Guide to insurance broker courses in Canada

Pared down to its essentials, insurance is the process of lessening the burden of risk by spreading it out among a few to many. By doing so, the cost of distributing that burden of risk is made significantly lower. It can also be said that insurance is a way for individuals, organizations, and businesses to support each other in their time of need.

This is what can make insurance not only a profitable career but also a fulfilling profession. As an insurance broker, it’s your job to help people. The role that an insurance broker plays in everyday life is more important than many people realize. That’s why for those who want to break into this profession, the government requires that you have a licence. And to earn this, you will need to take the proper insurance broker courses.

Insurance Business will delve into some insurance broker courses you can take to get your licence. We’ll provide insight into the different insurance broker online courses available, if there are any free insurance broker courses online, and more to help you choose the right insurance broker certificate program.

Types of insurance broker courses available

As you take the first steps in getting into the Canadian insurance industry, you will discover that there are several types of licensing courses available. Keep in mind, however, that most provinces in Canada (except Quebec – more on this later) follow a standard practice of offering a three-tier licensing structure consisting of:

Level 1 – Entry level

This basic licence allows accredited insurance brokers to operate under the supervision of a principal broker or level 2 or level 3 broker. To get to level 1 licensing, candidates must pass the foundational exam for insurance brokers.

Level 2 – Unsupervised licence

When a licensed broker takes additional courses and exams, then obtains a level 2 insurance broker licence, they can directly work with clients without supervision.

Level 3 – Management licence

The highest-level insurance broker’s licence enables its holder to go as far as operating their own brokerage business. Obtaining this level of certification requires individuals to take and pass advanced exams, while also having the relevant work experience.

The insurance broker licence courses vary by state or province, and there will be some differences in the content they cover. However, each state will generally have their own version of levels 1, 2, and 3. Here are the insurance broker courses to choose from by state:

1. Alberta

• Level 1: Getting the entry-level insurance broker licence here requires taking the Alberta General Insurance Level 1 course. You can take this course from an Alberta Insurance Council-accredited provider, then take and pass the level 1 exam.
• Level 2 and 3: After taking the level 1 exam, licensed brokers can then take the exams for the higher levels. The main difference between levels 2 and 3 is that you will need some work experience before taking the level 3 exams.

2. British Columbia

• Level 1: This involves completing the General Insurance Essentials (GIE) course, which is typically administered by the Insurance Institute of Canada (IIC). Individuals can obtain their insurance broker’s licence in BC by passing the level 1 exam.
• Level 2 and 3: Once you’ve taken the GIE, passed the level 1 exam, and secured your insurance broker licence, you will need to obtain the level 2 licence to practice independently and service clients directly. To get to level 2, candidates must take the Canadian Accredited Insurance Broker (CAIB) courses; they must take CAIB 2 and CAIB 3 specifically for level 2. To upgrade their insurance broker licence to level 3, they must take CAIB 4, which focuses on advanced topics like personal lines insurance.

Recent changes for British Columbia, Level 3 insurance broker licence

Having a management or ownership role used to be one of the main requirements for obtaining your licence to practice as an insurance broker in BC.

However, recent changes were enacted, doing away with this requirement. The qualifications for securing a level 3 licence now only include a candidate’s experience and education. So, even if you’re not in a management position, you may take steps to get your level 3 licence in BC if you meet the other requirements.

3. Manitoba

• Level 1: Candidates can take the Fundamentals of Insurance (FOI) course or the CAIB 1 course. As with other provinces, they must then take and pass the exam to obtain their insurance broker licence.
• Level 2 and 3: Candidates can likewise take the CAIB 2 and CAIB 3 for level 2 and CAIB 4 for level 3. Manitoba takes on a more flexible approach to insurance broker licensing. You may take the CAIB courses, or those from the Insurance Brokers Association of Manitoba (IBAM), which is the main provider of licensing courses and continuing education (CE) for insurance brokers there.

4. New Brunswick, Newfoundland & Labrador

• Level 1: The mandatory courses for getting the level 1 insurance broker licence in these provinces are the FOI course or CAIB 1. These fundamentals cover the basics of insurance in Canada, including the principles, regulatory environment, and the types of insurance. Candidates must then take and pass the corresponding exam to get their licence.
• Level 2 and 3: Level 2 and level 3 require taking the CAIB 2 and CAIB 3 courses respectively, then passing the exam.

5. Nova Scotia

• Level 1: For the level 1 insurance broker licence, residents of Nova Scotia can choose the FOI, CAIB 1, GIE Parts I and II, or the CIP Program C11 and C1. Candidates must then pass the corresponding exams to secure their licence.
• Level 2 and 3: Apart from having the level 1 licence, CAIB 2 and CAIB 3 are acceptable courses for a level 2 licence. These courses cover advanced knowledge of general insurance practices and the essentials on how to become a commercial lines broker. For level 3, candidates must complete the required courses and exams for levels 1 and 2, along with CAIB Modules 1 through 4. These courses cover advanced brokerage management topics and complex insurance issues. Only then can you take the finals for level 3 licensing.

6. Ontario

• Level 1: The Registered Insurance Brokers of Ontario (RIBO) offers their own branded insurance broker course, RIBO level 1, which is the entry level insurance broker licence in this province.
• Level 2 and 3: As in the other provinces, RIBO licence level 2 and level 3 courses and passing their corresponding exams are required for the insurance broker licence. Note that RIBO insurance broker courses contain some CAIB content, although much of the course content is RIBO-branded.

7. Prince Edward Island

• Level 1: To get the level 1 licence here, candidates must take the Fundamentals of Insurance course offered by the Insurance Brokers Association of Canada. Candidates are not restricted to these courses, as they can take the C11 Principles and Practice of Insurance from the Insurance Institute of Canada. Another option is taking the C81 and C82, General Insurance Essentials Parts 1 and 2. They can then take the exam after successful completion of these courses.
• Level 2 and 3: Level 2 requires more specialized training and courses like the CAIB 2 certification program, which tackles more advanced insurance broker topics. For the level 3 insurance broker licence in this province, candidates can take the exam after taking the CAIB 3 program focusing on management-level skills and information for tackling brokerage operations.

8. Québec

What’s unique about Québec is that the province does not subscribe to the same tiers or levels of insurance broker licensing. Québec achieves this by operating under the guidance of the Autorité des Marchés Financiers (AMF). For anyone who wants to practice as a licensed insurance broker here, they must take the AMF’s licensing exams.

9. Saskatchewan

In this province, aspiring brokers are required to go through a similar 3-level licence with a fourth optional level.

• Level 1: Candidates must take and pass the General Insurance Council Bylaw Examination, along with the CAIB1 exam or Fundamentals of Insurance Exams. As with the other provinces, obtaining the Level 1 licence enables new brokers to sell personal lines insurance under the supervision of a senior broker and cannot manage a brokerage nor sell commercial lines.
• Level 2 and 3: To obtain a level 2 licence, candidates must successfully complete CAIB 2 and CAIB 3 exams; and while a level 2 licence allows brokers to sell both personal and commercial lines, they cannot manage a brokerage. For level 3, brokers must complete the CAIB 4 exam in addition to completing the requirements for a level 2 licence. Those holding a level 3 licence can manage a brokerage and oversee up to three office locations. However, they must also have at least two years’ worth of experience working as a licensed agent in the past five years.
• Restricted Auto License: For those who wish to sell auto insurance exclusively in this province, this is mandatory. For this licence, brokers must take the Insurance Brokers’ Association of Saskatchewan (IBAS) Auto Part 1 or the SGI New Issuer Training Program, followed by IBAS Auto Part 2 exam. After taking those and passing the General Insurance Council Saskatchewan (GICS) Auto Bylaw Exams can a specialist auto insurance broker get this licence.

Organizations governing insurance broker licence issuance

Below is a table showing the different regulatory bodies of the different provinces. These are the offices in each major province where you will likely have to go to send your application to become an insurance broker.

The top accredited insurance broker programs in Canada

There are several excellent broker programs you can take to learn the ins and outs of the Canadian insurance industry and best practices to secure your licence. Here are the top accredited insurance broker courses to choose from:

1. Fundamentals of Insurance (FOI)

Course provider: Insurance Brokers Association of Canada (IBAC)

The FOI program is an introductory course for the Property & Casualty (P&C) insurance sector. This program can provide foundational knowledge mostly for those who are just getting into insurance, whether as an insurance agent or insurance broker.

Course content: The course contains a myriad of basic topics. This includes the history of insurance, different roles in the insurance industry, insurance contracts, personal insurance, commercial insurance, and legal principles applicable to insurance.

Why it's recommended: Successful completion of FOI fulfills the insurance broker licensing requirements of several provinces.

2. Canadian Accredited Insurance Broker (CAIB) Program

Course provider: Insurance Brokers Association of Canada (IBAC)

The CAIB program gives aspiring insurance brokers a good chance of obtaining a nationally recognized professional designation. This program works well in enhancing the competence and confidence of most insurance professionals.

Course content: The CAIB offers several learning modules that cover personal lines, commercial lines, and management skills and knowledge to run brokerages. The modules include:

• CAIB 1 – focuses on basic insurance principles, including personal liability and home insurance.
• CAIB 2 – an introduction to commercial insurance; business interruption products, crime insurance, and commercial property are covered here.
• CAIB 3 – this covers risk management principles and specialized commercial coverage.
• CAIB 4 – this module prepares candidates for managerial positions in a brokerage, focusing on important topics like the relationship between insurance companies and insurance brokers, and organizational management.

Why it’s recommended: Apart from the valuable knowledge and skills this program teaches, the program itself is very flexible. Course content is available in various formats, from online self-study, in-classroom sessions, and immersion courses.

3. Commercial Insurance Certificate Program

Course provider: Insurance Brokers Association of Ontario (IBAO)

This is an e-learning certificate program that can enable seasoned personal lines brokers to break into commercial lines brokering. It is an ideal program for enhancing a broker’s skills and knowledge in commercial lines.

Course content: This program provides a comprehensive collection of courses meant to turn insurance brokers into specialists in commercial lines insurance. The course contains valuable instruction in commercial general liability insurance, commercial property insurance, client relationship management, and more.

Why it’s recommended: This is an extremely helpful and valuable course for brokers new to the commercial lines sector. Some of the course offerings, like client relationship management, can help new brokers become more successful in their careers.

4. Canadian Professional Insurance Broker (CPIB) program

Course provider: various provincial broker associations across Canada

The CPIB program lets those with the CAIB or CIP designation specialize in personal lines, commercial lines, or brokerage management.

Course content: The program consists mainly of three mandatory and three elective courses. These courses cover Law & Professional Ethics, Claims Administration, and Advanced Personal Lines – all of which are mandatory. Students of the program can choose any three for their elective courses from:

• accounting and finance
• business administration
• communications
• organizational behaviour
• risk management
• sales management

The IBAM shows an example of what you can expect from this course.

Why it’s recommended: The program offers a wide range of courses that can endow even seasoned insurance professionals with essential skills and knowledge to succeed in the P&C insurance sector.

5. Insurance Institute of Canada (IIC) certification courses

Course provider: IIC

The IIC itself is the provider for courses that enable candidates to obtain not just an insurance broker certification, but also designations like Chartered Insurance Professional (CIP), Fellow Chartered Insurance Professional (FCIP). The IIC also offers Commercial Insurance and Risk Management certification programs.

Course content: The IIC offers a wide range of courses that deal with many aspects of different types of insurance. There are about 47 courses offered in total.

Why it’s recommended: The courses offered by the IIC can provide insurance professionals with a comprehensive and impressive framework for professional growth and development. Candidates can gain in-depth knowledge and practical skills that prepare them for complex insurance scenarios.

Is all the time and energy you may have to invest in taking these broker insurance courses worth it? This video may help you see the perks of becoming an insurance broker. The video presents the career of an insurance broker as an interesting one:

Free insurance broker courses

You may be pleased to know that there are some insurance broker courses available online – for free. Keep in mind, however, that these courses may not be as comprehensive as a paid course, and they may not provide sufficient preparation for your licensing exams. These free insurance broker courses lack in-depth discussions on insurance laws, regulations, and products.

1. Fundamentals of Insurance Brokers

Course provider: Allison

This free insurance broker course provides basic instruction on the essential principles and practices of the Canadian insurance industry. It gives basic knowledge about how to pursue an insurance broker career and tips on finding the right policy.

2. Free Sample Courses by the Institutes

Course provider: The Institutes

Many insurance broker courses are included here for free, such as:

• Accredited Adviser in Insurance (AAI): Contains instruction for developing foundational skills to help you succeed in insurance.
• Associate in Insurance Data Analytics (AIDA): Teaches those who wish to develop data gathering and analysis that will be applicable for insurance practices.

3. Broker Launchpad

Course provider: Insurance Brokers Association Ontario (IBAO)

This course offers considerable preparation for the RIBO level 1 examination. It can also include the use of free resources and introductory materials, with some course content charging associated fees. Broker Launchpad can be valuable to new brokers, but they shouldn’t rely on it for their licensing exams.

There is a process to getting your insurance broker licence in Canada, and taking a good course to gain essential knowledge is one of the important steps. If you are new to the industry, consider taking courses that can give you an edge in your career for the long-term, and not just to get your licence.

Which of these insurance broker courses are you considering for getting your licence and jumpstart your brokering career? Tell us your story in the comments.