A second insurance provider is planning on putting a halt to offering automobile insurance in the province.
Aviva Canada is intending on phasing out its auto insurance along with home policies starting in January, according to a media release.
“We had to make the difficult decision to exit as the current environment in Alberta doesn’t foster growth,” according to Susan Penwarden, Aviva Canada’s managing director for personal lines.
According to the insurance provider costs of claims have outweighed premiums paid “for many years” along with the added costs of litigations throughout the province which has resulted in higher premiums in Alberta according to the company.
Aviva Direct home and auto insurance is underwritten by S&Y Insurance.
Just three weeks ago, it was also announced that Sonnet insurance would stop all auto coverage in the province by mid-December. Home polices with Sonnet will not be affected.
According to Sonnet, “limited opportunities … to grow profitably in the current auto insurance operating environment in Alberta were a key consideration in making this decision.”
A province wide survey was issued and completed by 16,000 Alberta residents in June. The results are currently under review by the ministry of Finance.
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