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Restricted Insurance Agency Licence


To protect the public and increase consumer confidence, the BC government is requiring that certain non-insurance businesses become licensed to sell insurance products.

In 2019, the BC government enacted changes to the Financial Institutions Act to enable the introduction of a licensing regime for incidental sales of insurance—insurance sales carried out by non-insurance businesses.  

In BC, insurance products are commonly offered in addition to the sale of consumer goods and services.  Many of these point-of-purchase insurance sales by non-insurance businesses have not previously been subject to regulatory oversight. 

On January 1, 2027 the Restricted Insurance Agent Licence Regulation will come into effect. The new regulation outlines the businesses that will require a restricted insurance agency licence in order to sell the insurance products named in the regulation. Sales of these products had previously been exempt from licensure under the Insurance Licensing Exemptions Regulation. 
What is the Insurance Council's role?
The Province has tasked the Insurance Council of BC with creating a regulatory framework for issuing and overseeing this new Restricted Insurance Agency (RIA) licence. The proposed licence program will go through consultation and a legislative rule-making process before we can start issuing licences. We expect to launch the licence program and start accepting applications for this licence in November 2026. 
 
Development process for licence framework:

Learn more about how the licence program will be developed and implemented.

about licence implementation

On this page:
RIA Licence
An overview of the Restricted Insurance Agency (RIA) licence, which will apply to certain non-insurance businesses in BC starting January 1, 2027. The RIA licence strengthens consumer protection by introducing clear requirements, consistent oversight, and greater transparency when insurance is offered alongside other products or services.
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What is a Restricted Insurance Agency Licence?

In BC, the sale of insurance as an agency's usual business activity requires both the agency and individuals selling insurance to be licensed. Standard licensure for general, life or accident & sickness insurance allows the sale of all types of products within these broad classes of insurance.

Starting in March 31, 2027, certain types of companies or organizations that sell insurance products in addition to their usual business will need to have applied for a restricted insurance agency licence, issued by the Insurance Council. This restricted insurance agency licence will allow companies/organizations to sell specific types of insurance through its employees or contractors, who will not need to hold their own individual licences.

The BC Restricted Insurance Agent Licence Regulation outlines which types of businesses will require a licence, and which types of insurance they can sell.

 

Standard licensing model for insurance sales (shown on left) vs. licensing model for incidental sales of insurance.


See more information about the proposed licence framework currently under development and getting a licence. 

About the proposed licence program

Which businesses need a licence?

A restricted insurance agency licence permits a vendor to conduct incidental sales of insurance—insurance that is sold in addition to a vendor’s usual business. The BC Restricted Insurance Agent Licence Regulation identifies the types of businesses, known as "prescribed classes of persons" in the regulation, that will require a restricted insurance agency licence in order to sell the corresponding insurance products listed in the regulations.

 
Type of business ("class of persons")
Classes of insurance
Construction equipment dealerships Credit protection insurance
Construction equipment warranty insurance
Guaranteed asset protection insurance
Credit grantors Credit protection insurance
Customs brokers Cargo insurance
Deposit-taking institutions Credit protection insurance
Extraprovincial trust corporations Credit protection insurance
Farm implement dealerships Credit protection insurance
Farm implement warranty insurance
Guaranteed asset protection insurance
Freight-forwarding companies Cargo insurance
Funeral providers Funeral services insurance
Mortgage brokerages Credit protection insurance
Motor vehicle dealers Credit protection insurance
Guaranteed asset protection insurance
Vehicle warranty insurance
Peer-to-peer vehicle service providers Rented vehicle insurance
Pleasure craft dealerships Credit protection insurance
Guaranteed asset protection insurance
Pleasure craft warranty insurance
Portable electronic vendors Portable electronics insurance
Transportation companies Cargo insurance
Travel insurance
Travel agents Rented vehicle insurance
Travel insurance
Travel wholesalers Rented vehicle insurance
Travel insurance
Trust companies Credit protection insurance
Vehicle rental agencies Rented vehicle insurance

Soon after the regulation takes effect, the above listed businesses that are selling corresponding insurance products must have applied for a restricted insurance agency licence to continue these sales. Unlicensed sales will be considered non-compliant with the Financial Institutions Act and may be subject to enforcement.
Who is impacted?
By March 31, 2027, classes of businesses identified in the regulation wanting to conduct incidental sales of insurance must have applied for a restricted insurance agency licence.

The Restricted Insurance Agent Licence Regulation has implications for incidental sellers of insurance that don’t currently have a BC insurance licence, and two groups of current insurance licence holders:

Non-licensees
  • Those businesses selling insurance previously exempt under the Insurance Licensing Exemptions Regulation, and now included in the Restricted Insurance Agent Licence Regulation (see list above).
These businesses will need a restricted insurance agency licence to sell insurance included in the regulation.  

Currently licensed
  • Those with restricted travel insurance agency licences
  • Those with standard insurance licences limited to the sale of products now covered by the new regulation.
Some current licence holders that are eligible for a restricted insurance agency licence will need to transition to the new licence.

Licence holders that are not eligible for a restricted insurance agency licence will be able to renew and maintain their current licence. See link for more information on impacts to current licensees.

When does the licence regime start? How soon will I need a licence?

It will take roughly one year to put in place the licensing program that will enable us to issue restricted insurance agency licences. We anticipate accepting applications for the restricted insurance agency (RIA) licence starting November 2026, in advance of the January 1, 2027 effective date.

As of January 1, 2027, businesses identified in the regulation that want to start offering types of insurance permitted by the regulation must have a restricted insurance agency licence. 

Businesses that have been conducting incidental sales of insurance under the previous exemptions will need to submit an application for the new restricted insurance agency licence by March 31, 2027, in order to continue to sell insurance.

Current restricted travel insurance holders will have until December 31, 2027, to transition to the new licence.


More about getting licensed

Learn more:

RIA licence implementation

Link

Getting a RIA licence

Link