British Columbia, affectionately called “BC” or “Beautiful British Columbia” on local car licence plates, consistently ranks among the best places to settle to and live in Canada. And who can blame people for saying so, since BC has better air quality and for some, better warmer weather.
BC is one of the few provinces that can boast of a good quality of life, thanks to the excellent education and healthcare systems. These are what afford residents the essential services that are the envy of other places.
In terms of the local economy, BC’s economic environment is considerably robust, offering a myriad of job opportunities. BC has many thriving industries like tourism, hospitality, biotechnology, alternative fuels, software development, finance, and of course, insurance. In fact, the insurance industry there makes a significant contribution to the province’s GDP.
Given the environment and job opportunities, it can be a good move to start an insurance career and move to BC. That’s why Investment News provides you with this guide on how to get an insurance broker licence in BC, to help you establish a potentially stable, long-term career in insurance there.
We’ll provide insight on questions about getting your BC insurance broker licence, including:
In this guide, you can get insights on these and more pertinent questions about how to get an insurance broker licence in BC. Let’s get into it.
In the insurance industry of BC or any other province, having licensed brokers is of great significance. Licensed brokers can reassure consumers that their insurance industry is worthy of their trust, as it is composed of certified, skilled, professionals who adhere to regulations and ethical standards.
This gives the insurance industry a high degree of credibility. Here are the factors that emphasize the importance of licensed insurance brokers:
Not many consumers are aware that insurance brokers, once licensed, have an obligation to act in the best interest of their clients. This is called the fiduciary duty. This effectively makes licensed insurance brokers in BC (and elsewhere) advocates for the consumer and protect their interests.
Due to the vast knowledge and insurance providers that insurance brokers navigate, this makes them invaluable to the insurance industry and to the needs of consumers. Clients need knowledgeable brokers’ expertise in navigating the nuances of insurance broking. Only licensed, trained, and experienced insurance professionals like brokers can perform this daunting task for consumers.
Insurance is a heavily regulated industry. Regulations are necessary to ensure that the consumers are protected, and the insurance industry remains financially stable and sustainable. Insurance agents, brokers, and adjusters must be licensed, as this makes them fully aware of the regulations and the consequences of violating them.
Insurance brokers in BC follow a strict code of conduct and are expected to transact business with integrity and in good faith. Licensed brokers who fail to comply and adhere to these ethical standards can have their licenses revoked.
In British Columbia, this licence is a certification that allows individuals, partnerships, or corporations to work and transact business as insurance brokers in that province. The BC insurance broker licence is essential for anyone who wants to engage in the insurance broking profession. The licence also serves as proof of regulatory compliance, adherence to ethical standards, and having the right skills and knowledge.
The main requirements for broker licensing in BC is to:
In terms of the education requirement for aspiring insurance brokers, BC is the only province that stands out from the rest. In BC, a college degree is the minimum educational requirement for broker licence eligibility. As for all other provinces, a high school diploma or GED equivalent will suffice, with the college degree as an individual option.
Would-be brokers must all apply for the General Insurance Salesperson’s Licence, and they must meet these minimum eligibility requirements:
In beautiful British Columbia, the broker licensing process resembles the licensing process for brokers in other parts of Canada. Except in this case, the GIS is unique to BC, and it is the licence that both aspiring insurance brokers and agents are required to have.
The process for acquiring this licence is a linear and rather simple process, and involves accomplishing these steps:
As stated earlier, a college degree is mandatory for insurance broker applicants. Get a degree that can be helpful in establishing your insurance broker career.
A degree in law, accounting, business, marketing, finance, economics, mathematics, or statistics can be useful.
Although not mandatory, a pre-licensing course can help prepare you for the licensing exam. These courses will usually cover fundamentals of insurance and insurance principles.
An important requirement is for broker candidates in BC to be actively employed in a brokerage firm. Keep in mind that in BC, broker licences are only issued to those currently working in the insurance industry to ensure that licensed brokers have a degree of professionalism, skills, and experience.
After completing a pre-licensing course (or self-studying), candidates can take the required licensing exams. This can be either of:
Fundamentals of Insurance Exam: covers basic principles and standard insurance practices
Canadian Accredited Insurance Broker (CAIB) Level 1 Exam: covers essential insurance principles and concepts
Once a candidate has completed their pre-licensing course, passed the exams, completed their background check, and gets hired at an insurance brokerage, they can apply to the Insurance Council of BC. Candidates can apply for the insurance broker licence in BC online. Here’s how to do it:
Create an account and log onto the ICBC online portal.
Accomplish the application forms and upload the necessary documents; typically, these are your exam results and a government-issued ID with a photo.
Request confirmation of your employment with an insurance brokerage firm and attach it to your online application as required.
After passing the exams, the Insurance Council of British Columbia (ICBC) will confirm this and send notice of their suitability assessment. This stage is crucial, as the ICBC pores through the candidate’s exam results and background check. It's here that they will conduct a thorough investigation of the candidate’s professional and ethical background.
If their application is approved, the ICBC licensing team will send a confirmation email to the candidate. This confirmation email signifies that the candidate is now a licensed broker and can legally transact business as an insurance broker in the province.
This is necessary for insurance brokers in BC to maintain their licence. Accumulating the CE credits is an ongoing yearly requirement. A minimum of eight credits must be earned each year from the time of licensing. Keep in mind that the CE program is a necessary step to ensure BC brokers remain up to speed when it comes to industry developments, trends, and any changes in regulations or best practices.
File your CE records and maintain an accurate account every year. You must also pay the necessary licensing fees and keep an accurate record of your accrued credits for audits for licence renewal.
As with most provinces in Canada except for Québec, the licence levels in BC are:
Level 1 – this is the entry-level licence and what those new to the insurance industry should be mainly concerned with. Brokers with a level 1 licence can take on a variety of insurance brokerage roles, but not without the supervision of a broker with a higher-level licence. To get this licence, candidates must pass either the CAIB 1 or Fundamentals of Insurance exams.
Level 2 – Candidates must have level 1 licensing and pass the CAIB level 2 and level 3 exams. Those who have the level 2 licence can manage their brokering transactions independently and can supervise brokers with a level 1 licence.
Level 3 – The highest level of insurance broker licence, level 3 licence holders must meet the level 2 requirements and pass the CAIB 4 exams. This licence is meant for those who want to take on managerial roles or run their own brokerage firm.
Aspiring insurance brokers in BC have two main options for getting the Level 1 broker’s licence, which are the FOI exam and the CAIB 1 exam. Each exam path has their own associated exam fees and costs. Here’s a breakdown of those options:
In addition to the exam fees, part of getting an insurance broker licence in BC is paying licensing fees. The costs can vary slightly, depending on when the licences are issued. Here’s how much the licensing fees can be:
If issued between June 1 and February 29, the fee is $225 – consisting of a $200 application fee and a $25 government fee
If issued between March 1 and May 31, the fee is $250 – consisting of a $200 application fee and a $50 government fee
No. Those who have broker licences from another province or jurisdiction cannot simply start insurance brokering in BC. Due to differences in local regulations, insurance licences are often not transferable between provinces in Canada.
For instance, the Registered Insurance Brokers of Ontario (RIBO) level 1 licence does not require a college degree, while the ICBC’s General Insurance Salesperson’s Licence requires one. These subtle yet important differences can make it complicated for an Ontario broker to transition their practice to BC.
In a big BC city like Vancouver, the average salary of an entry-level insurance broker is $40,999 a year or $19.71 an hour. This is around 33% higher than the national average. Take note, salaries vary according to the individual broker’s skill, years of experience, position, and location. Here are some other broker salaries in other BC cities:
Source: Indeed.com
Establishing your insurance career in BC, specifically as an insurance broker, has its share of pros and cons. Those who have the time and the means to acquire the requisite college degree can certainly start in BC. But those who find the educational requirement too stringent can try other similarly prosperous provinces to start as an insurance broker.
Did you find this guide on how to get your insurance broker licence in BC helpful? Let us know in the comments.
