Becoming An Auto Insurance Broker In Ontario: A Guide

Becoming an auto insurance broker in Ontario requires passing the Registered Insurance Brokers of Ontario (RIBO) exam, which assesses knowledge of insurance products, regulations, and ethics. Candidates must also meet educational requirements, including a high school diploma, and gain practical work experience within a year of passing the exam. The process involves applying for a broker's license, completing a background check, and engaging in ongoing professional development to maintain the license. It is a rewarding career, offering competitive salaries and commissions, but staying updated with insurance rules and regulations is essential for providing accurate advice and excellent customer service.

Research the licensing requirements set by the Financial Services Regulatory Authority of Ontario (FSRA)

To become an auto insurance broker in Ontario, you must understand the licensing requirements set by the Financial Services Regulatory Authority of Ontario (FSRA). The FSRA is an agency of the Government of Ontario that protects the rights of consumers in the province by promoting high standards of business conduct and transparency within the financial services sector.

The FSRA's role in licensing is to ensure that individuals and businesses meet the qualifications for a licence, are suitable to be licensed, and comply with all ongoing licensing requirements. To sell auto insurance in Ontario, you must apply for a general agent licence with the FSRA. This licence also covers property and casualty insurance.

To obtain this licence, you must be sponsored by a licensed insurer at all times. Your sponsoring insurer will manage your application process and confirm that you meet all licensing requirements. As the agent, you are responsible for maintaining your licence.

The fee for a new general agent licence application is $150, which covers the first two years of your licence. Depending on your arrangement with your sponsoring insurer, they may pay this fee, or you may be responsible for it.

Before you apply for a general licence, you must successfully complete the OTL (Other Than Life) Agent's Exam from the Insurance Institute. The Insurance Institute offers virtual classes and study kits to help you prepare for the exam. Once you pass the OTL exam, you have up to one year to apply for your general agent licence.

If you have a Chartered Insurance Professional (CIP) designation in good standing or you've passed the equivalent Registered Insurance Brokers of Ontario (RIBO) exam, you can bypass the education requirement and apply directly for the general licence.

In addition to the education requirement, there are several other prerequisites you must meet to be eligible for a general agent licence. These include:

• Having an Ontario mailing address that can receive registered mail (not a PO box)
• Having a personal email address that FSRA can use to contact you
• Being suitable to hold a licence, which includes confirming that:
• You are familiar with the laws of Ontario relating to the licensing of general agents
• You will carry out business in good faith as a general agent in the name in which you are licensed
• You are not engaged in any other business or occupation that would jeopardize your integrity, independence or competence
• You are of good character and reputation
• You have provided information about bankruptcies, lawsuits, criminal records, decisions from other regulators or licensing bodies, and other relevant employment information
• You have successfully completed the OTL exam
• You have passed a criminal background check

Complete a specific insurance broker course and training

To become an insurance broker in Ontario, you must complete a specific insurance broker course and training. The Insurance Brokers Association of Ontario (IBAO) offers courses that cover the required curriculum. These courses will provide you with the knowledge and skills necessary to advise clients on their insurance needs effectively.

The IBAO offers several prep courses to help you prepare for the Level 1 RIBO examination, including:

• Broker LaunchPad On Demand: A self-paced study option.
• Broker LaunchPad Weekday Program: This program has the highest success rate of all the preparation methods.
• Broker LaunchPad Weekend Program: Designed for those who work full-time and need a more flexible option.
• Exam Clinic: Suitable for those who have previously taken the exam and want to retake it.

In addition to these prep courses, you may also consider enrolling in a one-year certificate program or a two-year business insurance program offered at Ontario colleges. These programs will provide you with technical practices, customer service skills, and industry-specific knowledge in insurance-related courses.

It is important to note that while there is only one required course to become an insurance broker in Ontario, additional courses and education can deepen your knowledge and enhance your expertise in the field. The Chartered Insurance Professional (CIP) designation, offered by the Insurance Institute of Canada, is an example of further education that can benefit your career as an insurance broker.

Pass the Registered Insurance Brokers of Ontario (RIBO) exam

Passing the Registered Insurance Brokers of Ontario (RIBO) exam is a crucial step to becoming an insurance broker in Ontario. The RIBO exam assesses your knowledge of insurance products, regulations, and ethics. Here are some detailed instructions to help you prepare for and pass the exam:

• Enroll in a preparatory course: There are several preparatory courses available to help you study for the RIBO exam. These include the Broker LaunchPad On Demand program, which allows you to study at your own pace, the Broker LaunchPad Weekday Program, which has the highest success rate, and the Broker LaunchPad Weekend Program, which is suitable for those who work full time.
• Familiarize yourself with insurance products: Gain a thorough understanding of various insurance products such as auto, home, life, and health insurance. Know the coverage options, policy terms, and exclusions for each type of insurance.
• Stay updated on insurance regulations: Keep yourself informed about the insurance regulations set by the Financial Services Regulatory Authority of Ontario (FSRA). Understand the licensing requirements, consumer protection measures, and compliance obligations for insurance brokers.
• Understand risk management: Learn the principles of risk management and how insurance helps mitigate risks for individuals and businesses. Develop your ability to evaluate and analyze risks and recommend appropriate insurance coverage.
• Enhance your communication skills: Effective communication is essential in explaining insurance policies, terms, and conditions to clients. Practice simplifying complex concepts and building trust with clients.
• Study ethical practices: Adhere to high ethical standards and understand the importance of confidentiality, honesty, and transparency in maintaining client trust. As an insurance broker, you have a fiduciary duty to provide unbiased advice and act in your client's best interest.
• Practice with sample questions: Familiarize yourself with the types of questions asked on the RIBO exam by attempting practice exams and quizzes. This will help you identify areas you need to focus on and improve your understanding of the material.
• Manage your time effectively: Ensure you allow yourself enough time to study for the exam. If you're working full time, consider enrolling in a weekend program or choosing a self-paced study option.

By following these steps and dedicating yourself to the process, you'll be well-prepared to pass the RIBO exam and take a crucial step towards becoming a successful insurance broker in Ontario.

Gain practical work experience within one year of passing the exam

Once you have passed the Registered Insurance Brokers of Ontario (RIBO) exam, you will need to gain practical work experience within a year to become a licensed insurance broker in Ontario. This can be achieved by applying for employment as an insurance broker.

Some brokerages will cover the costs of the exam if they believe you are a good candidate. Once you have passed the exam, you can start applying for jobs. You can search online and review job search websites to find available positions. It is important to highlight your qualifications on your resume and cover letter to convey that you are qualified for the role. You can also research the company and include keywords from the job description in your application.

As an insurance broker, you will act as an intermediary between clients seeking insurance coverage and insurance companies offering policies. Your responsibilities will include assessing your clients' insurance requirements, understanding their specific risks, and determining appropriate coverage options. You will also need to stay updated on insurance regulations and market trends to provide valuable insights and advice to your clients.

Gaining practical work experience will allow you to apply your knowledge and skills in a real-world setting and deepen your understanding of the insurance process. It will also help you build relationships with clients and gain a better understanding of their needs and concerns.

Apply for your insurance broker license through the FSRA

To apply for your insurance broker license through the Financial Services Regulatory Authority of Ontario (FSRA), you must meet the necessary educational and experience requirements. The application process typically involves several steps, so here is a detailed breakdown:

Application Form and Requirements:

Firstly, you need to submit an application form, which can be done through the FSRA's Licensing Link Portal. This portal allows you to apply for or renew your license online. The form will require you to provide personal information, including your contact details and qualifications.

Proof of Education and Experience:

Along with your application, you must provide evidence of your education and work experience. To become a licensed insurance broker, you need to have completed a specific insurance broker course and gained practical work experience within one year of passing the Registered Insurance Brokers of Ontario (RIBO) exam.

Payment of Fees:

There are fees associated with applying for an insurance broker license. The cost for a new general agent license is $150, which covers the first two years of your license. You may be responsible for paying this fee or your sponsoring insurer might cover it, so be sure to check with them.

Background Check:

As part of the licensing process, the FSRA will conduct a background check to ensure your suitability for a license. This includes a criminal record check, which can be done through the FSRA's approved vendor, Triton Canada (Triton). The background check costs $19.15 and is valid for 90 days.

Application Processing:

Once you have submitted your application, the FSRA will review it. For most applications, it takes about 10 business days for the FSRA to issue your license. You can check the status of your application through the Licensing Link Portal.

License Approval and Issuance:

If your application is approved, you will be able to view and print your license from the Licensing Link Portal. It is important to check the expiration date of your license and renew it when necessary to ensure it remains valid.

By following these steps and meeting the requirements, you can successfully apply for your insurance broker license through the FSRA and begin your career as a licensed insurance broker in Ontario.

Frequently asked questions