Canada Creditor and Travel Insurance Market

Canada Creditor and Travel Insurance Market Overview:

The Canada creditor and travel insurance market size reached US$ 270 Million in 2023. Looking forward, IMARC Group expects the market to reach US$ 1400 Million by 2032, exhibiting a growth rate (CAGR) of 19.20% during 2024-2032. The rising consumer awareness, increasing travel frequency, stringent financial regulations, the growing demand for financial security, the expansion of digital platforms for insurance services, and enhanced product offerings tailored to diverse customer needs are some of the major factors driving the growth of the market.

Canada Creditor and Travel Insurance Market Trends:

Rising Consumer Awareness and Financial Security Demand

Canadians are increasingly recognizing the importance of protecting their financial health and assets which is fueling the market growth. This heightened awareness drives the demand for creditor and travel insurance policies, as individuals seek to safeguard their finances against unexpected events and emergencies. For instance, in January 2024, InsureMyTrip, Canada's rapidly growing travel insurance comparison website announced the addition of Travelex Insurance Services Canada Inc. to its portfolio of travel insurance providers. InsureMyTrip's Canadian travelers now can select travel protection plans provided by Travelex, part of the Zurich family of global brands. This new partnership further enhances InsureMyTrip.ca's commitment to delivering a comprehensive range of insurance options catering to the diverse needs of Canadian travelers. The newly launched InsureMyTrip.ca is set to become the premier destination for travel insurance comparisons in Canada. The website caters to both Canadian-based travelers and visitors to Canada, offering an extensive selection of plans. These include all-inclusive plans for both domestic and international travel, emergency medical plans, trip cancellation options, and Visitor-to-Canada (VTC) plans.

Increasing Household Debts

The rising household debt is a major concern in Canada, prompting individuals to seek financial safeguards against the risk of loan defaults which is contributing to the growth of the market. As Canadians take on more mortgages, car loans, and personal loans, creditor insurance becomes an essential tool for managing financial risk. This insurance helps borrowers ensure that their debt obligations will be covered in the event of unforeseen circumstances like job loss, disability, or death, providing peace of mind and financial security. According to Canada Statistics, Canada has the highest household debt to disposable income ratio in the G7, at 185% compared with an average of 125% for all G7 countries. In 2023, the disposable income of young households rose by 2.5%, reflecting broad-based wage increases, while their average net saving rose by 9.2%. The household debt-to-income ratio of young households fell to 165.2% in the third quarter of 2023, about 10 percentage points below its level during the same quarter in 2022. Among those less than 35 years of age, the ratio of interest costs to disposable income rose 2.4 percentage points to 9.7% in 2023. Essentially, young households spent 10 cents of every dollar earned towards servicing their debt, up from around 7 cents in 2022.

Canada Creditor and Travel Insurance Market News:

• In January 2024, Securian Canada partnered with the Canadian Automobile Association (CAA) to introduce a range of new life, health, and dental insurance solutions. The partnership brings these new products plus a digital-first customer experience to CAA’s expansive membership base, totalling over seven million nationwide. They will gain access to insurance offerings at preferred prices through a user-friendly platform.
• In January 2024, Blue Cross, a renowned insurance provider trusted across Canada, and Blink Parametric, an innovative Ireland-based InsurTech company, announced an extension of their partnership for another three years. The reason behind this enduring partnership is the shared goal of providing stress-free travel experiences to Canadian travelers. With the increasing need for risk management during travel, as highlighted in the latest Blue Cross Travel Study, this collaboration aims to offer real-time solutions for flight disruptions.
   

Canada Creditor and Travel Insurance Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on type.

Type Insights:

• Creditor Insurance
  • Product Type
    • Life Insurance
    • Disability Insurance 
    • Job Loss Insurance
    • Critical Illness Insurance
  • Customer Type 
    • Individual Borrowers 
      • Personal Loans
      • Mortgages
      • Credit Card Balances
    • Small and Medium Enterprises 
      • Business Loans
      • Lines of Credit
  • Distribution Channels
    • Banks and Financial Institutions
    • Insurance Companies
    • Credit Unions 
    • Mortgage Brokers and Financial Advisors
    • Online Platforms 
• Travel Insurance
  • Product Type 
    • Trip Cancellation/Interruption Insurance
    • Emergency Medical Insurance
    • Baggage Insurance
    • Accidental Death and Dismemberment Insurance
    • Comprehensive Travel Insurance
  • Customer Type
    • Leisure Travelers
    • Business Travelers
    • Students
    • Senior Citizens
    • Adventure Travelers
  • Distribution Channels
    • Insurance Companies
    • Travel Agencies
    • Banks and Credit Card Companies
    • Online Platforms
       

The report has provided a detailed breakup and analysis of the market based on the type. This includes creditor insurance [product type (life insurance, disability insurance, job loss insurance, and critical illness insurance), customer type (individual borrowers {personal loans, mortgages, and credit card balance} and small and medium enterprises {business loans and lines of credit}), and distribution channels (banks and financial institutions, insurance companies, credit unions, mortgage brokers and financial advisors, and online platforms)] and travel insurance [product type (trip cancellation/interruption insurance, emergency medical insurance, baggage insurance, accidental death and dismemberment insurance, and comprehensive travel insurance), customer type (leisure travelers, business travelers, students, senior citizens, and adventure travelers), and distribution channels (insurance companies, travel agencies, banks and credit card companies, and online platforms)].

Regional Insights: 

• Ontario
• Quebec
• Alberta
• British Columbia
• Others
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Ontario, Quebec, Alberta, British Columbia, and Others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Canada Creditor and Travel Insurance Market Report Coverage:

Key Questions Answered in This Report:

• How has the Canada creditor and travel insurance market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Canada creditor and travel insurance market?
• What is the breakup of the Canada creditor and travel insurance market on the basis of type?
• What are the various stages in the value chain of the Canada creditor and travel insurance market? 
• What are the key driving factors and challenges in the Canada creditor and travel insurance?
• What is the structure of the Canada creditor and travel insurance market and who are the key players?
• What is the degree of competition in the Canada creditor and travel insurance market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Canada creditor and travel insurance market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Canada creditor and travel insurance market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Canada creditor and travel insurance industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.