• How to Become an Insurance Broker in Ontario

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An insurance broker helps clients navigate the often-complex world of insurance by finding the most suitable policies for their needs. From auto to home and commercial insurance, brokers act as intermediaries between customers and insurance companies, ensuring clients receive the best coverage.

In Ontario, insurance brokers must be licensed through the Registered Insurance Brokers of Ontario (RIBO), which regulates and oversees the profession. RIBO ensures that brokers meet professional standards, follow regulations, and provide reliable service to consumers. Becoming a broker is a rewarding career offering job stability, flexibility, and opportunities for growth.

Overview of the Licensing Process

To become an entry-level insurance broker in Ontario, also known as a RIBO Level 1 Licensee, follow these steps:

  1. Pass the required exam.
  2. Secure a job with a RIBO registered brokerage.
  3. Apply for your RIBO Level 1 License.
  4. Maintain your license.

Step 1: Determine the Right Exam for You

1. Level 1 – Entry-Level Broker Exam

The Level 1 Exam is designed for individuals new to insurance. You can take the exam online or in person, and it is administered by the Insurance Brokers Association of Ontario (IBAO) and the Insurance Institute of Canada (IIC). For more information on the exam, view the Level 1 – Entry-Level Broker Exam.

2. Equivalency Exam

If you have prior experience in insurance, hold a license from another jurisdiction, or possess an insurance designation, you may qualify for an equivalency exam. Use the Equivalency Self-Check Tool to determine if you are eligible.

  • Exam Fee: The cost of any of RIBO’s exams is $300, which is separate from the license registration fee.

Step 2: Apply for Your License

Upon successfully passing the exam, you can proceed with registration, subject to meeting the suitability requirements, as an insurance broker with a RIBO-registered brokerage firm. We strongly recommend checking the Registration Checklist before taking the exams. Candidates are responsible for verifying their eligibility for licensure prior to taking any exam. Please note that passing the exam does not guarantee full eligibility, as additional background checks (including but not limited to criminal records and conflicts of interest with other licensing bodies) will be conducted during the formal licensing application process.

You will need to provide the following when applying for your license:

  1. Government-Issued ID: To verify your identity.
  2. Criminal Record Check: A current check is required.
  3. Employment Confirmation: You’ll need a job offer from a RIBO-registered brokerage in Ontario.
  4. Secondary Business Exemption Form: If applicable, for those with other business involvements.
  5. Bankruptcy or Court Documents: If applicable, submit any legal documentation.
  6. License Registration Fee: There is a $220 fee to apply for your RIBO license after passing the exam. This is in addition to the $300 exam fee.

Note: You may hold another insurance license; however, licensing conflicts such as holding a real estate or mortgage broker license will not be allowed. Failure to provide all necessary documents will delay the process.

What Happens After You Get Licensed?

Once licensed as a RIBO Level 1 Broker, you can begin your career as a broker. Here’s what you should know after getting licensed:

  • Supervision by a Principal Broker: As a Level 1 broker, you will be required to act under the supervision of a Principal Broker, who will ensure that you comply with RIBO regulations and guidelines.
  • Employed by an Active Firm Licensee: You must be employed or sponsored by an Active Firm Licensee, which is a brokerage registered with RIBO.

Continuing Education (CE)

To maintain your license, RIBO requires you to complete continuing education (CE) credits annually. These credits ensure you stay updated with industry standards and regulations. For more information on the specific CE requirements, visit RIBO’s Continuing Education Page.

License Renewal

Your RIBO license must be renewed regularly to remain active. License renewal requires both the completion of CE credits and the payment of renewal fees. To learn more about the renewal process and deadlines, visit the RIBO Renewal Centre.

Common Questions

Does RIBO Administer the Exams?

No, the exams are administered by IBAO or IIC. For issues related to registration, rescheduling, accommodations, or technical problems, please contact your exam provider directly.

Can I Retake the Exam?

Yes, candidates are allowed two attempts with each exam provider (IBAO and IIC). If all four attempts are unsuccessful, you must wait 8 months before reapplying.

Can I Hold Another License Alongside a RIBO License?

You may hold another insurance license. However, holding other licenses, such as a real estate or mortgage broker license, is considered a conflict of interest. You must surrender any conflicting licenses before applying for a RIBO license.

Can I Work Part-Time as a Broker?

Your role as a RIBO licensed broker must be your primary job or employment. If you wish to engage in other work, you need to apply for a Secondary Business Exemption.

Final Checklist Before Applying

  • Passed the appropriate exam.
  • Verified your eligibility for licensure.
  • Have a valid government-issued ID.
  • Completed a criminal record check.
  • Secured employment with a RIBO registered brokerage.
  • Submitted any additional documents (e.g., court or bankruptcy papers, if applicable).

For more details, visit the RIBO Registration Checklist.