BC Restricted Insurance Agency (RIA) Licence: Plain-Language Guide for 2027
The short answer
Starting January 1, 2027, many BC businesses that sell insurance alongside their main product or service will need a Restricted Insurance Agency (RIA) licence from the Insurance Council of BC. This includes car dealerships, travel agents, electronics retailers, funeral providers, vehicle rental agencies and 13 other business types.
Businesses already selling these products under the old exemptions must apply by March 31, 2027 to keep selling. Every employee who sells the insurance must complete training accredited by the Insurance Council.
What is the RIA licence?
The RIA licence is a business-level licence for "incidental" insurance sales: insurance sold by a business whose main activity is not insurance. Examples include an extended warranty at a car dealership, travel insurance at a travel agency, or device protection at an electronics store.
Under a standard BC insurance licence, both the agency and each salesperson must be individually licensed. Under the RIA model, the business holds the licence, and its trained employees or contractors sell under it without their own individual licences.
BC amended the Financial Institutions Act in 2019 to allow this regime. The Restricted Insurance Agent Licence Regulation was published on December 18, 2025. Many of these point-of-sale insurance sales were previously exempt and had no regulatory oversight. The new licence adds training standards, disclosure rules and Insurance Council supervision, and aligns BC with Alberta, Saskatchewan, Manitoba and New Brunswick.
Which businesses need an RIA licence?
The regulation names 18 business types. Each may sell only the insurance classes listed beside it. Source: Insurance Council of BC.
| Business type | Insurance it may sell |
|---|---|
| Construction equipment dealerships | Credit protection; construction equipment warranty; guaranteed asset protection (GAP) |
| Credit grantors | Credit protection |
| Customs brokers | Cargo |
| Deposit-taking institutions | Credit protection |
| Extraprovincial trust corporations | Credit protection |
| Farm implement dealerships | Credit protection; farm implement warranty; GAP |
| Freight-forwarding companies | Cargo |
| Funeral providers | Funeral services |
| Mortgage brokerages | Credit protection |
| Motor vehicle dealers | Credit protection; GAP; vehicle warranty |
| Peer-to-peer vehicle service providers | Rented vehicle |
| Pleasure craft dealerships | Credit protection; GAP; pleasure craft warranty |
| Portable electronic vendors | Portable electronics |
| Transportation companies | Cargo; travel |
| Travel agents | Rented vehicle; travel |
| Travel wholesalers | Rented vehicle; travel |
| Trust companies | Credit protection |
| Vehicle rental agencies | Rented vehicle |
If your business is not on this list, the RIA licence does not apply. Selling other types of insurance still requires a standard Insurance Council licence.
Key dates
The deadline most current sellers need is March 31, 2027. Dates marked "expected" depend on ministerial approval of the Insurance Council's Rules.
| Date | What happens | Who it affects |
|---|---|---|
| December 18, 2025 | Regulation published | All |
| Fall 2026 (expected) | Insurance Council opens accreditation applications for RIA training | Training providers |
| January 1, 2027 | Regulation takes effect; Insurance Council expected to accept RIA licence applications from this date onward, once its Rules are approved | New sellers must be licensed before starting sales |
| March 31, 2027 | Deadline to apply to keep selling | Businesses selling under the old exemptions |
| December 31, 2027 | Deadline to transition to the RIA licence | Current restricted travel insurance licensees |
The Insurance Council has said accredited training may not be available for every insurance class by January 1, 2027. A short-term provision will let businesses that meet all other requirements keep selling while their representatives complete training as it becomes available.
What a business needs to qualify
Under the proposed licence program, a business applying for an RIA licence must provide:
- Business information: contact details, ownership, corporate registration, and disclosure of anything affecting suitability (bankruptcy, regulatory discipline, criminal convictions)
- Proof of errors and omissions (E&O) insurance
- At least one contract with an insurer authorized to do business in BC
- A designated representative (see next section)
To keep the licence, the business must renew it every year and maintain all of the above. It must also make sure every sales representative completes accredited training and meets the disclosure rules on every sale.
The licence will carry an annual fee, plus one-time application and designated representative course fees. The Insurance Council has not yet published the amounts.
The designated representative
Every RIA licensee must appoint one designated representative (DR). The DR must be an officer, director or partner of the business, or the sole proprietor.
The DR is the business's contact with the Insurance Council. They oversee its regulatory compliance and all of its insurance activities. The DR must also complete the Insurance Council's own course for designated representatives. If the business loses its DR, it must notify the Insurance Council.
Accredited training for sales staff
No employee may offer insurance on the business's behalf until they complete training on the products they sell. Any provider can offer this training, but the Insurance Council must accredit it. Accreditation lasts four years.
Accredited courses must cover the Insurance Council's performance requirements in three areas:
Knowledge of insurance
- Basic insurance concepts and terminology
- Insurance products and services
Technical abilities
- Product sales, processing and servicing
- Legal and regulatory requirements affecting sales and processing
Business skills
- Professional conduct and ethics
- Errors and omissions
- Information management and record keeping
Continuing education is not required at launch. The Insurance Council expects to add some form of it later and will give notice in advance. Accredited courses will be listed on the Insurance Council's website as they are approved.
What sales staff must tell customers
Representatives are expected to give each buyer these disclosures in writing:
- Buying the insurance is optional
- There may be other sources of coverage
- Whether the buyer can cancel the insurance contract
- The insurer's contact information
- The commission amount, if it is more than 30% of the price of the insurance
- The buyer will receive a copy of the coverage information
- The buyer's contract is with the insurer, not the business
- Where it applies, that the insurance amount is less than the loan value, or the coverage period is shorter than the loan term
If you already hold a BC insurance licence
Most Insurance Council licensees are not affected, because insurance is their main business.
Two groups are affected. Restricted travel insurance licensees must move to the RIA licence by December 31, 2027; the Insurance Council will contact them directly with a streamlined process. Businesses holding a standard licence limited to products now covered by the regulation may also need to transition.
Licensees who are not eligible for the RIA licence can renew and keep their current licence.
What to do now
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Frequently asked questions
Do my car dealership's salespeople need an insurance licence to sell extended warranties in BC?
Not individually. From January 1, 2027, the dealership needs a Restricted Insurance Agency licence, and each salesperson must complete accredited training before selling credit protection, GAP or vehicle warranty insurance.
When do I need to apply for an RIA licence?
If you already sell covered insurance under the old exemptions, apply by March 31, 2027. If you want to start selling after January 1, 2027, you need the licence first.
Do employees need their own insurance licence under the RIA framework?
No. The business holds the licence. Employees sell under it once they finish accredited training on the products they sell.
What happens if a business sells without an RIA licence?
The Insurance Council treats unlicensed sales as non-compliant with the Financial Institutions Act, and they may be subject to enforcement.
Who can provide RIA training?
Any training provider, including insurers, industry associations or the business itself. The course must be accredited by the Insurance Council of BC.
How much does an RIA licence cost?
The Insurance Council has not published fees yet. There will be an annual licence fee and one-time fees for the application and the designated representative course.
Is there continuing education for RIA sales staff?
Not at launch. The Insurance Council expects to introduce some form of continuing education later.
RIA training from ILScorp
ILScorp's BC RIA Training Program is built to the Insurance Council's performance requirements. It has six core modules mapped to the three competency areas, plus nine industry modules for specific business types.
For current accreditation and enrolment information, explore the RIA Training Program or contact ILScorp.
Official sources
- Restricted Insurance Agency Licence — Insurance Council of BC
- Getting a Restricted Insurance Agency Licence — Insurance Council of BC
- Accredited Training for RIA Representatives — Insurance Council of BC
- Restricted Insurance Agent Licence Regulation — BC Laws
This guide summarizes the framework as published by the Insurance Council. It is not legal advice. Details may change as the Rules receive final approval.
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