If you’re looking to establish a career in insurance but are unsure of staying put in your location for work, the province of Alberta might be the place for you. With its diverse and welcoming local communities, plenty of sun, natural wonders like lakes, waterfalls, and parks, Alberta can be a good place to settle in.
Apart from the attractive scenery, there are many job opportunities in Alby. Its capital city of Edmonton is the fifth largest city in Canada and is a crucial part of the country’s oil and gas industry. And big industry often means there will be a burgeoning populace, which will need different types of insurance.
The demand for insurance brokers in provinces like Alberta is steadily growing, so why not consider getting your insurance broker licence in Alberta and starting your insurance career there? This move will raise important questions for you like:
Insurance Business will shed light on this topic in this guide about how to get an insurance licence in Alberta. So, let’s dive right into it.
As with insurance brokers in other provinces, brokers here play a crucial role as intermediaries between clients and insurance providers. An insurance broker’s main responsibilities in the province are:
The insurance broker licensing system in Alberta is distinct from other jurisdictions since it is governed by the province’s own licensing body, the Alberta Insurance Council (AIC). This regulatory body oversees all licensing for insurance professionals, including insurance agents, brokers, and adjusters in the province. The General Insurance License in Alberta is necessary before engaging in any insurance-related activities.
The process for obtaining a broker licence in Alberta is a lot like how to get your broker’s licence in most other parts of Canada – except for Québec. Typically, the licensing process here involves a rigorous examination and some eligibility requirements, some of which are not that difficult to meet.
Like other provinces except Québec, there are three distinct licensing levels for the insurance broker licence in Alberta, namely:
This is the entry-level licence that all those new to the insurance industry must acquire. A level 1 licence allows its bearer to sell property and casualty insurance, but only under supervision. There must be a level 2 or 3 licence holder overseeing the broker with a level 1 licence.
Applicants for the level 1 licence must take and complete an AIC-approved course. They must also pass the level 1 examination, which tests your knowledge of foundational principles and practices of insurance.
The level 2 licence is meant for brokers who want to work independently of a brokerage firm. This licence enables the bearer to manage clients without supervision. To obtain this licence level, applicants must have a level 1 licence and must have been practicing for at least a year. They must also pass the level 2 licensing examination.
This is also called the Designated Representative (DR) licence. The level 3 licence is for insurance brokers who want to pursue ownership or managerial roles in an insurance agency or brokerage. Prerequisites for obtaining this licence are the level 2 licence and passing a comprehensive level 3 examination.
There are minimum requirements for an aspiring broker to fulfill before getting their insurance broker licence in Alberta. To qualify for the licence, they must:
For aspiring insurance brokers in Alberta (and most other provinces except for BC), having a high school diploma or GED equivalent is the minimum educational requirement. However, recent changes have made is such that a pre-licensing course is mandatory for a broker licence application in Alberta.
Fortunately, no. This means that an aspiring insurance broker doesn’t have to worry about the cost and years involved in acquiring a degree. This is one advantage of becoming an insurance broker in Alberta.
However, pursuing a college degree before working to obtain your broker licence does have its merits. For starters, a degree can make you a more appealing candidate when applying at insurance companies. Take note that securing employment is a crucial part of getting an insurance broker licence in Alberta.
In addition, having a college degree can help you get familiar with many business, legal, and insurance terms and concepts. Remember, the insurance industry is very nuanced and is full of complex terms and industry jargon. A college degree can help you gain familiarity with these terms early and make it easier for you to understand them.
The recommended degrees you can pursue that can help you jumpstart your insurance career include:
Getting your insurance broker licence in Alby involves a series of steps amounting to a straightforward process. This process is meant to ensure that broker candidates have the necessary skills, knowledge, and ethical standards as they become part of the insurance industry. The steps for acquiring the insurance broker licence in Alberta are as follows:
As part of the General License Qualification Program (GLQP ), broker candidates must take a pre-licensing course accredited by the Alberta Insurance Council. Since sometime in 2019, the AIC made it mandatory for aspiring brokers to take an accredited pre-licensing course, like those offered by PNC Learning. These pre-licensing courses typically cover essential insurance concepts and principles, including types of insurance policies, regulations, and risk management.
After completing the course, candidates are required to present the AIC with a certificate provided by the course provider. Broker candidates must present the certificate to register for the pre-licensing exams.
Once you’ve completed an approved pre-licensing course, you can take the level 1 licensure exam. Candidates are advised to take the exam as soon as they can, since their marks have a validity of only 12 months after completing the courses.
Candidates are required to have a background check as part of the licensing process. This must be done within a maximum of three months prior to the licence application. The reason for this check is to verify the broker candidate’s integrity and determine their suitability for becoming an insurance broker in Alberta. Typically, a PDF file or copy will be required for the licence application.
Next, broker licence applicants must have a licensed insurance agency or brokerage firm to endorse their application. To do this, they must be employed by either of these entities. Without an employer willing to give their endorsement, candidates will have a difficult time getting their licence application approved.
Broker candidates may turn in their licence application to the AIC once they have the following:
All these requirements must be accompanied by the appropriate licensing fees.
After acquiring the licence, licensees are required to accumulate Continuing Education (CE) hours or credits to maintain it. This typically means earning a minimum of 15 CE credits every year. Insurance brokers can get CE courses from a variety of educational institutions and professional organizations.
For individual licence holders, these are the cost breakdowns:
Once you pass the exam and get employment, you can apply for the broker licence with the help of your employer. The AIC’s fee for new licenses and renewals is $95 but if you’re trying to change or reinstate your license, the fee is only $25.
Only if you intend to work as an independent broker. If you are applying for the Alberta broker licence as an employee of an insurer, this is not necessary.
Those who are not residents of Alberta but are licensed brokers in their province may wonder if their insurance broker licences are transferable. To date, there is no licence transferability, but there is licence equivalency. While registered non-resident brokers can always try a different insurance career in Alberta, determining if their licence can still be of value is worth the effort.
Residents of another province who hold an equivalent insurance broker licence may apply for an insurance broker licence in Alberta without having to take and pass the local exams. You are eligible to apply if:
Should you hold an insurance broker licence that has no equivalent in Alberta, you must complete the educational requirements of the Alberta licence, as well as take the appropriate exam.
Below is a list of some provinces that can have acceptable equivalent insurance broker licence qualifications:
1. British Columbia
2. Saskatchewan
3. Manitoba
4. Ontario - Financial Services Regulatory Authority (FSRA)
5. Ontario - Registered Insurance Brokers of Ontario (RIBO)
6. Québec
Note: For the complete list of insurance licence counterparts from other provinces, visit the AIC page on Alberta licence equivalencies.
Choosing to obtain your insurance broker licence in Alberta can be a good career move, whether if it’s for newcomers or those making a shift in the insurance industry. Alberta can be a terrific place to live, with its growing population and dynamic insurance market. It also helps that the broker licence here has equivalence with licences in other jurisdictions, making it easier for you to make the change.
Is this guide on how to get your insurance broker licence in Alberta helpful to you? Let us know in the comments.
