There are many guides and articles online that espouse the career of an insurance broker. Choosing this career path, whether you are a fresh graduate, an insurance professional from another area, or someone from an entirely different industry, can be a wise move.
A particularly good career move is to become an insurance broker in a prosperous Canadian province like British Columbia. BC is a popular choice for people looking for a good quality of life, one that includes excellent healthcare and educational systems.
This province is also attractive due to its strong economy with many job opportunities in industries like technology, forestry, mining, and tourism. The presence of these industries can translate into a flourishing insurance industry as well, so the career of an insurance broker here is a viable option.
What’s more, in BC, people earn competitive wages, and many employers offer extended benefit plans.
If you were to shift careers or move to BC and become an insurance broker here, there are many important questions which Insurance Business can shed light on:
How do you become an insurance broker in BC?
How do you get your insurance broker licence in BC?
How much do insurance brokers make in BC?
We’ll tackle these and more critical questions about how to become an insurance broker in BC, so let’s dive into it.
Some people make the mistake of using the terms insurance agent and insurance broker interchangeably. This can be a serious error, because the two professions are very different. The main role of an insurance broker is to act as an intermediary between their clients and the insurance companies that the broker represents. Insurance agents, meanwhile, represent one or several insurance companies, selling their insurance products to clients.
While their functions appear to be similar, they have critical differences in terms of who they serve, and how they present insurance policies to clients. Here’s how an insurance broker would go about delivering their services to clients:
Insurance brokers make a thorough assessment of their clients’ needs and circumstances.
They then research insurance policies from several different insurance companies.
After analyzing the risks and insurance needs, they present their recommended tailored policies.
Brokers will continue to assist their clients, assisting them in processing claims and renewing policies.
Insurance brokers function as intermediaries, salespersons, and advisors to their clients as opposed to insurance agents who often only go so far as selling insurance to their clients.
To become an insurance broker in BC, you will need to obtain a university degree. This educational requirement is what sets BC insurance broker licences apart from those in other Canadian provinces.
Typically, other provinces only require a high school diploma or GED to become an insurance broker. These are the important details about the educational requirement:
Candidates are required to have a college degree to qualify for applying for an insurance broker licence in BC. This licence is formally known as the General Insurance Salesperson’s Licence.
While there is no specific requirement, here are some of the bachelor’s degrees that can help you become a successful insurance broker in BC:
These degrees can be very beneficial to those aspiring to become an insurance broker in BC or any other province. With these degrees, you can gain the foundational knowledge and learn the essential skills for a successful career in insurance.
As previously mentioned, the licensing process in BC has its own unique features. The first all-important step in this process is to ensure that you qualify for the licence – and for that you'll need a college degree.
Once you’ve earned a degree, the next step is to take pre-licensing courses. Although they are not mandatory, they can be helpful in preparing you for the licensing exams and increase your chances of passing, if not getting higher-than-average marks.
The Insurance Council of British Columbia (ICBC) governs the licensing exam, and you have a choice between two licensing exams:
Fundamentals of Insurance Exam – this covers basic insurance practices and principles.
Canadian Accredited Insurance Broker (CAIB) Level 1 Exam – this is a more advanced exam that covers essential aspects of insurance.
The licensing process for brokers in British Columbia consists of three distinct levels:
Level 1 – This allows entry into the field of insurance and lets brokers operate in various brokerage roles, but only under supervision. To obtain a level 1 licence, candidates must pass either the Fundamentals of Insurance or CAIB 1 examination.
Level 2 – A level 2 licence lets brokers manage their brokering transactions independently and supervise level 1 licence holders. Passing the CAIB level 2 and level 3 exams is required for this licence.
Level 3 – Candidates must meet the educational requirements for the Level 2 licence and pass the CAIB 4 exam. The Level 3 licence allows brokers to manage an entire brokerage business.
Keep in mind that broker candidates have up to one year to apply for their insurance licence after completing either exam. Exam results remain valid for an entire year, but should you fail to apply before validity of your exam results expires, then you must retake the exam.
Becoming an insurance broker in British Columbia is similar to how you become a licensed broker in other parts of Canada, but with a few important differences. For starters, BC requires that you have a university degree first to qualify for a licence application. After earning your degree, you can proceed with the steps for becoming a broker in BC.
Aspiring brokers must complete either of these certification programs:
The licensing process in BC requires that you currently work in a brokerage firm. Having this employment is critical to your licence application, since the licence is only granted to individuals who are actively working in the insurance industry. Most brokerage firms assist employees in applying for the licence.
Aspiring brokers must apply for the General Salesperson’s Licence via the ICBC. The application can be done online. Here’s how to do it:
Once you’ve secured employment at a brokerage firm, taken a pre-licensing course, and submitted your application, you may take the licensing exam at the prescribed date. After completing and passing the exam, the ICBC will confirm this, and a suitability assessment should follow.
The suitability assessment includes making professional conduct and background checks. Passing this assessment is critical for candidates to receive their licence.
After their application is approved, candidates will receive a confirmation email from the ICBC’s licensing team. This officially signifies that the candidate is now an insurance broker and may legally operate as an insurance broker in British Columbia.
To maintain your licence, you must fulfill the required continuing education (CE) credits. This is an ongoing requirement, with a minimum of eight credits that must be completed each year. The CE program is meant to ensure that brokers in BC stay updated on industry trends, changes, and best practices.
Brokers must file their CE records every year, renew their licence as required, and pay the necessary fees. They must also provide accurate course completion records for audits as part of the licence renewal process.
There are many educational institutions that offer courses, classes, and study materials. One example is the Insurance Institute, which offers four educational pathways for you to achieve this. The different options allow candidates to prepare for the exams whether they are currently working, working part-time, or intend to be full-time students. For additional info, check out our other article on the insurance broker courses you can take in BC and in other provinces.
This is ideal for aspiring brokers who want to learn at their own pace. The program requires completion within a four-month period.
C130 is an online course that offers fast-track options. Check the CIP equivalencies page to register for the course that suits your needs.
These can be online or in-person classes you can take. This learning strategy offers benefits like real-time instruction, the opportunity to interact, learn with and ask questions with your peers, and have a range of helpful supplemental materials.
You can take these courses at the Insurance Council’s partner colleges like Douglas College and Camosun College.
In a nutshell, the CAIB 4 title covers broker management. This is specifically designed for those pursuing management positions in a brokerage firm. CAIB 4 designation is valuable for learning and showing that you possess a high level of knowledge and technical skills in insurance.
To earn this, a broker must take all CAIB exams including CAIB 4, taken in any order. This is one of the required exams to obtain a level 3 General Insurance licence. Seasoned insurance professionals recommend that you start with the CAIB 2 and CAIB 3 exams, giving you a level 2 licence.
You may then take the CAIB 4, apply for a level 3 licence and run a brokerage if that’s your goal. To fulfill all the requirements, you can then finish with the CAIB 1, which is very much like the Fundamentals of Insurance exam.
The CAIB 4 is a highly valued designation in the Canadian insurance industry. Earning this gives the titleholder advantages like:
A CAIB 4 title demonstrates that an insurance broker has the technical and advanced professional knowledge of insurance and the insurance industry.
Titleholders typically receive a higher insurance broker salary than those without it.
Employers, insurance providers, and even clients may be impressed at an insurance broker’s CAIB 4 credentials. This can be a deciding factor for whether they decide to do business with or contract a broker’s services.
The average yearly salary for an insurance broker in the province is $86,159. This translates to $41 an hour, or $7,179 monthly.
Although the range for insurance broker salaries in BC is from $21,000 to $191,500, most brokers here are paid in these ranges:
|
Percentile rank |
Salary |
|
50% |
$50,000 |
|
75% |
$100,000 |
|
90% |
$149,000 |
Another factor that influences the average insurance broker salary is location. Here are the cities that give the highest insurance broker salaries in BC:
|
City |
Annual salary |
Hourly pay |
|
North Cowichan |
$93,667 |
$45.03 |
|
Duncan |
$93,307 |
$44.86 |
|
Oak Bay |
$93,137 |
$44.78 |
|
Victoria |
$92,743 |
$44.59 |
|
Courtenay |
$91,630 |
$44.05 |
|
Kelowna |
$90,837 |
$43.67 |
|
West Kelowna |
$90,820 |
$43.66 |
|
Chilliwack |
$89,807 |
$43.18 |
|
Campbell River |
$89,745 |
$43.15 |
|
Terrace |
$89,096 |
$42.83 |
Source: ZipRecruiter
Anyone looking to start a long-term insurance career in a Canadian province with a good quality of life and accompanying high living standards can look no further than British Columbia.
Those who aspire to settle there and begin their insurance broker career should keep in mind that BC has very specific licensing requirements, regulatory frameworks, and unique market dynamics. Some people may find this challenging. If you find the process and regulations not to your liking, you can always opt to become a broker in another province.
But those who take the time to know exactly how to become an insurance broker in BC should surmount these challenges and attain their career goals with less difficulty. Who knows, given time, sufficient effort and perhaps a bit of luck, you may find yourself listed as among the Best Brokers in Canada.
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