British Columbia’s restricted insurance agency (RIA) licensing framework takes effect on January 1, 2027. With the supporting Insurance Council Rules now approved, businesses selling insurance incidental to their primary activities should prepare for new licensing, training and compliance requirements.
Who requires a licence?
The Restricted Insurance Agent Licence Regulation (Regulation) covers 18 prescribed classes of non-insurance businesses and their corresponding insurance products. A separate RIA licence is required for each prescribed class in which a business offers insurance. See our December 2025 bulletin for the full list.
The Council has identified two key groups of incidental sellers that may need to obtain a licence:
- Formerly exempt businesses: Businesses that previously sold insurance products under a licensing exemption under the Insurance Licensing Exemptions Regulation may now fall within the scope of the RIA licence program and be required to obtain a licence.
- Current insurance licence holders: Non-insurance businesses that currently hold a British Columbia insurance licence may also be affected. In particular, holders of restricted travel insurance agency licences must transition to the new RIA licence, and holders of standard insurance licences limited to the sale of specific products now covered by the Regulation may choose to apply for an RIA licence or retain their current licence.
Application requirements
Applications open through the Insurance Council of British Columbia (Council) online portal on January 4, 2027. Applicants must:
- Provide business, ownership, governance and suitability information, including applicable corporate registration and municipal licensing details.
- Maintain errors and omissions (E&O) insurance covering all RIA insurance business, with at least $1 million per claim and $2 million annually in aggregate.
- Obtain written authorization from at least one insurer authorized by the BC Financial Services Authority for the insurance business covered by the licence (except for businesses offering warranty insurance guaranteed by the product or vehicle manufacturer who are exempt).
- Appoint a designated representative (DR), who must be an officer, director, partner or sole proprietor, to oversee insurance activities and compliance. The DR must complete the Insurance Council Course for Designated Representatives before licence issuance.
- Arrange Council-approved (accredited), product-specific training for every class of insurance sold, which must be completed by sales representatives before they offer the related products to consumers. Businesses may develop their own training, but must submit materials for accreditation, which will be evaluated against the RIA Performance Requirements.
Transitional licences
Businesses meeting all applicable licensing and qualification requirements, including the requirement for representatives to complete the accredited training, may apply for a standard RIA licence.
Where accredited training is not yet available, businesses meeting all other licensing qualification requirements may instead apply for a term RIA licence as a transitional measure, provided their representatives have completed non-approved insurance training that meets the RIA Performance Requirements.
Application: As part of the application process, a business applying for a term RIA licence must attest that its representatives have completed non-approved insurance training that meets the RIA Performance Requirements and that the training will be submitted for approval and accreditation.
Timing: Applications for a term RIA licence must be submitted before March 31, 2027. Term RIA licences will have a duration of up to 17 months and will expire on May 31, 2028.
Ongoing compliance
Licence holders must keep business information current, promptly report changes, remain suitable, maintain a qualified DR, insurer authorization and E&O coverage, and ensure only appropriately trained representatives sell insurance. They must also comply with the Council’s disclosure requirements, the Financial Products Disclosure Regulation and the Insurance Council Code of Conduct. Standard licences require annual renewal. Continuing education requirements are anticipated, but will not apply at launch.
Fees
The application fee is $1,000, plus an annual fee payable on issuance and renewal. Annual fees depend on the number of representatives: $650 (1–10); $800 (11–20); $1,500 (21–99); $3,000 (100–249); $5,400 (250–499); and $7,000 (500 or more), plus a $25 government fee in all cases.
Key dates
- October 26, 2026: DR course and training accreditation applications open.
- December 2026: detailed application and transition information expected.
- January 1, 2027: regulation takes effect; licence applications open January 4, 2027.
- March 31, 2027: RIA application deadline for eligible businesses who were previously exempt from licensing requirements.
- December 31, 2027: deadline for restricted travel insurance agents to transition to an RIA licence.
What businesses should do now
Assess whether your business needs an RIA licence, identify a DR, arrange E&O coverage and insurer authorization, and prepare representative training. Businesses developing their own courses should begin accreditation preparations now. Further application details are expected in December 2026, with operational guidance to follow when applications open in January 2027.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
