Edmonton, Alberta — Aviva Canada has announced its intention to phase out its Aviva Direct home and auto business insurance program in Alberta in early January 2025, citing lack of profitability as the reason for the discontinuation.
Aviva direct customers in the province will receive letters in the mail to inform them of the change.
According to the Financial Post, “for Aviva, 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.”
Susan Penwarden, managing director of personal lines fo Aviva Canada said that “after careful review of [Aviva’s] direct-to-consumer business, we had to make the difficult decision to exit as the current environment in Alberta doesn’t foster growth.”
Customers have the option of getting insurance coverage through brokers or other direct channels
Penwarden further commented that “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 work with the government to find solutions for Albertans and insurers.”
The post Adiós Aviva: Aviva to discontinue its Aviva Direct insurance program in Alberta by January 2025 due to lack of profitability appeared first on Collision Repair Magazine.
