Summary

• New rules will give people the right information about incidental, or add-on insurance on products and services they buy or rent
• Oversight of the sale of add-on insurance for products like electronics, farm or construction equipment and rental vehicles protects consumers
• New rules establish representatives to ensure oversight and compliance in the sale of add-on insurance

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New licensing rules coming into effect in early 2027 will require businesses to help people make informed decisions about buying add-on insurance for products or services, such as electronics, construction equipment or rental vehicles under a new restricted insurance-agent licence.

“Too often, people feel pressured or uncertain when offered add-on insurance with purchases like electronics or mortgages,” said Brenda Bailey, Minister of Finance. “We’re making sure businesses offering this type of insurance are licensed and equipped to provide clear information, so consumers can make good, cost-effective decisions.”

As insurance products have grown in complexity, cost and value, certain businesses that sell incidental insurance through their employees or agents will soon need to have a restricted licence that comes with rules to protect buyers.

Providing oversight and clarity for customers

The restricted insurance-agent licence will bridge the gap between full-insurance licensing and the current lack of oversight for incidental insurance sales. Sales representatives will have to be trained to provide consumers clear, accurate information before purchasing.

Businesses eligible for the new licence include:

• construction-equipment dealers
• customs brokers
• farm implement dealers
• mortgage brokers
• motor vehicle dealers
• portable electronic vendors, and others

Stronger oversight will help provide clarity for consumers and salespeople. For example, under the new licensing framework, stores must train employees on warranty insurance terms, reducing the risk of misleading claims about product coverage.

Strengthening the restricted insurance agency licence

The Insurance Council of BC will administer the licensing process and develop rules that define licence-holder responsibilities, including:

• licensing requirements;
• qualifications and oversight roles for designated representatives who provide oversight and compliance; and
• core competencies and training standards for employees.

By ensuring incidental insurance is sold transparently and responsibly, the new framework protects consumers from unclear or unnecessary costs and empowers them to make choices that fit their needs and budgets.

Quotes:

Janet Sinclair, CEO, Insurance Council of BC –

“Insurance, at its core, is a promise. Consumers deserve clarity on what they’re paying for, what they’re agreeing to, and what obligations the seller must meet. The new licence brings structure and education to this type of insurance sale, equipping businesses to keep that promise with integrity and accountability.”

Tayt Winnitoy, chief operations officer, Consumer Protection BC –

“Consumer Protection BC always supports enhanced protections to help consumers understand their rights before a purchase. We will continue to work with the Insurance Council to ensure our processes support a seamless transition for our travel and funeral licensees that offer insurance.”

Quick Facts:

• Public consultation on the Insurance Council of BC’s rules will begin in February 2026.
• The Restricted Insurance Agent Licence Regulation comes into force Jan. 1, 2027, with a three-month transition period until March 31, 2027, giving businesses time to apply for a licence and adjust to the new requirements.
• Four other provinces – Alberta, Saskatchewan, Manitoba and New Brunswick – have similar restricted licensing models.
• Currently, B.C.’s restricted insurance licence applies only to travel agencies selling travel insurance.

Learn More:

• To read more about the regulation, visit the Insurance Council of BC: https://www.insurancecouncilofbc.com/RIA

A backgrounder follows.