Photo above Mikhail Nilov
By Varsha Vijayarajah
A new report released by Securian Canada, titled Newcomers’ Realitiessheds light on a pressing but often overlooked issue: financial stress is the leading well-being challenge faced by newcomers to Canada. While many newcomers arrive with strong educational backgrounds and quickly secure employment, financial insecurity remains a persistent challenge—often long after their initial settlement period.
The report is based on a survey of 1,589 newcomers and reveals that 54% cite financial stress as their greatest concern, surpassing other challenges such as work-life balance, mental health, and social isolation. What’s more, this stress doesn’t fade with time. Whether individuals have been in Canada for a few months or several years, the financial pressure remains a constant.
“This suggests the presence of systemic barriers rather than a lack of effort to adapt to Canadian financial systems,” says Nigel Branker, CEO of Securian Canada.
One of the core findings of the report points to a significant insurance gap among newcomers—a critical but often misunderstood aspect of financial stability. While 78% of newcomers acknowledge insurance as essential to securing their family’s future, one in five have no insurance coverage at all, and 60% are underinsured.
Despite this recognition, navigating the Canadian insurance landscape can be overwhelming. According to the report:
- 42% worry about being misled when buying insurance
- 33% say it’s difficult or too expensive to access professional advice
- 29% don’t know where to find reliable information
This lack of access and clarity has real consequences. Branker points out that financial stress is significantly higher—58%—among those who are underinsured, compared to 48% among those who have adequate coverage.
“Insurance can play a vital role in building a strong financial foundation,” Branker explains. “Without it, even minor setbacks can become major obstacles.”
The issue isn’t about awareness, he adds—it’s about accessibility and trust. Many newcomers rely on personal networks, such as family or friends in Canada, when seeking financial advice. While these informal sources offer familiarity and comfort, they may not always provide accurate or up-to-date information.
Branker argues that Canada’s financial institutions need to do more to meet the unique needs of immigrant communities. That includes offering simpler, more transparent options and removing barriers to access.
A promising solution lies in digital innovation. The report finds that:
- 53% of newcomers prefer to purchase insurance online
- 66% want digital tools that make insurance easier to manage
“The insurance industry needs to evolve to reflect the realities of Canada’s immigrant population,” Branker says. “We’re investing in digital tools that simplify the process and build trust with customers from all backgrounds.”
He notes that sectors like banking have already embraced intuitive, user-friendly platforms, resulting in much higher customer confidence. Insurance companies, he argues, must follow suit if they want to earn the trust of a rapidly growing, diverse population.
Canada, a country built on immigration, cannot afford to ignore the financial well-being of its newcomers. The Newcomers’ Realities report is a timely reminder that supporting immigrant success goes beyond employment. It’s about creating systems that allow newcomers to build security, protect their families, and thrive long-term.
“This isn’t just about convenience,” Branker emphasizes. “It’s about breaking down structural barriers that are keeping people from building the secure futures they came here for.”
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