Aviva makes "difficult decision to exit" Alberta
Aviva makes “difficult decision to exit” Alberta | Insurance Business Canada
Insurance News
Aviva makes “difficult decision to exit” Alberta
The current environment “doesn’t foster growth”
Insurance News
By
Terry Gangcuangco
Aviva Canada has announced that its direct-to-consumer business, Aviva Direct, will cease offering home and auto insurance in Alberta due to the province’s growth-limiting environment.
Customers will be notified via mail about the change, which will involve a phaseout from early January next year. Underwritten by S&Y Insurance Company, Aviva Direct home and auto products in Alberta are distributed by Aviva Agency Services Inc.
It’s unclear how many policyholders will be impacted by the Aviva Direct exit from Alberta.
“Customers have the option of getting insurance coverage through brokers or other direct channels.”
It was noted that, for years, Aviva’s claims costs in the province had outstripped the premiums collected. Litigation costs, particularly, have significantly increased auto insurance premiums for residents.
Penwarden added: “We want to continue to offer Albertans choice and affordable auto insurance. But auto insurance in Alberta has not been profitable for many years. We acknowledge that the Albertan government has launched a consultation on auto insurance reforms, and we are committed to working with the government to find solutions for Albertans and insurers.”
Despite the change, the majority of Aviva Canada’s insurance products will still be available in Alberta through brokers and partners.
UK-headquartered insurer Aviva employs more than 4,000 people and provides home, automobile, lifestyle, and business insurance to 2.4 million customers in Canada.
Earlier this year, Aviva Canada reported an operating profit of $670 million for 2023.
“In 2024, we’ll be relentless in our focus on executing our strategy, maintaining underwriting discipline, and improving customer, broker, and partnership experiences through targeted investment,” Aviva Canada chief executive Tracy Garrad said in March.
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