Are you planning to become an insurance broker in Ontario? Are you an insurance student, or perhaps someone in a different profession looking to make the switch over to insurance? If so, welcome, aspiring professional. If becoming a broker in the beautiful province of Ontario has intrigued you, then this blog is here to act as a guideline on what to do, what you need to acquire first, the difference between an insurance agent and a broker, and more.
AssurUni is one of Canada’s fastest-growing hubs for insurance brokers. The insurance world is exciting, and Ontario’s an amazing province to call your basecamp while you pursue a thriving business in insurance. Read on for more information.
Becoming an Insurance Broker in Ontario: The Necessities
Insurance brokers, at their core, are there to help people. They may work with businesses, individuals and families, or even entire communities.
What is needed to become an insurance broker in Ontario? Insurance brokers must demonstrate a strong, clear understanding of insurance and how to uniquely curate insurance packages for clients. The list below comprises what is needed to become an insurance broker in Ontario.
Qualifications
To become an insurance broker in Ontario, you must first meet specific qualifications. While these vary depending on the regulatory body and insurance companies, you must have a high school diploma or equivalent education requirement. You may also need a post-secondary education in a relevant field, whether that’s business, finance, or insurance. You may also need to acquire an industry certification known as a Registered Insurance Broker of Ontario designation, or RIBO.
Education
With some bodies and insurance companies, a post-secondary education is not mandatory but it is always highly recommended. Pursuing a degree or diploma in finance, risk management, business administration, or even insurance can offer you a significant foundation of knowledge. You may also partake in specialized insurance programs to hone your knowledge and equip you with even deeper industry-specific knowledge.
Specialization
Specializing in certain areas of insurance can be advantageous, especially as it allows you to become a subject matter expert and permits you to cater to the needs of specific clients. Commonly, specialization areas include property and casualty insurance, automobile insurance, life and health insurance, commercial insurance, and special niche markets, like aviation insurance, high-risk insurance, and even marine insurance. Focusing on a specific area allows you to build credibility and attract clients who need additional expertise in that insurance sector.
Licensing
Finally, there’s licensing. Obtaining the correct insurance licenses is a critical step in becoming an insurance broker in the province of Ontario. The Registered Insurance Brokers of Ontario are the regulatory authority that are responsible for licensing insurance brokers in the province. You must meet specific criteria to be eligible for licensing, such as completing an approved educational program and passing the RIBO licensing exam. Once you are licensed, you are considered authorized to legally engage in insurance brokerage activities in the province of Ontario. You must, however, continue to keep up with education and compliance per regulatory requirements to maintain your licensing.
Difference Between an Insurance Broker and an Agent
Often, the terms “insurance agent” and “insurance broker” are used interchangeably. The idea that they’re the same thing or do the same work couldn’t be more wrong. Insurance agents and insurance brokers are both professionals in the insurance sphere, but there’s a key difference between the two when you’re looking to transition into a career in insurance in Ontario.
An insurance agent, for one, sells insurance only from a single company. If you’re looking for independence, freedom, and the ability to flexibly meet your customer’s needs (thereby boosting your relationship and repertoire with them) then this might not be the choice for you, since you’ll be limited to the insurance products that company sells, the discounts they offer, and the finite amount of insurance packages they present. There’s more pressure with insurance agents, since they only sell from the one company, and failing to sell that company efficiently means no sale at all.
The one advantage to an insurance agent is that there’s no comparison shopping, so the process is much quicker than going through a broker.
An insurance broker has a similar education as an insurance agent, except they sell from multiple different providers and never represent solely just the one. They do comparison shopping for the client, meaning the client has numerous options when choosing an insurance policy. It takes longer, but it means a better deal, more money saved, and more comprehensive insurance.
AssurUni is Canada’s Fast-Growing Home for Insurance Brokers
AssurUni is considered to be Canada’s fastest-growing “hub” for entrepreneurial-minded insurance brokers, whether those who join us are already insurance brokers, insurance students, or professionals looking for a change of career path.
We offer competitive damage insurance products from some of Canada’s most reputable insurance providers and offer continuous support (our team handles the accounting!) so that you can focus on the business aspect of what you do, plus managing your relationships. We help increase your productivity with brand new tech, facilities, and state-of-the-art equipment, and allow you the opportunity to experience the freedom of being your own boss.
Interested in joining as an insurance broker in Ontario? Click the button below to get started.