General Insurance Competency Framework

The Insurance Council is developing a General Insurance Competency Framework which outlines the skills required of licensees practicing as a general insurance salesperson or agent in BC. These requirements will also establish entry to practice requirements for new licensees.

On this page:

Background

What is a competency framework?

A competency framework outlines the ability, knowledge and skills required of a licensee to proficiently practice the profession. It sets the foundation for the minimum level of performance of a licensed professional and the competency expectations for each licence category.
 

How do regulators use a competency framework?

Regulatory bodies use competency frameworks to set entry-to-practice requirements that applicants must meet before being granted a licence. In the case of the Insurance Council’s General Insurance Competency Framework, the competence must also be maintained or developed throughout various licence categories.

Overview


Why is the Insurance Council developing and introducing a competency framework?

Establishing clear entry to practice expectations is a key initiative to support a standard of professionalism in British Columbia's insurance industry. Competency based standards have been used in Canada for nearly 30 years and have become common practice for regulators in a variety of disciplines.  Introducing  a competency framework supports the Insurance Council’s mandate of providing regulatory oversight that protects the public by clearly outlining the expectations of licensed insurance professionals.  
 

Who does the General Insurance Competency Framework apply to?

Once implemented, this framework will apply to any general insurance licence holders (Level 1, 2, 3 and Nominees) and applicants or candidates for a general insurance licence. The expectations, skills and requirements gradually increase with each licence category to demonstrate the increased level of responsibility within their organization and the industry as a whole.

 

Why is it important to applicants, licensees and industry representatives?

The Competency Framework is designed to:

  • Give clarity and transparency about the competencies expected for licensure—information that will be helpful for potential candidates to the industry, as well as recruiting firms.
  • Provide agencies with a clear statement of realistic expectations for performance upon initial entry as an authorized representative and allow agencies to support licensees in their learning progression.
  • Assist organizations in developing and implementing training programs for general insurance salespersons and agents.
  • Provide individuals interested in working as insurance salespersons or agents with a picture of licensing education requirements.
  • Allow licensees to reflect and benchmark their professional development.


What topics does the Competency Framework address?

The General Insurance Competency Framework contains three broad sections licensees are required to demonstrate to hold their specific licence designation.

  1. Knowledge of the insurance industry – including understanding of principles and practices, the function of the Insurance Council, and knowledge of products and services.

  2. Technical abilities – understanding of product sales, processing, and servicing, as well as the legal and regulatory requirements regarding sales and processing.

  3. Business skills – basic business acumen skills such as conduct and ethics, errors and omissions insurance coverage, communication skills, customer service, information management, planning and organization as well as leadership and supervision.  

 

Who is developing the General Insurance Competency Framework?

The Insurance Council initiated the development of the General Insurance Competency Framework by appointing a subject matter expert team comprised of staff, Council members and licensees active in the industry who drew upon their own professional experiences, as well as subject matter experts in the realm of competency frameworks.

We solicted input and collaborated with general insurance industry association and educational organizations, specifically the British Columbia Institute of Technology, the Insurance Institute of Canada, the Insurance Brokers Association of British Columbia, the Canadian Association of Managing General Agents, the Credit Union Insurance Services Association, ILS Learning Corporation and the Canadian Association of Direct Relationship Insurers, to refine the draft competency frameworks to reflect the minimum expectations of licensees.  

Progress to date

In 2022, the project team completed a draft competency framework for level 1 general insurance salespersons and presented it to Council to approve to proceed with consultation with level 1 licence holders. Council approved the initial draft of the Level 1 General Insurance Salespersons Competency Framework for consultation.
 
The Insurance Council distributed a survey to 6,800 level 1 general insurance licensees requesting feedback about the proposed Level 1 General Insurance Salespersons competency framework. The objective of the survey was to validate the outlined competencies to ensure they reflected realistic industry standards. Additional information about the competency framework and consultation was published April 2022 to the Insurance Council website.
 
Feedback from level 1 general salesperson licensees indicated overall agreement with the competencies presented, thus validating the proposed framework for level 1. Council approved the Level 1 Competency Framework on September 13, 2022. This was a key step of the development of the overall framework as it informed the development of the remaining licence categories. 
 
Since the approval of the level 1 competencies, the Insurance Council developed the remaining licence categories for level 2, 3, and nominee. In April of 2023 subject matter experts and industry stakeholders participated in a two-day workshop to review the proposed level 2, 3 and nominee frameworks and refine the frameworks where appropriate. 

Following the workshop, the Insurance Council conducted consultation with level 2, 3 and nominee General insurance licensees from May 21 - June 11, 2024. Each licensee received an email explaining the initative and inviting them to participate in an online survey.     

Current status

Consultation to validate the level 2, 3 and nominee General Insurance Competency Framework is now closed.

The Insurance Council will review the information provided and ensure general insurance professionals’ opinions are considered in establishing realistic competency qualifications for industry.

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Contact us


If you have questions about the development of the General Insurance Competency Framework, contact us at licensing@insurancecouncilofbc.com

Next steps

Input received for the frameworks will be considered by the working group and the the final draft Competency Frameworks for Level 2, 3 and Nominee General Insurance will be presented to Council for approval. We anticipate  the General Insurance Competency Framework will be finalized in Spring 2025 and fully effective by Spring 2026.