How the RIA licence impacts current licensees
The introduction of the new
Restricted Insurance Agent Licence Regulation will directly affect some current insurance licence holders, namely:
- Restricted travel insurance agencies
- Insurance licences limited to specific insurance products
Restricted Travel Insurance Agencies
As the type of business and products sold by Restricted Travel Insurance Agencies are covered by the new regulation, these licensed agencies will need to transition from their current Restricted Travel Insurance Agency licence to the new Restricted Insurance Agency licence.
There will be a transition period after the regulation comes into effect during which the Insurance Council will support Travel Agencies moving to the new licence model. After December 31, 2027, the Restricted Travel Insurance Agency licence will be discontinued.
What does this change mean for current Restricted Travel Insurance Agencies?
- Current Restricted Travel Insurance Agency licensees will need to transition to the new Restricted Insurance Agency licence by December 31, 2027 in order to continue selling travel insurance.
- After December 31, 2027, the current Restricted Travel Insurance Agency licence will be discontinued.
- Travel agencies will have all the same licence requirements as other restricted insurance agency licence holders.
- The Insurance Council will reach out directly to current licence holders to provide details and support when the transition process is ready to begin.
Insurance licences limited to specific insurance products
Up until March 2021, the Insurance Council issued standard insurance licences limited to the sale of specific products. These licences are no longer being issued; however current licence holders are able to renew and maintain this licence.
With the introduction of the new regulation, there are two scenarios for these licence holders:
- The regulation includes the licensee’s business: If a current standard insurance licence holder’s primary business and type of insurance sold is covered by the new regulation, they may apply for a restricted insurance agency licence. They would then only require an agency-level licence to allow their representatives to conduct insurance sales, instead of the individual and agency licensure now required under the standard licensing model.
- The regulation does not include the licensee’s business: Where the sale of insurance is the licensee’s main business or if their main business and corresponding type of insurance product is not referred to by the regulation, they are not eligible for a Restricted Insurance Agency licence and will be able to renew and maintain their current licence.
What does this change mean for holders of licences limited to specific insurance products?
- These licensees will be able to renew and maintain their current licence.
- Some licensees are eligible to apply for the new RIA licence, while others are not. Eligibility is based on whether the licensee’s main business and insurance products sold are covered by the Restricted Insurance Agent Licence Regulation.
- We will reach out directly to current licence holders to provide more detailed information about their licence and available options at the appropriate time.