Economical Insurance

What Economical Insurance does

Economical Insurance is a Canadian property and casualty insurance carrier founded in 1871 and headquartered in Waterloo, Ontario, operating as a wholly-owned subsidiary of the publicly traded Definity Financial Corporation. The company serves more than one million customers across Canada, distributing exclusively through a national network of independent insurance brokers rather than through direct-to-consumer sales. Its product portfolio spans personal lines (car, home, condo, tenant, landlord, and cottage insurance), business insurance (commercial property, commercial vehicle, and liability), and a broad set of specialty lines including ocean marine, technology, oil & gas, alternative energy, farm, financial lines, surety bonds, and cross-border solutions in 150+ countries. Two wholly-owned subsidiaries, Perth Insurance and Waterloo Insurance (branded as Economical Select), support non-standard auto and group insurance offerings, respectively. The company holds an AM Best A (Excellent) financial strength rating affirmed in January 2025.

The underlying operating platform combines traditional P&C underwriting with a proprietary broker enablement tool, Vyne, launched in 2018 to support broker growth and operational efficiency. Claims are handled by a specialized team of more than 600 professionals available 24 hours a day, supported by the Definity Repair Partners network of approved contractors offering service guarantees (lifetime guarantee on vehicle body, parts, and paint repairs; two-year guarantee on property restoration). An in-house thermography team conducts on-site risk assessments of heating, electrical, fire protection, and crime prevention systems for commercial insureds. Customer satisfaction with claims handling is reported at 86% for property and 79% for auto based on 2023 claimant surveys.

Economical generates revenue through recurring annual insurance premiums across personal, commercial, specialty, and group product lines, with broker commissions publicly disclosed (ranging from 7.5-12.5% for commercial vehicles to 20-25% for surety). The company completed demutualization in 2021 alongside the IPO of parent Definity Financial Corporation, and in January 2026 completed the acquisition of Travelers Companies' Canadian P&C operations, materially expanding its policyholder base.

Name

Economical Insurance

Legal name

Definity Insurance Company

Website

https://economical.com

Company type

Private

Founded year

1871

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Economical Insurance is a Canadian property and casualty insurer founded in 1871, serving over one million customers across Canada exclusively through independent insurance brokers, offering personal, commercial, and specialty coverage as a subsidiary of Definity Financial Corporation.

Ownership category

akta.pro rank

Product category

Property and Casualty Insurance

NAICS

Direct Property and Casualty Insurance Carriers (524126), Insurance Carriers and Related Activities (524)

SIC

Fire, Marine & Casualty Insurance (6331), Insurance Carriers, Nec (6399)

akta.pro primary industry

Commercial Property Insurance (FSAJACAE)

akta.pro secondary industries

Travel & Accident (Non-Life) Insurance (FSAJAMAN), Commercial Auto & Fleet Liability Insurance (Primary) (TLABANAA)

Keywords

• Property casualty insurance
• Personal auto insurance
• Home insurance
• Commercial insurance
• Insurance broker distribution

Headquarters

HQ city

Waterloo

HQ country

Canada

HQ region

North America

Offices9 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D, Infrastructure, Others

Revenue model

1. Insurance Premiums: Economical Insurance generates revenue through property and casualty insurance premiums. Personal insurance includes car, home, condo, tenant, landlord, and cottage coverage. Business insurance covers property, commercial vehicles, liability, and specialty lines including farm, ocean marine, technology, oil and gas, alternative energy, financial lines, surety bonds, and cross-border solutions. Group insurance provides car and home coverage through employer groups and associations. Premiums are paid on subscription/recurring basis through annual or multi-year policies.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels7 records

Core offering

Economical Insurance is a Canadian property and casualty insurer that underwrites and distributes personal insurance (auto, home, condo, tenant, landlord, cottage), business insurance (commercial property, commercial vehicles, liability, specialty lines), and group insurance products. All products are sold exclusively through a network of independent insurance brokers across Canada, serving more than one million policyholders with 24/7 claims service backed by over 600 claims professionals.

Product overview

Economical Insurance offers a comprehensive property and casualty insurance portfolio under the Economical Insurance brand (now transitioning to Definity Insurance). The core offerings include Personal Insurance (car and home insurance with sub-products for homeowners, condos, tenants, landlords, and cottages), Business Insurance (commercial property, vehicle, and liability coverage with industry-specific solutions for ocean marine, technology, oil & gas, and alternative energy sectors), and Specialty Solutions (farm, financial lines, surety bonds, cross-border, and complex mid-market insurance). Group Insurance programs provide employer/group member discounts on personal lines products. The company distributes through a national network of independent insurance brokers and serves customers through 24/7 claims services with Definity Repair Partners. Economical Insurance was founded in 1871 and is headquartered in Waterloo, Ontario, as a member of Definity Financial Corporation.

Differentiator

Problem solved

Functional benefit

Products and services

• Personal Auto Insurance Vehicle insurance coverage for individual Canadian consumers, addressing mandatory provincial auto insurance requirements and broader driving-related risk protection. Sold through independent insurance brokers.
• Home Insurance Residential property insurance for Canadian homeowners, covering dwelling and personal property risks. Distributed via independent brokers.
• Condo Insurance Insurance tailored for Canadian condominium unit owners, complementing the building's master policy by covering unit contents and related exposures. Sold through independent brokers.
• Tenant Insurance Insurance for Canadian tenants renting a residence, covering personal contents and liability exposures. Distributed via independent brokers.
• Landlord Insurance Insurance designed for Canadian residential landlords, covering rental property exposures distinct from standard homeowner coverage. Sold through independent brokers.
• Cottage Insurance Insurance coverage for seasonal and recreational Canadian properties such as cottages, addressing risks associated with secondary and part-time-occupied residences. Sold through independent brokers.
• Commercial Property Insurance Property insurance for Canadian businesses covering commercial buildings, contents, and related exposures. Sold through independent commercial insurance brokers.
• Commercial Vehicle Insurance Vehicle insurance coverage for Canadian businesses operating commercial vehicles, addressing regulatory and operational driving risks. Distributed through independent brokers.
• Commercial Liability Insurance Liability coverage for Canadian businesses against third-party bodily injury, property damage, and related exposures. Sold through independent commercial brokers.
• Commercial Specialty Insurance Specialty commercial insurance offerings for Canadian businesses with non-standard or industry-specific risk profiles. Distributed via independent brokers.
• Group Insurance Group insurance products offered to Canadian employer, association, or affinity groups, providing packaged coverage for their members or employees. Distributed through independent brokers.

Quantifiable outcome

• 86% of customers satisfied with property claim experience when using Definity Repair Partners
• +2 more outcomes

Named customers5 records

Segments8 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Four partnerships are on record, tiered core and minor.

• Definity Repair PartnerscoreImplementation/ SI/ Consulting PartnerNetwork of approved contractors and repair facilities that must meet rigorous performance standards. Partners provide hassle-free service with no appraisals or estimates required when customer authorizes repairs. Includes lifetime guarantee on vehicle body, parts, and paint repairs. Two-year guarantee on property restoration.
• Canadian Red CrossminorStrategic or Co-development PartnerStrategic partnership for disaster relief and emergency preparedness. Economical has donated over $1 million to the Red Cross since 2013, including $450,000 committed in 2017 to the national disaster management program. Supports an average of more than 300 Canadians per day.
• General Insurance OmbudService (GIO)minorOthersExternal independent dispute resolution service for complaints not resolved through internal process. GIO is a Canada-wide body assisting consumers with insurance complaints. Economical/Dominion have selected GIO to handle unresolved complaints.
• Financial Consumer Agency of Canada (FCAC)minorOthersFederal regulatory body supervising compliance with consumer protection laws. Handles complaints escalated beyond internal resolution process for federally regulated insurance companies.

Scale indicators9 records

Recent moves9 records

Expansion highlights6 records

Direct peers

• Intact Financial Corporation: Canada's largest property and casualty insurer, writing personal and commercial property, auto, and specialty lines through both broker and direct channels. Direct competitor to Economical across virtually all of Economical's product lines with national Canadian presence.
• Allstate Insurance Company of Canada: Canadian subsidiary of Allstate providing personal property and auto insurance through a broker and direct distribution model. Direct competitor to Economical's personal lines business.
• Aviva Canada: Major Canadian P&C insurer offering personal property, auto, and commercial coverage primarily through the broker channel. Direct competitor to Economical in broker-distributed P&C with overlapping product portfolio.
• Wawanesa Mutual Insurance: Canadian mutual P&C insurer providing personal and commercial coverage through a broker and direct distribution model. Direct competitor across the personal and commercial lines Economical writes.
• Desjardins Insurance: P&C and life insurance arm of the Desjardins Group, one of Canada's largest financial cooperatives. Provides auto, home, and commercial coverage with strong Quebec presence that competes directly with Economical's Montreal office.
• The Co-operators Group: Canadian multi-line insurer with strong P&C, life, and farm coverage distributed primarily through brokers and agent networks. Direct competitor to Economical in personal, commercial, and farm insurance.
• TD Insurance (Toronto-Dominion Bank): Major Canadian personal and commercial P&C insurer operating through both direct-to-consumer and broker channels. Competes with Economical in personal lines and small commercial insurance.
• Northbridge Financial Corporation: Canadian commercial P&C insurer owned by Fairfax Financial, providing specialty commercial and mid-market coverage through brokers. Directly competes with Economical's commercial and specialty lines.

Emerging players

• Sonnet Insurance: Digital-first personal home and auto insurer operating as a sister brand under Definity Financial Corporation. While part of the same corporate family, it competes with Economical's personal lines through a direct-to-consumer digital model.

Others

• Travelers Canada: Canadian P&C operations of The Travelers Companies, which were acquired by Definity Financial Corporation (Economical's parent) in January 2026. Now operating within the Definity/Economical platform, previously a direct competitor.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/economicalCA
• YouTubeyoutube.com/user/EconomicalInsurance
• LinkedInlinkedin.com/company/economical-insurance
• Instagraminstagram.com/economical.insurance
• Facebookfacebook.com/economical

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Subsidiaries2 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Economical Insurance