Two insurance providers in Alberta have announced plans to stop offering automobile insurance to customers in Alberta.
Aviva Canada on Wednesday said it intends to phase out its home and auto insurance business through Aviva Direct, its direct-to-consumer business, in the province starting in January.
“We had to make the difficult decision to exit as the current environment in Alberta doesn’t foster growth,” Susan Penwarden, Aviva Canada’s managing director for personal lines, said in a statement.
Aviva Canada said costs of claims “for many years” have surpassed the premiums they’ve collected in the province, adding that the cost of litigation is the biggest factor in raising auto insurance premiums in Alberta.
Aviva Direct home and auto insurance is underwritten by S&Y Insurance.
The news comes almost three weeks after Sonnet Insurance said it would stop …