Update on restricted licence for incidental insurance sales

Published April 11, 2024

Once brought into force through provincial regulations, amendments to the Financial Institutions Act made in 2019 will introduce a requirement for some types of businesses to have a restricted insurance agency licence to sell insurance where it is incidental to their primary business. The Insurance Council has been tasked by the provincial government with implementing this new restricted insurance agency licence and has recently published updated information about the development of the licence framework. 

Key highlights of the updates include:

• An overview of the key elements of the licence framework
• Potential impacts and what industries and businesses can expect
• The next steps in the regime’s development.

The BC government is currently drafting the regulations required to bring the legislation into force. It is not yet known which types of businesses will be included in the licensing regime; these will be outlined in the regulations when published.  A 2022 consultation paper identified a variety of businesses and products being considered for inclusion and can be found on the Province’s website. Current holders of insurance licences limited to the sale of specific products or restricted travel insurance licences should be aware that there may be impacts for them should those products be included in the regulations. 

Following the publication of the regulations, the Insurance Council anticipates it will take roughly one year to develop and put in place the restricted insurance agency licensing framework, enabling the new licence to be issued.  

More information about the restricted insurance agency licence and updates on the development of the licence framework can be found on the website: insurancecouncilofbc.com/RIA.