The move adds to a growing list of insurers scaling back or exiting Alberta
CUMIS General Insurance Company will leave Alberta’s home and auto insurance market on January 1, 2026. The company pointed to ongoing problems in Alberta’s insurance sector as a reason behind its move, following other insurers pulling back or leaving the province due to tough regulations and rising claims costs.
The company has notified the Alberta Superintendent of Insurance of their its to withdraw, with customers to continue to receive coverage until their policy expiry in 2026. Renewals are available through the end of 2025, subject to existing terms and underwriting guidelines.
"There are no changes to other CUMIS branded products or services offered in Alberta. This decision does not affect the CUMIS General Home & Auto program in other provinces," the company said.
Insurers retreat as Alberta market tightens
CUMIS’s exit is the latest in a series of insurer withdrawals from Alberta. In June 2024, Definity-owned Sonnet Insurance Company announced it would phase out its auto insurance operations in the province by December 2024.
Aviva Canada also revealed plans to wind down its direct-to-consumer home and auto business (Aviva Direct) from Alberta by January 2025. Both cited regulatory caps on rate increases and the mounting cost of claims—particularly those driven by natural disasters—as key factors.
While these exits are significant, they remain concentrated in Alberta, where regulatory and climate-related pressures are most acute.
Market remains competitive, but under strain
Despite these high-profile departures, several major Canadian property and casualty insurers, including Intact, Fairfax, Trisura, and Definity, remained profitable in 2025, though they face ongoing headwinds from natural catastrophes and regulatory constraints.
CUMIS’s decision, while impactful for credit unions and their members who relied on bundled home and auto products, is not expected to trigger a Canada-wide retreat from the home insurance market. However, the Alberta experience underscores the sector’s vulnerability to regulatory and climate-driven pressures.
Meanwhile, Alberta’s economy, driven by oil and global trade, was expected to outpace other provinces over the next two years. ATB Financial forecasted real GDP growth of 1.9% in 2025 and 2.1% in 2026, despite trade tensions and a slowing job market.
