Seasoned insurance professionals who have earned Levels 1 and 2 insurance licences may experience a sort of career existential crisis. Now that you’ve reached expert levels of insurance competence, knowledge, and skill, where do you go from there? Where else but to the very top – acquiring the Level 3 insurance licence.
The pinnacle of insurance licences in Canada, anyone with this credential is someone who has advanced knowledge, including managerial skills and competence within the insurance industry. Given this, should an insurance professional in Canada pursue the Level 3 licence?
In this article, Insurance Business delves into the intricacies of getting the Level 3 insurance licence in Canada. We’ll discuss important topics like the licensing requirements, the licensure tests involved, whether you can get the insurance licence online, and more.
The level 3 insurance licence is what gives experienced brokers the knowledge and authority to act as managers or owner-operators of a brokerage firm. The main prerequisite for this licence is the technical insurance knowledge of a Level 2 licensed insurance broker.
A Level 3 insurance license in Canada is designed for insurance professionals (specifically brokers) aspiring to leadership and management roles within an insurance brokerage. This is especially true for residents of British Columbia.
The Level 3 licence is proof that an individual possesses advanced knowledge and skills in insurance and the insurance industry. This licence is an essential prerequisite for managing or owning a brokerage firm in Canada.
Insurance brokers in Canada must obtain the Level 3 licence to hold key leadership and management roles within an insurance brokerage. The requirements to obtain this license varies by province, but generally includes completing specific courses, passing an exam, and meeting work experience criteria.
Here's a step-by-step guide to help you through the process:
The requirements for getting this licence vary by province and are managed at the local level. A good general first step regardless of your location is to confirm with your provincial regulatory authority what these requirements are.
These are the regulatory bodies for each province or territory that you can consult:
|
Province or territory |
Regulatory authorities |
|---|---|
|
Alberta Insurance Council (AIC) |
|
|
Insurance Council of British Columbia (ICBC) |
|
|
Insurance Council of Manitoba (ICM) |
|
|
Financial and Consumer Services Commission (FCNB) |
|
|
Service NL |
|
|
Superintendent of Insurance |
|
|
Office of the Superintendent of Insurance |
|
|
Superintendent of Insurance |
|
|
Ontario |
Financial Services Regulatory Authority of Ontario (FSRA), Registered Insurance Brokers of Ontario (RIBO) |
|
Office of the Superintendent of Insurance |
|
|
Autorité des marchés financiers (AMF) |
|
|
Insurance Councils of Saskatchewan |
|
|
Office of the Superintendent of Insurance |
Before attempting to get the Level 3 insurance licence, be sure to have the necessary prerequisites. These typically include:
The Level 2 insurance licence – most provinces require aspiring Level 3 candidates hold the Level 2 licence for at least two years in the three years prior to applying for this licence
Work experience – most provincial regulators require those pursuing the Level 3 have at least two years of relevant experience
Background check – most provinces require that aspiring licensees obtain a criminal background check from the local police or RCMP detachment
Educational experience – at this level, it is expected that candidates have the education required. It is simply not possible to obtain the Level 1 general insurance or Level 2 licences without the right education, and these licences are essential to progress through to Level 3 licensing
Successful completion of the licensing courses required by the relevant regulatory authorities is essential for obtaining the Level 3 insurance licence.
Note that these can vary from province to province and have courses that can cover a range of differing topics. Here are some examples:
This province requires that candidates get a self-study kit that complies with the Alberta Insurance Council's exam, including C132. They must then complete C11, C130, C131, and C132 courses from the Insurance Institute of Canada. As an alternative pathway, candidates who hold the Chartered Insurance Professional (CIP) or Canadian Accredited Insurance Broker (CAIB) designation may skip these courses and apply for the licence.
Find out how to get your insurance broker licence in Alberta in this guide.
In BC, major changes for Level 3 licensure were made as of September 30, 2024. In the past, completing the Level 1 licensing (GIE) course and three courses from the CIP designation program or four courses from the Insurance Institute of Canada’s (IIC) CIP designation program made up Level 3 licensing.
Now, only the Insurance Council of British Columbia’s Supervision Course for General Insurance Agents is needed to meet part of the qualification requirements. However, applicants must still need to be licenced for five of the last seven years, with a minimum of three years as a Level 2 general insurance agent.
Here’s a step-by-step guide on how to obtain your insurance broker licence in British Columbia.
In Ontario, candidates must pass the Level 3 – Management or Level 3 – Accelerated Management (AME) exam. For those who are non-RIBO license holders, they are also required to take the RIBO Ontario Automobile Equivalency Exam.
Check out this guide if you want to know how to become an insurance broker in Ontario.
After completing the courses, register for the Level 3 exam in your province.
Once you’ve completed all the required courses, it's time to take and pass the exam. Level 3 exams can go by different names and vary slightly in content across provinces or territories. The passing grades can range from 60 percent to 75 percent. Here are a few notable examples of the Level 3 tests and their passing grades:
Once you pass the exam, you may proceed with your Level 3 licence application. This is typically done via your province’s regulatory authority. Oftentimes, this can be done online.
Be sure to include all the necessary documents, such as a government-issued ID with a clear photo and your qualifying course and exam results. You must also pay the appropriate application fees.
Generally, Level 3 insurance licence aspirants are expected to have considerable work experience in the insurance industry by some regulatory authorities. For instance, Ontario requires a minimum of two years of cumulative work experience for licensed insurance brokers when applying for a RIBO Level 3 License.
In most cases, you will have to maintain your Level 3 insurance licence by fulfilling the Continuing Education (CE) requirement every year. This usually means earning a certain number of credits from CE courses. The CE requirement is intended to ensure that licensed brokers remain up to date with industry trends and regulatory changes.
The CE requirement can vary across provinces and territories. For instance:
In BC, licensees are required to complete eight CE credits, regardless of how many years they are licensed or their additional professional designations.
Alberta requires licensees to earn 15 hours of CE credits to be able to renew their licenses yearly.
Level 1, Level 2, and Level 3 insurance licensees in Saskatchewan must complete 12 credit hours of CE per year, unless they have at least 25 years of experience in the general insurance industry or hold a CAIB, CPIB, or CCIB designation — in this case, they need only earn eight hours of CE credits yearly.
