Financial and Consumer Services Commission of New Brunswick proposes changes to its insurance licensing regulatory framework

The Financial and Consumer Services Commission of New Brunswick (the Commission) recently published for comments proposed amendments to Rule INS-001 Insurance Intermediaries Licensing and Obligations (the Rule).

The proposed amendments would modify the supervision and oversight of general insurance agents, facilitate the mobility of licensed individuals, and simplify the licensing requirements related to distributing travel insurance products.

Interested parties have until April 18, 2025, to share their comments with the Commission.

Supervision and oversight of general insurance agents

An objective of the amendments is to clarify the Commission’s expectations for the supervision and oversight of general insurance agents. 

More specifically, level 1 general insurance agents, who are currently only able to offer personal lines of insurance, will be able to also offer commercial lines of insurance, under proper supervision. 

The supervision requirements applicable to level 2 general insurance agents will not be limited to a 12-month period anymore, and their supervision will be performed by the designated representative of the corporate agency. The training, supervision and oversight obligations of the designated representative should also be adapted to the firm’s agents’ qualifications, education and experience, as well as to the nature of the insurance business.

Furthermore, the Superintendent’s capacity to waive or reduce the supervision requirements will be limited to level 1 agents who have been licensed in another jurisdiction within the previous 24 months, and to applicants residing in New Brunswick who intend to apply in another jurisdiction with similar supervision requirements.

Mobility of licensed individuals

The proposed amendments also include certain changes facilitating the transfer of workers coming from other jurisdictions, as well as for those moving from one firm to another.

Section 6 of the Rule, covering the recognition of an applicant’s substantially similar licence and work experience in another jurisdiction, will include a mention of the Canadian Free Trade Agreement, which promotes interprovincial trade and workers’ mobility within Canada. The proposed amendments also include the recognition for licensing purposes of the Chartered Insurance Professional designation from the Insurance Institute of Canada.

Adjusters, agents and special brokers changing their firms or agencies will not have to file a new application anymore and will be able to simply update their registration information. However, a new application will be required when agents change their sponsors.

Licensing requirements for travel insurance distribution

Another objective of the proposed amendments is to streamline the licensing requirements for travel insurance agents and agencies in circumstances where they hold other insurance licenses.

No additional licence or education requirement will apply to life or accident and sickness agents distributing travel insurance, but they will need to indicate on their applications or renewals that they also plan to sell travel insurance. A managing general agent authorized to carry on life insurance and/or accident and sickness insurance will also be permitted to carry on the business of travel insurance. Moreover, an agency or a managing general agent authorized to carry on general insurance will be permitted to carry on the business of travel insurance if their individual agents hold their own licenses in travel insurance. Finally, the person acting as the designated representative of a travel agency will be required to hold his or her own license in travel insurance. 

Consultation period open to industry and the public

Industry members may wish to make written submissions in the consultation process to ensure their expertise and experience in relation to insurance intermediary licensing in New Brunswick are properly reflected and considered by the Commission, as it moves forward with revising and finalizing the proposed amendments. 

We note this public consultation is currently open for comments and will close on April 18, 2025. We remain available should any industry members wish to discuss the proposed amendments or the process for this public consultation more generally.