Aviva Canada, one of the country’s leading insurance companies, has recently announced changes to its underwriting rules in response to the Alberta government’s auto rate cap. This move comes as the province continues to grapple with rising auto insurance costs.
The Alberta government implemented a five percent cap on auto insurance rate increases in 2020, in an effort to provide relief to drivers who have been facing steep premium hikes. However, this cap has put pressure on insurance companies to find ways to manage their costs while still providing coverage to their customers.
In response to this challenge, Aviva Canada has tightened its underwriting rules, which determine the eligibility and pricing of insurance policies. These changes will affect both new and existing customers, and are expected to take effect in the coming months.
One of the key changes is the introduction of a new risk assessment tool, which will allow Aviva to better evaluate the risk profile of each individual driver. This tool will take into account factors such as driving history, vehicle type, and location, in order to determine the appropriate premium for each policy.
In addition, Aviva will also be implementing stricter guidelines for insuring high-risk drivers, such as those with multiple traffic violations or accidents on their record. These drivers may face higher premiums or even be denied coverage altogether.
While these changes may be seen as a necessary response to the auto rate cap, they have also raised concerns among brokers and consumer advocates. Some worry that these stricter underwriting rules may make it more difficult for certain drivers to obtain affordable insurance, particularly those in high-risk categories.
However, Aviva has stated that these changes are necessary in order to maintain a sustainable business model and continue providing coverage to its customers. The company also emphasizes that it remains committed to working with brokers to find solutions for their clients.
As the auto insurance landscape in Alberta continues to evolve, it is clear that both insurance companies and government regulators will need to work together to find a balance between affordability and sustainability. In the meantime, drivers in the province can expect to see changes in the way their insurance policies are priced and underwritten.
