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Changes to structure of licence and application fees ahead

Rule change differentiates between individual and corporate licence fee, rebalances costs

Published February 18, 2022

Changes to a number of Insurance Council fees will be in effect for the upcoming licence year that starts June 1. This includes increases to licence and application fees, and differences in individual and corporate licences.

A notable aspect of the changes is that they introduce a revised fee structure that rebalances how regulatory oversight is funded by licensees. This follows government approval last year of amendments that modernize Council Rule 5, which sets the fees the Insurance Council may charge.

Prior to this, the Rule did not distinguish between types of licence, meaning that the cost of a licence or application for a corporate entity was the same as for an individual even though the regulatory support and oversight required for corporate entities is more complex and time consuming. Introducing a difference in individual and corporate fees more equitably redistributes the cost of industry regulation.

In April 2022, when annual licence renewal (formerly known as Annual Filing) opens, the following changes will apply:

Individual licences (all classes)
  • Individual annual licence fee: $260 
  • Late renewal fee for individual licences: $150 
Corporate licences (all classes)
  • Corporate annual licence fee: $475 
  • Late renewal fee for corporate licences: $300 
The annual licence fee was last updated in 2019. Annual licence and application fees shown include a $25 government fee.

Starting June 1, 2022,
  • Application fees for individual licences will be $275
  • Application fees for corporate licences will be $775
 
Application fees were last updated in 2008 and this change more accurately reflects the actual cost and effort of processing applications. Previously, the Insurance Council’s ability to recoup these costs was limited by the existing fee structure under Rule 5.

More information about annual licence renewal (formerly Annual Filing) will be made available on our website and by email closer to April 2022.

For information about the changes noted above, please contact info@insurancecouncilofbc.com.