How advisors can meet the demand for financial advice and insurance
Canada’s population growth slowed in the first three months of 2025, according to Statistics Canada data released this week. But there was still a net increase of 20,107 people and the number of newcomers was more than 104,000.
It’s that sizeable cohort of newcomers – and those who have been here for a few years already - that presents an opportunity for Canadian financial advisors and insurance agents to meet demand for financial advice for those that are fresh to the country’s wealth, investing, and insurance landscape.
A new report from Securian Canada highlights the financial challenges of newcomers to Canada, with most of those surveyed being highly educated (74% have university education or higher), employed (75%), and in the core age for work and saving for key financial milestones including retirement (nine in ten are younger than 55).
Wealth Professional has dug deeper into the report with Securian Canada’s CEO Nigel Branker, who says that chronic financial stress is often less about routine tasks like checking balances or managing short-term transactions, and more closely tied to long-term financial responsibilities that impact a person's overall financial wellbeing and security.
“Our survey found that confidence in these areas, namely day-to-day banking (82%) and international transfers (70%), is much higher than insurance (49%) or mortgages and loans (43%),” he explains. “This gap in confidence may point to a link between lower confidence and higher stress for long-term financial responsibilities. Understanding this distinction is crucial for developing financial tools and support systems that target the root causes of financial anxiety.”
The survey found that 54% of newcomers experience financial stress, so what can advisors do to help?
“One of the most effective ways of alleviating financial stress is to provide accessible, trusted information,” Branker suggests. “Our data shows that many newcomers are turning to digital sources of information for insurance, including 54% comparing quotes from insurers’ websites, 48% searching for policies online and 14% searching for recommendations on social media.”
Insurance is one of the key areas where newcomers may not have the understanding they need to confidently buy the right coverage for their needs. And while they typically understand the importance of life insurance and other policies, there is a trust issue that can be problematic with 42% of respondents expressing concern that they may be misled.
“Worrying about being misled is a valid concern – there are unfortunately bad actors and unreliable sources, so approaching decisions with cautious skepticism is wise,” Branker says. “To build trust, insurers should encourage clients to ask questions or seek second opinions. Our survey found that newcomers to Canada often seek advice from members of their personal networks, and more than half (53%) make financial decisions with another member of their household. Insurance providers who recognize the value of community support and decisions made within families will be best positioned to gain trust.”
When advisors and insurance agents are seeking to engage with newcomers, one area that is worth investigating is perceived complexity of online insurance platforms. With a requirement to provide verification and documentation that may seem intimidating, the guidance that a human advisor can provide is clear.
“Insurance providers can help by simplifying explanations, offering multilingual support, guiding clients through application steps and connecting them to resources that accommodate their specific needs,” says Branker. “Highlighting features like easy claims tracking, 24/7 support, and personalized digital recommendations can also improve engagement and reduce frustration with existing systems.”
Often, a hybrid approach that blends human advice with digital tools and platforms is the one that works best.
The report reveals that 20% of newcomers who took part in the poll, who may have been in Canada for up to five years already, have no insurance and 60% are underinsured.
Branker says this starts with limited access to employer-sponsored benefits, especially among those who participate in gig work (4% of newcomers), those who hold part-time work (19%), or those who are unemployed (11%).
“Additionally, some individuals may have misperceptions about affordability or require more information about insurance products,” he adds.
