and are confident in their knowledge about CPI products (90% at time of purchase). In addition, CPI holders say their expectations of the claims process are being met by the industry, with 80% reporting satisfaction with their claims experience (94% for those whose claim was paid).
Those are the key findings of new public opinion research by Pollara Strategic Insights that asked Canadians about their experience with CPI on their mortgage and/or HELOC. This type of insurance, also known as creditor’s insurance, is used to pay off or pay down a mortgage or HELOC, or to make debt payments in the event of covered occurrences such as death, disability, critical illness, or job loss. CPI coverage is typically secured through the financial institution providing the consumer’s mortgage or HELOC financing, and it is provided under a group policy, thereby allowing more Canadians to be insured at economical standard group rates.
According to the research, 83% of Canadians with CPI coverage said it is an effective way to protect themselves and their families from unexpected life occurrences. Furthermore, 71% said that without CPI, they do not know how they and/or their family would be able to cope, should an unexpected life occurrence negatively impact them financially – for example, not being able to work and earn a regular income. And 70% said CPI is an affordable insurance option.
With respect to the purchase process experienced by CPI holders, 87% said they were satisfied with the overall purchase process; 77% reported satisfaction with the product explanations provided to them; and 74% said they were satisfied with the information provided to them to make an informed purchase decision.
Canadians with CPI coverage also expressed confidence in the CPI claims process, and that their expectations for claims payouts are being met or exceeded. For example, 89% of survivors/next-of-kin who made a CPI life insurance claim reported that it was paid. (The 89% level of CPI life insurance claims payouts reported by the survivors/next-of-kin of CPI insureds in the survey is close to the level found in aggregated self-reported data from CAFII members, which shows that 94% of CPI life insurance claims were paid in the 2018 fiscal year.)
With respect to the factors which Canadians believe are the most important when purchasing Creditor Protection Insurance:
- 93% said benefits and features of the coverage;
- 93% said price;
- 92% said benefit payment amount of coverage;
- 89% said ease of overall purchase process; and,
- 88% said being able to speak to someone to answer my questions.
Canadians also said they have a reasonable understanding of CPI coverage terms and limitations, and about the amount of coverage. For example, at the time of signing up for their CPI coverage, 90% of insureds said they understood “very well” or understood somewhat their credit protection insurance terms.
The survey also identified some areas which CAFII members and other providers of CPI coverage on mortgages and HELOCs in Canada can look at to improve the consumer’s experience with this insurance.
For example, 25% of CPI claimants said they had made a complaint about the claims process, with the top two complaints being the following:
- 35% complained about the length of time it took to process the claim; and,
- 32% complained about the lack of updates during the process.
However, 85% of claimants who made a complaint said they were satisfied with how their complaint was handled.
Furthermore, some 22% of CPI holder respondents expressed a lack of confidence that a life insurance claim would be paid, without even having made a claim. As this level of confidence is well below the actual claims payout ratio, it is an issue that is concerning to the industry.
“We’re pleased that Canadians feel Credit Protection Insurance is a convenient, effective and affordable type of financial protection for them and their families,” said Keith Martin, Co-Executive Director of the Canadian Association of Financial Institutions in Insurance (CAFII), which commissioned the Pollara research. “However, the survey also shows that there is room for improvement. As an industry, we will continue to look for ways to improve customer satisfaction, and enhance the value to consumers of the Credit Protection Insurance products that our members provide.”
These are the key results from a national online survey of 1,003 adult Canadians who have Credit Protection Insurance on a mortgage and/or home equity line of credit. The survey was conducted from October 3 to 16, 2018.
The Canadian Association of Financial Institutions in Insurance is a not-for-profit industry Association dedicated to the development of an open and flexible insurance marketplace. CAFII believes that consumers are best served when they have meaningful choice in the purchase of insurance products and services. CAFII’s members include the insurance arms of Canada’s major financial institutions – BMO Insurance; CIBC Insurance; Desjardins Financial Security; National Bank Insurance; RBC Insurance; ScotiaLife Financial; and TD Insurance – along with major industry players Assurant; Canada Life; Canadian Premier Life Insurance Company; CUMIS Services Incorporated; and Manulife (The Manufacturers Life Insurance Company).
About Pollara Strategic Insights:
Founded in 1980, Pollara Strategic Insights is one of Canada’s premier full-service research firms – a collaborative team of senior research veterans who are passionate about conducting research through hands–on creativity and customized solutions. Taking full advantage of their comprehensive toolbox of industry-leading quantitative and qualitative methodologies and analytical techniques, Pollara provides research-based strategic advice to a wide array of clients across all sectors on a local, national, and global scale.
The Excerpreted article was written by Ryan Vanzo | The Motley Fool
Insurance companies make for some of the most reliable stocks on the market. Their business models necessitate this stability.
Insurance companies traditionally make money through premiums, but many are increasingly writing them at breakeven prices. Where’s the profit, then?
Insurance companies get to keep your premiums until they have to pay out claims. This money is called “float.” By investing the float, insurance companies can make a small profit until it needs to return the money to policyholders.
As insurance companies need to constantly service policy claims, they’re typically not investing a huge chunk of the float into risky assets like stocks. Instead, most portfolios are invested in low-risk securities like government and corporate debt.
By investing in an insurance company, you’re essentially betting on a company that can invest “free” money into low-risk assets. It’s now understandable why insurance stocks are so stable.
Want to get in on the action? Here are three top-ranked picks for your portfolio.
Growth plus income
What greater way to begin this list than with Great-West Lifeco Inc (TSX:GWO), which has a fortress-like business?
Since 1995, shares have risen more than 1,000%. It’s also paid a steadily rising dividend along the way. The dividend payout now results in a 5.5% annual yield.
With five subsidiaries targeting regional opportunities in North America, Europe, and Asia, the company has never been more diversified. It has investment-grade ratings from every credit agency and recently bumped the quarterly dividend from $0.389 per share to $0.413. The payout ratio is still under 60%, so there’s plenty of cushion.
A $2 billion share buyback program should allow the company to return capital to shareholders in a tax-efficient manner.
If a bear market hits, expect this stock to easily outperform the market.
Even more diversification
Sun Life Financial Inc (TSX:SLF)(NYSE:SLF) is one of the largest life insurance companies in the world. Given that it was founded in the 1800s, it’s also one of the oldest.
With a 4% dividend and a valuation of just 8 times forward earnings, now looks like the ideal time to pile into this slow-but-steady stock.
On nearly any metric, the company is growing. Over the last four years, earnings have grown by 13% annually while the dividend has grown by 7% per year. Return on equity recently popped to 14.2%.
Management has been incentivized to ensure that this growth remains on track. In the next few years, the company is targeting annual EPS growth of 8% to 10% while maintaining a payout ratio of 40% to 50%.
Due to its diversification, Sun Life is better positioned than most insurers to avoid a share price collapse in the face of recession. Just one-third of profits come from Canada, with the rest split between Asia, the U.S., and the U.K.
Plus, only 3% of the company’s portfolio is invested in equities, making its float one of the most reliable on this list.
Bigger isn’t better
With a market cap of $5.6 billion, Industrial Alliance Insurance (TSX:IAG) is by far the smallest stock on this list. The dividend is also smaller at just 3.4%.
Don’t stop reading, though—there’s real value here.
If you invested $10,000 in 2000, you nest egg would now be worth more than $70,000. That’s a better return than the larger peers on this list. Sometimes smaller really is better, as it allows a company to grow faster for longer without hitting structural limitations due to size.
Since 2004, book value has increased by 9.7% per year. The stock has largely followed suit, but not always in perfect tandem.
Today, shares trade at around book value. Buying at this valuation has consistently produced market-beating returns for investors.
At 1.1 times book, this is your opportunity to buy this long-term winner on the cheap.
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Source: The Motley Fool
With moving day fast approaching, Insurance Bureau of Canada (IBC) would like to point out that 37% of tenants are not insured, even though home insurance could make all the difference in case of loss.
Average premium for tenants: $281 in 2017
According to the data collected by IBC from its members, it costs tenants less than $1 a day, or $281 on average per year, to insure their belongings. However, the average claim paid out by insurers in 2017 was $5,542.
IBC notes that home insurance covers policyholders’:
- Belongings (furniture, clothing, electronic equipment, etc.) based on an amount determined by the insured
- Civil liability for damages they may unintentionally cause someone else
- Additional living expenses for lodging and food payable by a tenant following a covered loss
“Every year, we hear sad stories of families that have lost everything. We’d like to make tenants aware of the importance of protecting their property by having insurance. Contrary to popular belief, the building owner’s insurance doesn’t cover the tenant’s property. So it makes even more sense to look into getting and shopping around for tenant insurance,” notes Line Crevier, Supervisor, Technical Affairs, at Insurance Bureau of Canada.
Property inventory: a key stage
The Personal Property Inventory is IBC’s most popular brochure. A revised and user-friendly PDF version has just been published to help users list all of their belongings. This comes in handy when purchasing a policy that includes an insurance amount that covers one’s belongings. In addition, this stage could facilitate the claims process in case of loss.
“You’d be surprised to learn just how much more you own than you think! That’s why we’re encouraging everyone to make an inventory of their belongings. It’s a key stage when purchasing coverage that meets one’s needs”, added Ms. Crevier.
The Personal Property Inventory is available at Infoassurance.ca.
Making moving easier
As July 1 approaches, IBC has some tips to share:
- Home insurance covers the tenant’s property at his two addresses for a period of 30 days
- Each co-tenant or spouse who has been living with the tenant for less than one year needs to be added to the home insurance policy
- It’s important to inform one’s home and auto insurer of the new address as premiums vary from city to city, or neighbourhood to neighbourhood.
Insurance Bureau of Canada, which groups the majority Canada’s P&C insurers, offers various services to consumers in order to inform and assist them when purchasing car or home insurance, or making a claim. For all other information, we invite you to contact our Insurance Information Centre at 1-877-288-4321, or visit our web site at www.infoinsurance.ca.
SOURCE Insurance Bureau of Canada