CAFII News

_{By CAFII, Kingsville Times}

Half of Canadian mortgage holders could only maintain their lifestyle for less than six months without their primary income, according to groundbreaking research from Pollara, commissioned by The Canadian Association of Financial Institutions in Insurance (CAFII).

The comprehensive Credit Protection Insurance (CPI) Segmentation Study surveyed more than 3,000 Canadians and reveals widespread financial stress alongside troubling gaps in protection confidence, even among those who already have insurance coverage.

The research, the first in Canada to map behavioural segments among current and potential CPI customers, found that 44% of mortgage holders report the current economic situation is negatively impacting their personal finances, while 57% have concerns about job loss in the next 12 months.

Perhaps most concerning: 50% say they would have serious problems paying bills if their main earner were unable to work.

Despite widespread insurance ownership, Canadians lack confidence in their existing safety nets. The study found that 35% don’t know how long their life insurance policy would last if needed, while only 38% feel confident they could pay their mortgage if the main earner lost income.

Even among those who believe they have sufficient life insurance (73%), experts note this confidence appears emotional rather than informed.

“This study shows a troubling contradiction: Canadians know they’re vulnerable, yet many remain underinsured or uncertain about the protection they do have. Only 38% feel confident they could cover their mortgage if the main earner lost income, and more than a third don’t even know how long their life insurance would last,” said Keith Martin, Executive Director, CAFII.

“With average household debt levels so high, these blind spots leave families exposed at the worst possible time. The challenge for our industry is not just providing insurance, but making sure Canadians understand and trust the protection available to them.”

The research identified five distinct consumer segments, with two groups standing out as having the greatest need for protection and support:

• The Confident Planner (26% of mortgage/Home Equity Line of Credit holders): Despite strong financial positions, this segment values CPI for asset protection, with 45% likely to purchase or renew coverage.
• The Anxious Realist (25% of mortgage/Home Equity Line of Credit holders): Struggling with affordability but standing to benefit most from protection, with 27% likely to purchase or renew despite financial constraints.

Together, these two segments represent 46% of the mortgage holders and point to clear gaps in confidence and coverage that leave many families financially vulnerable.

The study reveals that even among current CPI holders, concerns persist: only 30% agree the product provides good value for money, and just 29% find it affordable or trust it more than other insurance types. Among non-holders, 41% cite expense-related reasons for not having CPI, while 40% indicate lack of perceived need.

Communication gaps also make it harder for consumers to make informed decisions. Only 39% of non-holders recall being informed about CPI options, while 24-32% of non-holders don’t know enough to rate basic product attributes.

Although some mortgage and Home Equity Line of Credit holders have CPI (29% and 22% respectively), important gaps remain especially in job loss protection. Only 66% of mortgage-related CPI includes job loss coverage, compared to 94% for life coverage. The gap is particularly pronounced among those over 40, with only 48-54% having job loss protection compared to 79-95% of those under 40.

Most Canadians learn about Credit Protection Insurance from banks and credit unions (67%), and more than half of purchases (53%) take place there. However, the research found that 48% of non-holders were advised against CPI by financial professionals, highlighting that consumers may be receiving mixed messages and need better support in making informed choices.

Canadians are most likely to explore protection options when their finances feel stretched. Nearly half (44%) of respondents said they would consider CPI if bills became hard to manage, while others pointed to economic uncertainty, rising cost of living and major life events as moments when insurance feels most relevant.

“This research provides the CPI industry with a roadmap for better meeting the needs of financially vulnerable Canadians,” continued Martin. “The opportunity exists to close protection gaps, improve communication, and demonstrate value, particularly during life transitions and economic stress when families need protection most.”

https://kingsvilletimes.ca/2025/11/national-study-finds-mortgage-holders-face-rising-financial-vulnerability/

_{By Kate McCaffery, Insurance Portal}

New research conducted by Pollara and commissioned by the Canadian Association of Financial Institutions in Insurance (CAFII) makes a number of findings – about Canadians’ concerns about job loss, their insurance coverage and where they get their information – and notes that financial professionals are often advising Canadians against the use of credit protection insurance (CPI).

The July 2025 survey of more than 3,000 mortgage and home equity line of credit (HELOC) holders found that half could maintain their lifestyle for less than six months without their primary income. The Credit Protection Insurance (CPI) Segmentation Study “reveals widespread financial stress alongside troubling gaps in protection confidence, even among those who already have insurance coverage,” they write.

Notably, 57 per cent said they have concerns about job loss in the next 12 months. They say concern is highest among

younger adults, households with children under 18, immigrants coming to Canada within the last nine years and those in Quebec.

The research looks at the average mortgage held (over $200,000) and when mortgage holders expect to have this debt paid off.

Confidence may be more emotional than informed 
Regarding insurance uptake, they say few considered insurance to be unimportant, but only half said it was very important. “A majority had life insurance, often provided by employer benefits. While more feel they have enough insurance, this confidence may be more emotional than informed, as many can not say how long it would last,” they write.

The report also looks at personal financial concerns, how often survey respondents made payments into savings, debt, investments and time horizons and financial literacy. It additionally looks at advisor usage and at clients’ sources of information.

“Knowledge is highest when it comes to managing money and debt, but lower when it comes to planning, investing or insurance. That said, less than half feel very knowledgeable on any topic,” the report states.

30% held creditor protection insurance for mortgage 
About three in ten held CPI for their mortgage while roughly one in five held it for their HELOC. “Research found that 48 per cent of non-holders were advised against CPI by financial professionals, highlighting that consumers may be receiving mixed messages and need better support in making informed choices.” 

They also say the majority of survey respondents had life insurance but coverage varied by source: 47 per cent had it through employer benefits while 41 per cent said they had a personal policy. “Among those insured, term (24 per cent) and whole life (23 per cent) are most common, while one in four (25 per cent) are unsure what type of policy they hold,” they note.

https://insurance-portal.ca/article/consumers-may-be-receiving-mixed-messages-about-credit-protection-insurance

_{By Liezel Once, CMP}

Half of mortgage holders could not maintain their lifestyle for six months without their main income

A new national study has revealed that Canadian mortgage holders are facing growing financial vulnerability, with many lacking confidence in their insurance coverage despite widespread ownership.

The Pollara Credit Protection Insurance (CPI) Segmentation Study, commissioned by the Canadian Association of Financial Institutions in Insurance (CAFII), surveyed more than 3,000 Canadians in July and found that half of mortgage holders could only maintain their lifestyle for less than six months if their primary income disappeared.

The research, the first in Canada to map behavioural segments among current and potential CPI customers, painted a stark picture of household resilience.

Forty-four percent of mortgage holders reported that the current economic climate had negatively affected their personal finances, while 57% expressed concerns about job loss in the coming year.

“This study shows a troubling contradiction: Canadians know they’re vulnerable, yet many remain underinsured or uncertain about the protection they do have,” Keith Martin, executive director of CAFII, said.

“Only 38% feel confident they could cover their mortgage if the main earner lost income, and more than a third don’t even know how long their life insurance would last.”

Confidence crisis and coverage confusion
Despite 73% of respondents believing they have sufficient life insurance, only 38% felt confident they could pay their mortgage if the main earner lost income.

The study flagged that 35% of Canadians did not know how long their life insurance would last if needed—a gap that experts described as “emotional rather than informed” confidence.

Opportunity segments and persistent barriers
The study identified five consumer segments, with two groups—Confident Planners and Anxious Realists—standing out for their need for better protection.

While 45% of Confident Planners were likely to purchase or renew coverage, only 27% of Anxious Realists, who struggle with affordability, said the same.

Affordability and trust remain major barriers: just 30% of current CPI holders agreed the product provided good value, and only 29% found it affordable or trusted it more than other insurance types.

Among non-holders, 41% cited cost as a reason for not having CPI, and 40% pointed to a lack of perceived need.

Job loss protection and industry response
Coverage gaps were especially pronounced in job loss protection. Only 66% of mortgage-related CPI included job loss coverage, compared to 94% for life coverage.

The gap widened among those over 40, with only 48–54% having job loss protection, compared to 79–95% of those under 40.

Most Canadians learned about CPI from banks and credit unions, but the study found that nearly half of non-holders were advised against CPI by financial professionals, highlighting the need for clearer communication.

Martin said, “The opportunity exists to close protection gaps, improve communication, and demonstrate value, particularly during life transitions and economic stress when families need protection most.”

https://www.mpamag.com/ca/mortgage-industry/industry-trends/canadian-mortgage-holders-face-rising-financial-stress/557036

_{By Steve Randall, Wealth Professional}

New study shows nearly half of mortgage-holders could last less than six months without income

Many Canadians are risking their most valuable asset by being underinsured, leaving them vulnerable if they were to lose their income.

A newly released survey reveals a worrying financial picture for many homeowners with mortgages or HELOCs who, even with insurance coverage, remain financially exposed. Half of these households believe they could not maintain their lifestyle for more than six months if their main income source disappeared.

The study, commissioned by the Canadian Association of Financial Institutions in Insurance (CAFII) and conducted by Pollara, also found that 44% of respondents say the current economic climate is hurting their finances, while 57% worry about job loss in the coming year.

Although insurance is widespread, many homeowners are unsure of how well they’re actually protected. Only 38% feel confident they could keep paying their mortgage if the primary earner lost income, and just 35% know how long their life-insurance coverage would last.

“With average household debt levels so high, these blind spots leave families exposed at the worst possible time,” says CAFII’s executive director Keith Martin. “The challenge for our industry is not just providing insurance, but making sure Canadians understand and trust the protection available to them.”

The study grouped borrowers into five categories, with two standing out: the “Confident Planner,” representing 26% of respondents and showing strong financial footing and a higher likelihood of purchasing coverage, and the “Anxious Realist,” at 25%, feeling pressured financially but still seeing the need for protection. Together they account for almost half the participants and reflect substantial gaps in preparedness.

Although 29% of mortgage holders and 22% of HELOC borrowers have credit-protection or similar insurance, many question whether it is worthwhile. Only 30% of those with coverage believe the product offers good value, and fewer than one third consider it affordable or more trustworthy than other insurance. Among those without coverage, 41% cite cost as a barrier, while 40% say they don’t see its relevance.

Consumer awareness is also limited. Just 39% of mortgage or HELOC holders without CPI recall being informed about it, and about a quarter to a third say they received too little information to even judge key product features.

https://www.wealthprofessional.ca/investments/alternative-investments/hidden-financial-crisis-insured-canadian-homeowners-found-alarmingly-vulnerable/390865

FOR IMMEDIATE RELEASE

TORONTO, ON [November 18, 2025] — Half of Canadian mortgage holders could only  maintain their lifestyle for less than six months without their primary income, according to  groundbreaking research from Pollara, commissioned by The Canadian Association of Financial  Institutions in Insurance (CAFII), released today. The comprehensive Credit Protection  Insurance (CPI) Segmentation Study surveyed more than 3,000 Canadians and reveals  widespread financial stress alongside troubling gaps in protection confidence, even among  those who already have insurance coverage. 

The research, the first in Canada to map behavioural segments among current and potential  CPI customers, found that 44% of mortgage holders report the current economic situation is  negatively impacting their personal finances, while 57% have concerns about job loss in the  next 12 months. Perhaps most concerning: 50% say they would have serious problems paying  

bills if their main earner were unable to work. 

The Confidence Crisis 

Despite widespread insurance ownership, Canadians lack confidence in their existing safety  nets. The study found that 35% don’t know how long their life insurance policy would last if  needed, while only 38% feel confident they could pay their mortgage if the main earner lost  income. Even among those who believe they have sufficient life insurance (73%), experts note  this confidence appears emotional rather than informed. 

“This study shows a troubling contradiction: Canadians know they’re vulnerable, yet many  remain underinsured or uncertain about the protection they do have. Only 38% feel confident  they could cover their mortgage if the main earner lost income, and more than a third don’t even  know how long their life insurance would last,” said Keith Martin, Executive Director, CAFII. 

“With average household debt levels so high, these blind spots leave families exposed at the  worst possible time. The challenge for our industry is not just providing insurance, but making  sure Canadians understand and trust the protection available to them.” 

Two Key Opportunity Segments Identified 

The research identified five distinct consumer segments, with two groups standing out as having  the greatest need for protection and support:  

● The Confident Planner (26% of mortgage/HELOC holders): Despite strong financial  positions, this segment values CPI for asset protection, with 45% likely to purchase or  renew coverage. 

● The Anxious Realist (25% of mortgage/HELOC holders): Struggling with affordability but  standing to benefit most from protection, with 27% likely to purchase or renew despite  financial constraints. 

Together, these two segments represent 46% of the mortgage holders and point to clear gaps in  confidence and coverage that leave many families financially vulnerable.  

Affordability and Trust Remain Barriers 

The study reveals that even among current CPI holders, concerns persist only 30% agree the  product provides good value for money, and just 29% find it affordable or trust it more than other  insurance types. Among non-holders, 41% cite expense-related reasons for not having CPI,  while 40% indicate lack of perceived need. 

Communication gaps also make it harder for consumers to make informed decisions. Only 39%  of non-holders recall being informed about CPI options, while 24-32% of non-holders don’t know  enough to rate basic product attributes. 

Coverage Gaps in Job Loss Protection 

Although some mortgage and HELOC holders have CPI (29% and 22% respectively), important  gaps remain especially in job loss protection. Only 66% of mortgage-related CPI includes job  loss coverage, compared to 94% for life coverage. The gap is particularly pronounced among  those over 40, with only 48-54% having job loss protection compared to 79-95% of those under  40. 

Financial Institutions Hold the Key 

Most Canadians learn about Credit Protection Insurance from banks and credit unions (67%),  and more than half of purchases (53%) take place there. However, the research found that 48%  of non-holders were advised against CPI by financial professionals, highlighting that consumers  may be receiving mixed messages and need better support in making informed choices. 

Focus on decision-making 

Canadians are most likely to explore protection options when their finances feel stretched.  Nearly half (44%) of respondents said they would consider CPI if bills became hard to manage,  while others pointed to economic uncertainty, rising cost of living and major life events as  moments when insurance feels most relevant.  

“This research provides the CPI industry with a roadmap for better meeting the needs of  financially vulnerable Canadians,” continued Martin. “The opportunity exists to close protection 

gaps, improve communication, and demonstrate value, particularly during life transitions and  economic stress when families need protection most.” 

About the Study 

The Pollara CPI Segmentation Study was conducted in July 2025 with a representative sample  of more than 3,000 Canadian mortgage and HELOC holders. The research identified five  distinct consumer segments and analyzed their financial vulnerability, protection needs,  purchase behaviors, and attitudes toward Credit Protection Insurance. 

### 

About CAFII 

The Canadian Association of Financial Institutions in Insurance is a not-for-profit industry  association dedicated to the development of an open and flexible insurance marketplace. CAFII  believes that consumers are best served when they have meaningful choice in the purchase of  insurance products and services. CAFII’s 14 members include the insurance arms of Canada’s  major financial institutions–BMO Insurance, CIBC Insurance, Desjardins Insurance, National  Bank Insurance, RBC Insurance, Scotia Insurance, and TD Insurance, along with major industry  players Assurant Canada, The Canada Life Assurance Company, Canadian Tire Bank, Chubb  Life Insurance Company of Canada, CUMIS Services Incorporated, Manulife (The  Manufacturers Life Insurance Company), and Securian Canada. 

For further information and media requests: 

Contact: Wendy Bairos, Media Consultant  

Email: wendy.bairos@cafii.com 

Phone: 416-831-9820

_{By Kate McCaffery, Insurance Portal}

Anew report focused on the credit protection insurance (CPI) industry has found that 70 per cent of a global sampling of CPI insurers say legacy systems are the biggest hurdle to modernizing digital experiences and artificial intelligence (AI) driven underwriting.

Entitled Exploring Emerging Technology & Gen AI Trends in CPI, the report is a culmination of research by Deloitte, commissioned by the Canadian Association of Financial Institutions in Insurance (CAFII).

https://insurance-portal.ca/article/opportunities-for-modernization-exist-in-credit-protection-insurance