CUMIS General Insurance Company has announced it will withdraw from Alberta’s home and auto insurance market, effective January 1, 2026. The decision is attributed to ongoing challenges in Alberta’s auto insurance sector, particularly the rising cost of claims, the company said in a statement.
“Our Alberta home and auto policies will remain active until their expiry in 2026,” CUMIS confirmed. “Policyholders will receive ample notice to make informed decisions about securing new coverage. Claims service and decisions will continue uninterrupted, and all claims under existing policies will be processed according to policy terms until settled.”
The withdrawal affects both auto and home insurance, as CUMIS bundles the two products together under its Home & Auto program, designed for credit unions and their members to provide convenience and savings. The company emphasized that its operations in other provinces remain unaffected.
CUMIS holds a 0.27% market share for private passenger vehicles in Alberta, according to 2025 filings approved by the Automobile Insurance Rate Board (AIRB).
Context: Challenges in Alberta’s Insurance Market
Alberta’s government has acknowledged the growing pressures on insurers, citing catastrophic events, high vehicle replacement costs due to tariffs, and inflation. A government spokesperson emphasized ongoing efforts to maintain a competitive and stable insurance market, pointing to the upcoming Care First auto insurance reform, set for January 1, 2027. This reform aims to reduce lengthy court disputes, improve benefit dispute resolution through a tribunal system, and provide premium stability for Albertans.
Insurance experts warn that CUMIS’ exit is part of a broader trend. Aaron Sutherland, Vice President of the Insurance Bureau of Canada’s Pacific and Western division, noted, “Several insurers have already left Alberta since the rate cap was implemented nearly three years ago. This limits consumer choice and may force drivers to seek more expensive coverage elsewhere.”
Previous exits include:
Sonnet Insurance Company (Definity-owned) – phased out auto operations by December 2024.
Aviva Canada – phased out Aviva Direct from Alberta by January 2025.
Zenith Insurance – ended its relationship with an Alberta brokerage selling auto insurance in 2023.
Currently, Alberta’s good driver rate cap is set at 7.5%, which includes a 5% base cap and a 2.5% surcharge in 2025 due to natural disaster claims. The cap has challenged insurer profitability, with Alberta auto insurers reporting a -20% weighted average return on premium in 2024, according to AIRB.
CUMIS’ withdrawal underscores the financial strain on insurers operating under these regulatory conditions and highlights the urgency for market reforms ahead of the Care First system implementation in 2027.
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