ITIC Americas 2025 | Canadian snowbirds – insurance sales and medical assistance requirements
What are the pain points for snowbirds buying travel cover, and can the industry remedy these problems to enhance the customer experience? Stephen Fine and Dr Ferial Ladak addressed these issues, as well as considering how medical claims costs can be managed effectively
The ITIJ team have been reporting live from ITIC Americas in Miami this week (March 2025) sharing the discussions that took place at the conference. Read all reports
Stephen Fine, President and Co-Founder, Snowbird Advisor Insurance
Fine began his presentation by defining a snowbird as typically someone aged 55 plus, retired or semi-retired, who migrates from cold weather climates (Canada and the northern US) to warm weather climates for one to six months per year between October and April. He estimated that there were over one million Canadian snowbirds.
When comparing the needs of US snowbirds with those of Canadian snowbirds, he noted that US snowbirds often have private health insurance that covers their medical needs both in the US and internationally. This reduces their need for additional travel insurance. In contrast, Canadian snowbirds depend on a universal healthcare system that provides minimal coverage outside of Canada, making it essential for them to purchase supplementary travel medical insurance.
Fine discussed the unique needs of Canadian snowbirds, including factors such as age, pre-existing medical conditions, and the duration of extended trips. He noted that Canadian snowbirds typically obtain their insurance through various sources and that the preferred method of purchasing insurance was by phone rather than online due to the complexity of the coverage requirements.
He explained that disclosing medical conditions is more complex for snowbirds, who are typically older. If not done correctly, this can lead to a higher risk for both clients and insurers. Additionally, he emphasised the importance of snowbird clients understanding ongoing disclosure and stability requirements to prevent future claims issues.
Fine predicted that possible snowbird trends could include more travel outside the US and shorter trips. He summarised that some benefits of the Canadian snowbird market include higher premiums, strong repeat business, greater market penetration, and a well-defined target audience. The challenges include complex coverage needs, higher sales and service costs, increased claims due to age and trip duration, and the necessity for a careful pricing strategy to balance competitiveness and profitability.
Dr Ferial Ladak, Global Medical Director, Global Excel Management
Dr Ladak opened her presentation by discussing the challenges of the snowbird market, highlighting the contrast between expectations of an enjoyable experience and the reality of potential injuries or serious medical conditions.
She also reflected on the unique characteristics of snowbirds, highlighting their older age demographic, complex medical histories, extended trips, and relocation to high-cost healthcare systems.
Dr Ladak then discussed current issues and updates for policyholders, focusing on the impact of the weakening Canadian dollar. She explained that higher claim costs affect insurers’ profitability, likely leading to increased rates for snowbirds. Additionally, the declining exchange rate raises out-of-pocket expenses for medical care and daily living in the US, potentially prompting snowbirds to consider alternative destinations.
Next, Dr Ladak reflected on the lasting health impacts of the Covid-19 pandemic, highlighting increased cardiac issues and cancers. She emphasised that many untreated conditions from the pandemic are now surfacing, posing ongoing risks for insurers and underwriters.
She also raised concerns about overzealous treatment and the overselling of care, alongside the challenges of medical evacuations and Canada’s hospital bed shortages. She stressed the urgent need for more rehabilitation beds, not just acute care beds, to better support patient recovery.
For snowbirds, she outlined the Travel Health Insurance Association’s (THIA) “four golden rules” for selecting travel insurance, emphasising their importance in ensuring proper coverage:
- Know your health
- Know your trip
- Know your policy
- Make the insurer aware of everything
To conclude, she proposed solutions to the challenges of snowbird travel, including pre-travel coaching on technology and hospital systems to help travellers prepare in advance. She also advocated for policy changes to ease Canadian snowbirds’ return to rehab or nursing homes. Additionally, she emphasised the need to secure hospital beds more efficiently by streamlining patient returns and reducing hospital stay durations.