There will be two fewer choices in the auto insurance market for Albertans. Aviva Direct and Sonnet have announced that they will both no longer be writing auto insurance policies for Alberta residents.
Aviva Direct will end auto and home insurance services in Alberta from January 2025. Existing policies will be unaffected before their expiry date. Policies expiring after January 2025 will have to be rewritten with another insurance company.
“After careful review of our direct-to-consumer business, we had to make the difficult decision to exit as the current environment in Alberta doesn’t foster growth,” said Susan Penwarden, Managing Director, Personal Lines, Aviva Canada.
According to an Aviva release, claims costs have exceeded premiums collected in Alberta for many years. In particular, litigation costs are the biggest factor driving up auto insurance premiums for Albertans.
Sonnet will stop writing auto insurance policies for Alberta residents effective December 13, 2024. While existing customers will not be impacted immediately by this decision, Sonnet says that it will not issue new or renewal policies in Alberta after that date.
Limited opportunities for Sonnet to grow profitably in the current auto insurance operating environment in Alberta were a key consideration in making this decision, said Sonnet in a news release.
