CUMIS General Insurance Co., a subsidiary of Co-operators Group, will withdraw from Alberta's home and auto insurance market starting in 2026, citing ongoing difficulties in the province's auto sector. The company said rising claims costs have made the business unsustainable.
The company’s home insurance program in Alberta is bundled with auto coverage offered to credit union members, which means both lines will be withdrawn. Policies will continue to be renewed through the end of this year, and the insurer has notified the Alberta Superintendent of Insurance of its planned exit.
Meanwhile, other CUMIS products in Alberta remain unchanged, and the company said it will continue to provide home and auto coverage in other provinces.
According to a report from BestWire, Alberta’s auto insurance system has become one of the most challenging in Canada. A government-imposed rate cap, now in its third year, has squeezed carriers’ ability to price risk accurately. According to the Insurance Bureau of Canada (IBC), auto insurers in Alberta are losing $1.17 in claims and expenses for every dollar of earned premium. Several carriers have already scaled back or exited.
The province recently passed legislation to implement its first private, no-fault auto system by January 2027. While insurers see potential for long-term stability, IBC has warned that reform must go further by removing the rate cap and tackling legal costs.
Comparatively, Ontario has long faced its own affordability pressures, with average premiums among the highest in the country, but a greater pool of participating insurers has kept the market from widespread withdrawals. In British Columbia, drivers remain within a public auto insurance system dominated by ICBC, where reforms have cut litigation costs but also limited private competition. Against this backdrop, Alberta stands out as a market where regulatory intervention, combined with catastrophic weather losses, has accelerated the retreat of private carriers.
Recent storms have also deepened the strain. A severe hailstorm in Calgary in July generated nearly C$92 million in insured losses, lifting the province’s five-year hail damage total to C$6 billion. About two-thirds of those losses have fallen on auto insurers, further pressuring profitability.
CUMIS’ exit highlighted the fragility of Alberta’s auto insurance system, adding to a growing list of carriers retreating from the province. For policymakers, the challenge will be ensuring reforms not only stabilize costs for drivers but also restore insurer confidence in returning to the market.
