DECEMBER 21, 2015
New survey about property insurance shows consumer openness to insurance policies tailored to real risks from natural catastrophes
An online survey (cliquez ici pour la version française) of Canadian homeowners shows that they need to recognize the potential impact of natural disasters, such as water and earthquakes, on their property. This, and enhanced understanding of what their insurance covers, would guide them in choosing insurance options that meet their individual circumstances and needs.
“In doing this survey, we wanted to explore perceptions of natural disasters and property insurance. We found that people weren’t clear about the real risks of natural disasters, or the extent of their own coverage,” says CADRI CEO and Chairperson Alain Thibault. “People’s need for property insurance is very different today than when it was first offered. We conducted this survey because property insurance is changing. Coverage is being adapted and new solutions introduced to meet the needs of consumers.”
Asked about natural disasters – flood, windstorms, rainstorms, freezing rain, hailstorms, wildfire and earthquakes – many Canadians perceive these happen more frequently than in the past but are generally not alarmed until they are exposed to some facts about the increasing impact of catastrophes. Only then are they more concerned about the down-side risks.
“It’s interesting to see that some key facts about the occurrence of natural disasters and insurance coverage can change a consumer’s perception of his or her risk,” observes Denis Guertin, Chair, CADRI Property Task Force.
The study also highlighted that the majority of Canadians said that they thought their property insurance premiums were “fair” and that going forward they were interested in choosing among insurance products that suited their individual needs and risk tolerance.
“The people we talked to expected industry and government to mitigate the effects of natural disasters on their quality of life,” concludes Thibault.
Working with Substance Strategies, an independent research company, CADRI conducted an online survey with homeowners between 25 March and 7 April, 2015. The survey included more than 5,000 respondents from the Angus Reid Forum across Canada. It included more than 1,000 respondents from each of BC, Alberta, Ontario and Quebec. Participants had to be over 18 years of age and own a residential property, have homeowner’s insurance and take part in related decisions.