Insurance Council of BC eyeing licensing scheme for ‘incidental selling of insurance’
Insurance Council of BC eyeing licensing scheme for ‘incidental selling of insurance’ | Insurance Business Canada
Insurance News
Insurance Council of BC eyeing licensing scheme for ‘incidental selling of insurance’
Council is ‘refocusing’ approach to public protection
Insurance News
By
Gia Snape
The Insurance Council of British Columbia (ICBC) is making a strong push towards structuring a new licensing regime that enables the “incidental selling of insurance,” according to CEO Janet Sinclair.
“There are certain industries where you can buy a primary product and be offered insurance alongside it, and it’s not right those industries are exempt from having to have a license,” Sinclair told Insurance Business.
“The government is changing the legislation to add a little more structure and will be requiring licensure in the near future, so they’ve tasked us with making sure that we oversee those sales through a licensed agency.”
The insurance council will engage with stakeholders and related government agencies, such as the BC Financial Services Authority, to create the regime, Sinclair added. But the industries set for licensing have yet to be revealed by the British Columbia government.
“Some of the ones that government put forward in a recent consultation include travel agents that sell travel insurance or car dealers that offer credit insurance when you take out a loan on your car, and so on,” the CEO said. “Those would be the entities that the government is considering whether or not should be licensed.”
ICBC reveals three-year strategic plan
The effort is part of the regulator’s three-year strategic plan, as it seeks a “refocused” approach to safeguarding British Columbians and making sure their insurance needs are met.
Mandated to ensure licensed insurance agents, salespersons, and adjusters act within a professional framework, the council’s new three-year plan includes four overarching goals:
To implement effective regulatory practices that meet international standards
To provide regulatory oversight that protects consumers and enables industry innovation
To create strategic engagement that enhances public protection
To provide efficient and fair access to its services
“Our main goal is to keep the public protected. That’s our North Star every day,” Sinclair said. “But we’ve been refocusing our approach over the last few years to making sure we’re licensing the right people who are qualified to do what they should, and who have the values and ethics one would expect of an insurance advisor.”
Stronger support for licensees
The insurance council is also intensifying its efforts to support successful licensees, including “best-practice” audits to assess insurance agents’ business and make recommendations for improvement.
The audits also help the regulator distinguish between agents who need more resources and agents who are deliberately engaging in egregious conduct.
“We want to make sure we put guidance in place, and that we have people that licensees can reach out and talk to if they have questions about the appropriate course of action,” Sinclair said.
Meeting international regulatory standards
Sinclair emphasized their mission to align the ICBC’s regulatory practices, policies, and disciplinary processes with current and emerging international standards, particularly as Canadian businesses become increasingly global.
“Many of our licensees practice beyond British Columbia because they often will have licenses across the country, and even in other countries besides Canada,” Sinclair said. “By understanding international standards, we can make sure that British Columbians don’t expect less than what other professionals in other countries receive.”
Improved regulatory oversight also allows the ICBC to encourage and support innovation among insurance businesses while protecting policyholders. This includes more oversight for distribution systems that leverage cutting-edge technology such as AI.
“We need to have appropriate oversight and regulations in place, but not so much that we stifle that innovation because the public appreciates that the industry is advancing,” said Sinclair.
Message for agents and brokers
As the Insurance Council of BC seeks to strengthen its oversight and support for insurance distribution systems, its chief executive issued a message for British Columbian agents and brokers.
“We want to continue to provide support to the people who are licensed with us so that they continue to understand what’s required for them to best serve their clients,” Sinclair said.
“We’d like brokers to reach out to us and ask questions. We want to help you be successful and to let us know where the gaps are.”
Do you have any thoughts about the Insurance Council of BC’s three-year strategic plan? Share your comments below.
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