TD Insurance study finds majority of Canadians would rather avoid
insurance decisions
TORONTO, May 6, 2014 /CNW/ - When it comes to thinking about insurance,
new research has found that there are a lot of unpleasant tasks
Canadians would rather do in place of researching coverage options. A
recent survey commissioned by TD Insurance found that 62 per cent of
respondents would prefer to shovel snow, spend a Saturday doing
laundry, go to the dentist, or even wait in an airport security line
rather than think or talk about insurance coverage.
The national survey also explored Canadians' ability to estimate risks
and the likelihood of certain events. The findings indicate that as a
group, Canadians generally underestimate risks. For example, the survey
found that 81 per cent of participants underestimated the likelihood of
a home break-in, which is about 1 in 200 according to Statistics
Canada. Furthermore, two thirds (67 per cent) of those surveyed
reported seeing themselves as more safety conscious than the rest of
the population, even though statistically this can't be the case.
"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. "We encourage
customers to talk to their insurance providers to better understand
their coverage. We strive to help customers weigh options against risks
and factor in the necessary considerations to choose coverage that best
reflects their needs."
The survey found that respondents were as likely to overestimate
potential risks as they were to underestimate them. Asked to predict
the chances of being injured, even slightly, in an auto accident in a
typical year, 36 per cent underestimated the likelihood but 30 per cent
overestimated. According to Transport Canada statistics the odds are
approximately 1 in 130.
"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 who advised TD on its research for this
initiative. "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."
The results also showed 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 per cent) said they were more safety
conscious than others, whereas only 62 per cent of women made the same
claim. And, at 53 per cent, men were also more likely than women to
believe they were healthier than others their age - only 44 per cent of
women identified themselves as having above average health.
Interestingly seniors over 65 years of age were the group most likely
to rate themselves healthier than others their age, with 65 per cent
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. For example creditor protection
insurance - on a mortgage, car loan or even a credit card - can help
ensure one doesn't default on a loan in the case of a life event that
makes it difficult to make payments."
About the TD Insurance State of Insurance Report
TD Insurance commissioned Research House (a member of the Environics
Group), to conduct an online survey of 1000 Canadians aged 18 and
older. Responses were collected from March 18 - 24, 2014. Analyses and
interpretation was provided by the Brondesbury Group.
About TD Insurance
TD Insurance offers a wide range of products to help protect customers
including credit protection, auto, home, health, life, and travel
insurance. With more than 4 million customers, TD Insurance authorized
products and services are available through a network of more than
1,150 TD Canada Trust branches, the Internet, and telephone. For more
information, visit www.tdinsurance.com.
SOURCE TD Insurance
