Edmonton, Alberta — Sonnet Insurance Company will phase out auto insurance operations by Dec. 13, 2024, the company announced last Friday.
The company cited December 13 as its intended date of withdrawal from the Alberta market. Following that date, Sonnet will no longer issue new policies, nor will it renew any new auto insurance policies in the province.
In a press release, Sonnet said “limited opportunities for [the company] to grow profitably in the current auto insurance operating environment in Alberta were a key consideration in making this decision.”
The company added that the decision was made following a “thorough review” of prospects in the Alberta market.
The Definity-owned brand will notify Alberta auto insurance customers impacted by the withdrawal. Other Canadian markets where Sonnet operates will not be affected.
Sonnet will continue to operate its home insurance business in Alberta.
Click here for more information on Sonnet’s plans to withdraw auto insurance from Alberta.
The announcement came alongside considerable calls for auto insurance reform in Alberta. Less than two weeks ago, Alberta Premier Danielle Smith said there was “no appetite” for a government-run auto insurance system.
“There are lots of Albertans who are prepared to pay the extra dollars so that, if they do—heaven forbid—end up in a terrible accident, they can hold someone accountable through the legal process.”
A report from Oliver Wyman and Nous Group, commissioned by the Alberta Treasury and Finance Board, previously found that switching to a no-fault system could save Albertans around $730 per year, potentially accounting for an estimated $2.1 billion in consumer savings across the province.
A government survey runs until June 26, seeking consumer feedback on the issue.
