Que­bec res­i­dents are more likely than other Cana­di­ans to own a life in­sur­ance pol­icy.

Sur­vey sug­gests that Que­bec res­i­dents tend to be more risk-averse than other Cana­di­ans

Investment Executive - - FRONT PAGE - BY RUDY MEZZETTA

que­beck­ers are more likely to own life and dis­abil­ity in­sur­ance (DI) prod­ucts, but less likely to own health in­sur­ance, than Cana­di­ans in the rest of the coun­try. These find­ings were drawn from re­cent re­search con­ducted by Mis­sis­sauga, Ont.-based Credo Con­sult­ing Inc. for the on­go­ing Fi­nan­cial Com­fort Zone Study, a na­tional con­sumer sur­vey con­ducted by Credo in part­ner­ship with Mon­treal-based TC Me­dia’s in­vest­ment group. (TC Me­dia pub­lishes In­vest­ment Ex­ec­u­tive.)

Res­i­dents of Que­bec par­tic­i­pat­ing in the sur­vey also were more likely than other par­tic­i­pat­ing Cana­di­ans to say that they had a good un­der­stand­ing of the fi­nan­cial mat­ters they needed to ad­dress at their stage in life, and that they avoid fi­nan­cial risk.

This edi­tion of the sur­vey ex­am­ined dif­fer­ences in the at­ti­tudes of Cana­di­ans re­gard­ing fi­nan­cial prod­ucts and ad­vice in four ma­jor re­gions: Western Canada (the four western prov­inces), Que­bec, On­tario and At­lantic Canada (the four At­lantic prov­inces).

Among sur­vey par­tic­i­pants, 68% of Que­beck­ers said they owned in­sur­ance prod­ucts vs 67% of At­lantic Cana­di­ans, 61% of On­tar­i­ans and 60% of Western Cana­di­ans.

Among all sur­vey par­tic­i­pants who said they owned in­sur­ance, 78% in Que­bec said they owned life in­sur­ance vs 70% of At­lantic Cana­di­ans and 64% of both Western Cana­di­ans and On­tar­i­ans. In ad­di­tion, 30% of Que­bec par­tic­i­pants said they owned DI , vs 29% of At­lantic Cana­di­ans, 27% of Western Cana­di­ans and 20% of On­tar­i­ans.

These re­sults don’t sur­prise An­dré Lan­glois, ex­ec­u­tive vice pres­i­dent of in­di­vid­ual in­sur­ance with Des­jardins Group in Mon­treal, who sug­gests Que­bec has long been a strong in­sur­ance mar­ket. Part of the rea­son for that may be a ten­dency among Que­beck­ers to be con­ser­va­tive in their fi­nan­cial de­ci­sions.

“His­tor­i­cally, in Que­bec, in­vestors have been risk-averse,” Lan­glois says.

Among sur­veyed Que­beck­ers, 44% strongly agreed with the state­ment: “I avoid fi­nan­cial risk.” In com­par­i­son, just 39% of At­lantic Cana­di­ans, 36% of On­tar­i­ans and 34% of Western Cana­di­ans said they strongly agreed with the same state­ment.

In ad­di­tion, among sur­veyed Que­beck­ers, 47% said that they strongly agreed with the state­ment: “I have a good un­der­stand­ing of the fi­nan­cial mat­ters I need to ad­dress at this stage in my life.” In com­par­i­son, just 43% of At­lantic Cana­di­ans, 42% of On­tar­i­ans and 40% of Western Cana­di­ans said they strongly agreed with the same state­ment.

An­other rea­son for the rel­a­tively high own­er­ship of life and DI prod­ucts among Que­beck­ers, Lan­glois says, might be the pro­lif­er­a­tion of cred­i­tor in­sur­ance prod­ucts in the prov­ince. He cites his firm’s prod­uct reach as a case in point: “[Des­jardins’] high mar­ket share in terms of mort­gage in­sur­ance may trans­late into higher own­er­ship of life or DI prod­ucts.”

The trend favour­ing in­sur­ance own­er­ship in the prov­ince, how­ever, does not ex­tend to health in­sur­ance,as the sur­vey found. Among sur­vey par­tic­i­pants in Que­bec, just 50% said they owned health in­sur­ance. In com­par­i­son, 66% of At­lantic Cana­di­ans, 65% of Western Cana­di­ans and 53% of On­tar­i­ans said they owned health in­sur­ance.

Lan­glois sug­gests that the rel­a­tively low rate of health in­sur­ance own­er­ship in Que­bec could be be­cause some res­i­dents be­lieve that pub­licly pro­vided cov­er­age will be suf­fi­cient for their needs.

Says Lan­glois: “Some [Que­bec] clients will ask us, ‘Why would I buy such an in­sur­ance prod­uct if the gov­ern­ment cov­ers it?’”

Be­low are some find­ings from the other three re­gions:

on­tario. On­tar­i­ans were far more likely than Cana­di­ans in the other three re­gions to say they know how much they pay their fi­nan­cial ad­vi­sor and also more likely to be con­sid­er­ing find­ing a new ad­vi­sor.

On­tar­i­ans who work with an ad­vi­sor gave an av­er­age score of 6.53 out of 10 — with 10 indi­cat­ing the strong­est agree­ment — to the state­ment: “I know how much I pay my fi­nan­cial ad­vi­sor.” In com­par­i­son, At­lantic Cana­di­ans gave a 6.30 score; Western Cana­di­ans, a 6.29 score; and Que­beck­ers, a 5.59 score.

In ad­di­tion, On­tar­i­ans who work with a fi­nan­cial ad­vi­sor gave an av­er­age score of 3.22 out of 10 to the state­ment: “I am con­sid­er­ing find­ing a new fi­nan­cial ad­vi­sor.” In com­par­i­son, Western Cana­di­ans gave a 2.67 score; Que­beck­ers, a 2.63 score; and At­lantic Cana­di­ans, a 2.27 score.

western canada. Western Cana­di­ans are more likely to work with a fi­nan­cial ad­vi­sor, and to have TFSAs and RRSPs vs Cana­di­ans in other re­gions.

Among sur­vey par­tic­i­pants in Western Canada, 49% said they work with a fi­nan­cial ad­vi­sor, com­pared with 48% of sur­vey par­tic­i­pants in On­tario, 47% in Que­bec and 45% in At­lantic Canada.

As for TFSA own­er­ship, 60% of Western Cana­di­ans par­tic­i­pat­ing in the sur­vey re­ported hav­ing one, vs 59% of On­tar­i­ans, 52% of Que­beck­ers and 50% of At­lantic Cana­di­ans.

Among sur­vey par­tic­i­pants in Western Canada, 60% re­ported hav­ing an RRSP, vs 58% of On­tar­i­ans, 56% of Que­beck­ers and 49% of At­lantic Cana­di­ans.

at­lantic canada. Although sur­vey par­tic­i­pants in At­lantic Canada were the least likely among Cana­di­ans sur­veyed to say they work with an ad­vi­sor, those who did were more likely to in­di­cate they had a strong re­la­tion­ship with their ad­vi­sor vs sur­vey par­tic­i­pants in other re­gions of Canada.

The on­line Fi­nan­cial Com­fort Zone Study has polled 18,000 Cana­di­ans thus far. The sur­vey is meant to gain in­sight into the re­la­tion­ships among fi­nan­cial ad­vice, fi­nan­cial well-be­ing and over­all life sat­is­fac­tion in Cana­dian so­ci­ety. Cana­di­ans are polled monthly, and the num­ber of sur­vey par­tic­i­pants will in­crease each month.


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