Canada warmly welcomes millions of tourists every year. A recent anonymous survey commissioned by Toronto-based multinational insurance firm, Manulife, found that 33% of Canadians may host friends and family members from abroad this year. But among those welcoming hosts, only one-third were aware that they could purchase travel insurance for their visitors.
There’s a slight misconception among visitors that Canada’s public healthcare system is available and affordable for all. Yes, it is a strong healthcare system, but no, visitors can’t break a leg and spend a night in hospital for free.
According to Manulife’s survey, 16% of Canadians are not aware that friends and family members visiting Canada may be required to pay out-of-pocket if they require hospitalization during their stay. Furthermore, almost everyone surveyed dramatically underestimated the cost of a hospital room stay, which, for a non-resident, can cost around $3,000 per day in provinces like Ontario.
“Many of us have visitors to Canada, particularly in the summer months, and there are lots of things to think about for their stay,” said Wally Thompson, vice president, head of distribution, affinity markets at Manulife. “One thing that’s often overlooked is health insurance. There’s an assumption that visitors to Canada don’t need to pau if they have to see a doctor or have any medical conditions during their stay.
“Provincial healthcare is great for people that live in Canada, but people that are coming to Canada to visit are not covered. This is where ‘visitors to Canada’ insurance comes into play. It mainly covers emergency situations like hospitalization, but it can also extend to emergency transportation [for medical purposes] and recuperation measures like therapy, chiropractor and massage. It’s a very useful product and we’ve seen it grow in popularity.”
Despite visitors to Canada insurance playing a vital purpose, education and awareness around the product remains quite low. There are huge opportunities for insurance brokers and the wider financial advisory community to encourage Canadians to at least enquire about ‘visitors to Canada’ insurance and check if they need it for their visitors. In an ideal world, all visitors to Canada will have purchased their own travel health insurance prior to their trip, but even then, visitors to Canada insurance could provide a top-up or a wrap-around coverage which could prove very beneficial, explained Thompson.
In addition to the educational aspect, visitors to Canada insurance can provide insurance brokers with a new pipeline of business that isn’t too difficult to access, according to Karen Costain, director of business development for Allianz Global Assistance Canada’s national broker channel. She told Insurance Business that Allianz encouraged all its broker partners to look inside and outside their existing client base for leads, adding: “Nothing is better than asking every client that sits in front of you if they’re having anyone visit them this year and to let them know that they should be getting visitors to Canada insurance before they travel.”
The good news is, visitors to Canada insurance is a growing market segment. Helped along by Canada’s immigration policies and super visa program, alongside its international visibility as a top tourist destination, and the product is growing by about 25% year over year.
“There’s a direct correlation between tourism and the take-up rate of this product,” Thompson added. “The two really go hand in glove. It’s a very important market that is still relatively untapped, which means there are lots of opportunities there.”
