Aviva Canada is the largest provider of property and casualty insurance in Canada, and a subsidiary of Aviva plc, the largest insurance company in the UK. Aviva Canada offers a variety of products and services to individuals and businesses, such as auto, home, business, farm, and travel insurance, as well as investment and retirement solutions. In this article, we will review the pros and cons of Aviva Canada insurance, as well as its pricing and customer ratings.
Pros of Aviva Canada Insurance
- Strong market position and diversification: Aviva Canada is the market leader in Canada, with a 17% share of the property and casualty insurance market. Aviva Canada also has a presence in the U.S. and Europe, through its acquisition of RSA Insurance Group in 2021. Aviva Canada offers a diversified portfolio of products and services, catering to various segments and niches of the insurance market.
- Superior financial performance and strength: Aviva Canada has consistently delivered strong financial results, with a 10-year average return on equity of 14.6%. Aviva Canada has also maintained a strong capital position, with a solvency ratio of 204% as of September 30, 2021. Aviva Canada has an A+ rating from A.M. Best, which indicates its superior ability to pay out claims and meet its financial obligations.
- Customer-centric approach and innovation: Aviva Canada is committed to providing excellent customer service and satisfaction, with a net promoter score of 65% in 2020. Aviva Canada also invests in innovation and digital transformation, to enhance its customer experience and operational efficiency. Aviva Canada has launched several initiatives, such as Aviva Lab, Aviva Ventures, and Aviva Public Entities, to foster innovation and collaboration within and outside the organization.
Cons of Aviva Canada Insurance
- Competitive and regulatory pressures: Aviva Canada faces intense competition from other insurance companies, both in Canada and abroad, which may affect its market share and profitability. Aviva Canada also operates in a highly regulated environment, which may impose constraints on its pricing, product development, and distribution strategies. Aviva Canada may also be subject to legal and regulatory risks, such as litigation, fines, or sanctions, arising from its business activities.
- Exposure to natural catastrophes and climate change: Aviva Canada is exposed to the risk of natural catastrophes, such as earthquakes, floods, wildfires, and storms, which may cause significant losses and claims. Aviva Canada may also be affected by the impact of climate change, which may increase the frequency and severity of weather-related events, as well as create new risks and opportunities for the insurance industry. Aviva Canada may need to adapt its risk management, underwriting, and pricing practices to cope with these challenges.
- Integration and execution risks: Aviva Canada has completed several acquisitions in the past, such as AXA Canada, OneBeacon, and RSA, which have expanded its scale and scope of operations. However, these acquisitions also entail integration and execution risks, such as cultural differences, operational disruptions, synergies realization, and goodwill impairment. Aviva Canada may also face difficulties in retaining and attracting customers and employees, as well as maintaining its brand reputation and identity, following these acquisitions.
Pricing of Aviva Canada Insurance
The pricing of Aviva Canada insurance depends on several factors, such as the type and amount of coverage you choose, your personal and financial information, your driving and claims history, and your location. The best way to get an accurate quote for Aviva Canada insurance is to contact an Aviva Canada agent or broker, or visit its website. You can also compare quotes from different insurance companies using online tools like Kanetix or LowestRates.
Here are some examples of Aviva Canada’s average annual premiums for different types of insurance, based on data from Kanetix and LowestRates:
- Auto insurance: Full coverage for a 40-year-old driver with a clean record and a 2024 Honda Accord costs $1,789 per year.
- Home insurance: $300,000 of dwelling coverage and $300,000 of liability coverage for a 2,500-square-foot home built in 2024 costs $1,256 per year.
- Travel insurance: A single-trip medical insurance for a 40-year-old traveler going to the U.S. for 10 days costs $35.
- Business insurance: A general liability insurance for a small retail business with $500,000 in annual revenue and 10 employees costs $1,500 per year.
Customer Ratings of Aviva Canada Insurance
Aviva Canada has mixed customer ratings from various sources, such as J.D. Power, Trustpilot, Better Business Bureau, and NAIC. Here are some of the ratings Aviva Canada received from these sources:
- J.D. Power 2024 Canadian Auto Insurance Satisfaction Study: 3/5
- J.D. Power 2024 Canadian Home Insurance Satisfaction Study: 3/5
- Trustpilot: 1.5/5
- Better Business Bureau Customer Reviews: 1.09/5
- NAIC Complaint Index: 0.000 (below average)
Conclusion
Aviva Canada is a reputable and financially strong insurance company that offers a wide range of products and services to individuals and businesses. Aviva Canada has some advantages, such as strong market position and diversification, superior financial performance and strength, and customer-centric approach and innovation. However, Aviva Canada also has some drawbacks, such as competitive and regulatory pressures, exposure to natural catastrophes and climate change, and integration and execution risks. Therefore, before you buy Aviva Canada insurance, you should compare quotes and reviews from other insurance companies to find the best option for you.
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