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On December 18, 2025, the Government of British Columbia announced a new restricted licencing framework for businesses that sell incidental or add-on insurance products, with the framework taking effect on January 1, 2027. This framework builds on the existing framework that applies to travel agencies that sell travel insurance, and aligns British Columbia with similar regimes in the provinces of Alberta, Saskatchewan, Manitoba, and New Brunswick.
Under this framework, The Insurance Council of British Columbia ("ICBC")has announced that the Restricted Insurance Agency ("RIA") licence will apply to the sale of insurance products that are offered by certain non‑insurance businesses, incidentally to the sale of the product or service that will be insured.
Businesses eligible for an RIA licence are:
- Construction equipment dealers
- Credit grantors
- Customs brokers
- Deposit-taking institutions
- Extra-provincial trust companies
- Farm implement dealerships
- Freight forwarding companies
- Funeral providers
- Mortgage brokers
- Motor vehicle dealers
- Peer-to-peer vehicle service providers
- Pleasure craft dealerships
- Portable electronic vendors
- Transportation companies
Notably, some businesses that were previously exempt from licencing requirements for incidental sales of insurance will need to obtain an RIA licence, while others with existing limited licences may transition to the new framework.
To qualify for an RIA licence, and consistent with the requirements of unrestricted insurance distribution licences, a business must provide:
- business details, such as ownership and corporate registration details, and details on bankruptcy, regulatory discipline or criminal conviction;
- evidence of Errors and Omissions ("E&O") insurance;
- a minimum of one contract with an insurer authorized to do business in BC ("Insurance Contracts"), authorizing the business to distribute insurance policies of that insurer; and
- the name of the designated representative (who will be an officer, director, partner, or sole proprietor of the entity and who has completed the ICBC course for designated representatives) who will be the ICBC contact person, and who will be responsible for overseeing the agency's regulatory compliance and its insurance activity.
Sales representatives of licence holders will be required to be trained to provide consumers with clear and accurate information prior to the insurance purchase decision, including:
- that insurance is optional and may be obtainable from a different source;
- whether the customer may cancel the insurance contract;
- the amount of the sales commission, if the commission exceeds 30% of the price of the insurance;
- that the customer is purchasing the insurance from (i.e., contracting with) the insurer, rather than the RIA; and
- if applicable, whether the insurance amount is less than the value of the underlying loan, or the duration of the insurance coverage is shorter than the duration of the underlying loan.
RIA sales representatives would be required, at minimum, to complete applicable coursework on the RIA's insurance products. The course will need to be accredited by the ICBC. Accreditation standards have not yet been released, though the ICBC will generally evaluate proposed courses to ensure alignment with the following baseline competency requirements:
- knowledge of insurance (concepts, terminology, products, and services);
- technical abilities (sales, processing, and servicing, including legal and regulatory requirements); and
- business skills (ethics and professional conduct, errors and omissions, information management and record keeping).
A licenced RIA will be subject to ongoing licence requirements. The ICBC will administer the licencing process and develop rules applicable to RIA licenceholder responsibilities, including licencing requirements (potentially ongoing continuing education and training requirements), qualifications and oversight roles for designated representatives who provide oversight and compliance, and core competencies and training standards. RIAs must notify the ICBC if the position of designated representative becomes vacant, ensure that sales representatives complete an accredited course (as noted above), comply with disclosure requirements for insurance transactions noted above, maintain E&O insurance, and continue to hold one or more Insurance Contracts.
The Restricted Insurance Agent Licence Regulation comes into effect Jan. 1, 2027, with a three-month transition period until March 31, 2027. It is expected that the application process will open in November 2026. While the above-noted requirements have not yet been finalized, organizations which will be subject to the RIA regime may begin at any time to take steps towards compliance, including identifying a designated representative, procure E&O insurance, work with insurance markets to enter into Insurance Contracts, and begin to develop courses for sales representatives (potentially with insurers).
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