Licence

A licence in the context of insurance refers to the official authorization granted by a provincial or territorial regulatory body that allows an individual or company to sell, advise on, or administer insurance products. Licensing ensures that insurance professionals meet educational, ethical, and legal standards required to operate in their jurisdiction. It protects consumers by ensuring that only qualified and accountable individuals provide insurance advice and services.

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Every insurance advisor, broker, or agent in Canada must hold a valid licence for the province in which they conduct business. Each province has its own regulatory authority - such as the Alberta Insurance Council (AIC) or the Financial Services Regulatory Authority of Ontario (FSRA) - that oversees licensing and continuing education requirements. Insurers themselves are also licensed and regulated to ensure financial solvency and compliance with federal and provincial laws.

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Example:

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If you live in Alberta and purchase a life or health insurance policy, the advisor who sells it must be licensed with the Alberta Insurance Council. Without a valid licence, they are not legally permitted to recommend or sell insurance products.

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What to Watch For:

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Before working with an advisor or broker, verify that their licence is active and in good standing with your provincial regulator. Unlicensed individuals cannot legally sell insurance or provide professional advice.