The Government of British Columbia on Dec. 18 unveiled a restricted licensing framework for businesses that sell insurance products incidental to their primary activities, such as add-on insurance linked to the sale of vehicles or electronics.
The framework is designed to fill a regulatory gap between full insurance licensing and previously unregulated incidental sales, aligning BC’s approach with similar regimes in Alberta, Saskatchewan, Manitoba, and New Brunswick.
Under the Restricted Insurance Agent (RIA) License Regulation, certain businesses that were previously exempt from licensing will now be required to obtain an RIA Licence to sell specified classes of insurance. An RIA Licence allows employees or contractors of the business to sell these products without holding individual insurance licences.
Businesses required to hold an RIA Licence include construction equipment and farm implement dealerships, credit grantors, customs brokers, deposit-taking and trust institutions, motor vehicle and pleasure craft dealers, peer-to-peer vehicle service providers, portable electronics vendors, freight-forwarding and transportation companies, funeral providers, mortgage brokerages, travel agents and wholesalers, and vehicle rental agencies. Each class of business is restricted to selling particular types of insurance, such as credit protection, vehicle warranties, cargo insurance, travel insurance, and funeral services insurance.
The Insurance Council of British Columbia will administer the licensing regime and establish rules governing licence-holder obligations, with the goal of enhancing consumer protection, transparency, and responsible sales practices. Additional details about the licensing program are expected from the Council in January 2026.
The regulation comes into force on Jan. 1, 2027, with a three-month transition period ending March 31, 2027. The Council plans to begin accepting RIA Licence applications in November 2026. Businesses that wish to continue selling the permitted insurance products must hold an RIA Licence by the end of the transition period.
The framework formalizes oversight of incidental insurance sales, expanding training, transparency, and consumer protection requirements. Businesses currently relying on licensing exemptions should review the insurance products they offer and assess their obligations under the new Regulation to ensure compliance. Failure to obtain the required RIA Licence may result in non-compliance with the Financial Institutions Act and loss of authority to sell insurance products.
