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  5. MFC: The current "supply and confidence" arrangement between the federal Liberal and NDP parties has resulted in the announcement of the intention to establish a national dental plan, for which there ar... [Manulife Financial Corporation]
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Q: The current "supply and confidence" arrangement between the federal Liberal and NDP parties has resulted in the announcement of the intention to establish a national dental plan, for which there are very few specifics, save the $90,000 family income threshold, that this plan is for "Candians lacking dental coverage" (as per CBC report) and that coverage will be provided to Canadians under twelve years of age in this year, to Canadians under eighteen in 2023, with full implementation in 2025.

While it would be an impossible task to truly account for the potential impact to existing dental insurance providers, given the lack of any concrete information regarding levels of funding and range of services to be covered within this policy, could you offer any commentary (significant hedging of opinion is to be expected) on the potential near-term impact to the major players in the Canadian insurance space? Any insights you deem appropriate to share would be most appreciated. As always, I appreciate your candour and I look forward to your response.

Asked by Domenic on April 06, 2022
5i Research Answer:

Like everyone else, we don't have the right information needed here. It may not be so material to these companies, however. The question becomes 'how many Canadians were not getting any treatment due to lack of funds?'. This number is likely much smaller than those that simply tried to find the funds from elsewhere and continue treatment. It certainly is a positive development for the insurers and Canadians, but when divided by multiple parties, and looking at annual revenue of, say, SLF at $40 billion, it may not move the needle significantly.