Advisors have their work cut out for them when getting clients to consider buying insurance, as a recent survey shows that more than half of Canadians would rather shovel snow or go to the dentist than think or talk about insurance coverage.
The survey of 1,000 Canadians, commissioned by TD Insurance and conducted by Research House (a member of the Environics Group), reveals that researching insurance is very low on the list of unpleasant tasks that Canadians would choose to undertake. In addition to shoveling and visiting the dentist, 62% of respondents said they would rather spend a Saturday doing laundry or even wait in an airport security line than discuss insurance.
“Studies have shown that many people prefer to avoid thinking about negative situations, even if they believe those situations are likely to happen,” said Dr. Edwin Weinstein, a psychologist and president of the Brondesbury Group, which advised TD on its research for this study. “Shopping for insurance is one of those times in life where you’re forced to think about situations you would rather avoid. It’s not surprising that people would choose to shovel snow than consider the possibility that unpleasant things can happen.”
Given Canadians’ tendency to avoid thinking about insurance, advisors have an important role to play in prompting clients to consider it. They can do this by helping clients to understand the risks they face — something many Canadians have trouble doing on their own.
The survey revealed that in general, Canadians tend to underestimate risks. For example, 81% of those surveyed underestimated the likelihood of a home break-in, which is about 1 in 200 according to Statistics Canada.
“When the probability of risks are not well-known it can be difficult to seek out insurance coverage that offers the right protection,” said Craig Richardson, vice president at TD Insurance.
The results also showed that risk assessments differ across gender and age groups. For example, men were more likely than women to identify themselves as above average in safety consciousness and health. Almost three quarters of men (72%) said they were more safety conscious than others, whereas only 62% of women made the same claim.
Men were also more likely than women to believe they were healthier than others their age: 53% of men said they believe they have above-average health, compared to just 44% of women. Interestingly, seniors over 65 years of age were most likely to rate themselves healthier than others their age, with 65% choosing this option.
“It’s great to have a positive outlook in life, but it’s also important to be prepared,” said Richardson. “Our advice is to expect the best, but plan for bumps in the road.”