The Ontario Broker - Volume 23, Issue 3 - 15

Chuck Byrne, Executive Director & COO
Insurance Brokers Association of British Columbia (IBABC)
Unique Challenges
Earthquake insurance has become a critical concern in B.C. For
Licensing
In B.C., CAIB is tied to licensing. The Insurance Council of
many years, brokers have been encouraging homeowners and
businesses in at-risk areas to purchase coverage. However, market
conditions have seen premiums and deductibles for earthquake
insurance rise to the point where even those who have purchased
the coverage are having to self-insure the most probable levels of
damage through their deductibles in the event of an earthquake.
Given current property values, particularly in high-risk earthquake
areas, increased deductibles would place a heavy burden on the
consumer. Adding to that burden are the strata (condo) properties
where homeowners not only have their personal deductible to
deal with, they're also responsible for a portion of their strata
building's deductible.
Capacity is also an issue. Several major insurers chose to take
restrictive action to manage their earthquake accumulation.
There will be a devastating financial burden for affected residents,
Canadian governments and taxpayers to fund recovery when a
damaging earthquake occurs.
B.C. has approved CAIB as one of the education requirements
for earning a licence. B.C. also has a public auto insurance
system through the Insurance Corporation of B.C. so our
Fundamentals of Insurance textbooks and exams include
a portion on ICBC Autoplan. Newcomers to the broker
profession are also required to complete the Insurance Council
of B.C.'s Council Rules Course.
Brokers from other provinces can find information on
licencing on our website and contact the Insurance Council of
B.C. for more information.
Provincial Roundup
Pending Regulatory Changes
Businesses in B.C. that sell insurance incidental to their
ordinary course of business will soon be required to take out
a restricted insurance agent's license. Regulators such as the
Canadian Council of Insurance Regulators (CCIR) and the
Canadian Insurance Services Regulatory Organizations (CISRO)
have been recommending this as far back as 2007. The Insurance
Council of B.C. is undertaking a consultation process with respect
to pending changes to the licensing regime to develop a new
licensing framework for restricted licensees. Currently in B.C., the
incidental selling of insurance is addressed through exemptions
in the Insurance Licensing Exemptions Regulation that effectively
allow certain businesses to sell prescribed classes of insurance.
The Insurance Council of B.C. also introduced a rule this
year that prohibits an insurance agency from engaging in
insurance business for a strata corporation where that agency
has common ownership with the corporation, business or other
entity providing property management services to the strata
corporation.
Fun Fact: Since the inaugural
race of 1967, the City of
Nanaimo, on Vancouver
Island, has been home to the
Great International World
Championship Bathtub Race.
Underrated Landmark: The
Kettle Valley Rail Trail, with its
650 km of connected pathways
from Hope to Castegar for
cycling and walking that include
wooden trestle bridges and
tunnels.
Pop Culture: A lot of pop culture
starts here-Diana Krall's
The Girl in the Other Room,
Michael Bublé's Crazy Love
and Generation X: Tales for an
Accelerated Culture by Douglas
Coupland.
Volume 23 | Issue 3
15
The Ontario Broker - Volume 23, Issue 3

Table of Contents for the Digital Edition of The Ontario Broker - Volume 23, Issue 3
