Aviva to discontinue its Aviva Direct program in Alberta

Aviva Canada announced its intention to discontinue its direct-to-consumer home and auto business Aviva Direct in Alberta from early January 2025.

The insurer said in a statement that claims costs have exceeded premiums collected in Alberta for “many years,” while adding that litigation costs are the biggest factor driving up auto insurance premiums for Albertans.

The vast majority of Aviva Canada insurance coverage remains in place in Alberta through brokers and partners.

Last month, Online Canadian insurer Sonnet Insurance announced that it will phase out its auto insurance operations in Alberta.

“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. Customers have the option of getting insurance coverage through brokers or other direct channels. 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.” – Susan Penwarden, Managing Director, Personal Lines, Aviva Canada.