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How To Become An Insurance Broker In Ontario (Step-by-Step)

How To Become An Insurance Broker In Ontario | KBD Insurance
Curtis Killen

As president of KBD, Curtis aims to simplify insurance for his clients. He’s helped lead KBD to become one of Canada’s fastest 400 growing companies according to the Globe & Mail.

Wondering how to become an insurance broker in Ontario? Thankfully, as an Ontario insurance broker with 40+ years in the Canadian market, we know a thing or two about the process. And – we’re hiring!

Interested in learning how to become an insurance broker in Ontario?

You’ve come to the right place. 🤓

KBD Insurance has a 40+ year history as a Quebec insurance broker, and we recently opened an Ontario office.

Below, we’re explaining each of the steps it takes to become an insurance broker in Ontario, from getting your RIBO license, to getting hired in your first role.

PS: If you’re interested in the insurance industry, and are based in the Ottawa area – we’re hiring!

You can take a look at our insurance broker job posting here.

Keep reading to learn all of the details. 👇

Jump ahead to find what you need:

How to become an insurance broker in Ontario

Becoming an insurance broker in Ontario can be an exciting and rewarding career path.

We can vouch for it. 👏

To get an inside look, you can join us on a day in the life of an insurance broker at KBD here:

To get into the details, here are the steps you can follow to become an insurance broker in Ontario:

  • Understand the Licensing Requirements: Research the licensing requirements set by the Financial Services Regulatory Authority of Ontario (FSRA). This will help you understand the qualifications and prerequisites you need to meet.
  • Obtain Education and Training: Ontario requires that you complete a specific insurance broker course and training to become a licensed insurance broker. The Insurance Brokers Association of Ontario (IBAO) offers insurance broker courses that cover the required curriculum.
  • Obtain the Necessary Certifications: Once you have completed the required education, you need to obtain the necessary certifications. This includes passing the Registered Insurance Brokers of Ontario (RIBO) exam. The RIBO exam assesses your knowledge of insurance products, regulations, and ethics. Visit this page for RIBO license costs.
  • Gain Work Experience: Once you have passed the RIBO exam, you can apply for employment as an insurance broker. To become a licensed insurance broker, you must gain practical work experience within one year of passing the RIBO exam. Some brokerages will also front the costs of the exam for you if they think you’re a good candidate.
  • Apply for a Broker’s License: After meeting the educational and experience requirements, you can apply for your insurance broker license through the FSRA. The application process typically includes submitting an application form, providing proof of education and experience, and paying the necessary fees.
  • Complete a Background Check: As part of the licensing process, you will be required to undergo a background check. This includes providing personal information and consent for the FSRA to conduct a criminal record check.
  • Continual Professional Development: Once you become a licensed Ontario insurance broker, you must participate in ongoing professional development activities to maintain your license. This can involve completing continuing education courses or attending industry seminars.

As an Ontario insurance broker, you have to stay updated with the FSRA’s regulations and guidelines to ensure compliance and provide the best service to your clients.

With dedication, hard work, and a commitment to learning, you can start a successful career as an insurance broker in Ontario.

Interested in a career as an insurance broker?

We’re hiring!

What do insurance brokers do?

Insurance brokers like KBD act as intermediaries between clients seeking insurance coverage and insurance companies offering policies.

Our main objective is to help clients find suitable insurance products that meet their needs and protect their interests.

Here are the main responsibilities that we have as insurance brokers in Ontario:

  1. Provide tailored advice and solutions: As brokers, we work closely with clients to assess their insurance requirements, understand their specific risks, and determine appropriate coverage options. We provide expert advice, explain insurance policy terms and conditions, and help clients make informed decisions.
  2. Shop the market: As insurance brokers, we utilize our industry knowledge and network to shop around on behalf of clients, comparing different insurance policies from multiple insurers to secure the best coverage and pricing. We negotiate with insurance companies to obtain favorable terms and premiums for our clients.
  3. Assist with claims: During the claims process, brokers assist clients by guiding them through the necessary steps and advocating on their behalf. We help clients understand their policy coverage and work with insurers to ensure prompt and fair claim settlements.

Overall, as insurance brokers, we act as trusted advisors.

We leverage our expertise to educate and guide clients, providing personalized insurance solutions, and maintaining long-term relationships to meet their evolving insurance needs.

What do you need to know to be an insurance broker?

To become an insurance broker in Ontario, there are several key areas of knowledge that you need to have.

Here’s a breakdown of what you should know as an Ontario insurance broker:

  • Insurance Products: Familiarize yourself with various types of insurance products that you intend to specialize in. This can include auto, home, life, health, commercial insurance, and more. Understand the coverage options, policy terms, and exclusions for each type of insurance.
  • Insurance Regulations: Stay updated on the insurance regulations set by the Financial Services Regulatory Authority of Ontario (FSRA). This includes understanding the licensing requirements, consumer protection measures, and compliance obligations for insurance brokers.
  • Market Trends: Keep a pulse on the insurance industry by staying informed about market trends, emerging risks, and changes in customer preferences. This will help you provide valuable insights and advice to your clients.
  • Customer Needs Assessment: Develop the ability to assess customer needs effectively. Ask relevant questions, listen actively, and analyze client information to identify the most suitable insurance solutions for their unique circumstances.
  • Risk Management: Understand the principles of risk management and how insurance plays a crucial role in mitigating risks for individuals and businesses. Learn to evaluate and analyze risks, and recommend appropriate insurance coverage accordingly.
  • Communication Skills: Enhance your communication skills, both written and verbal, to effectively explain insurance policies, terms, and conditions to clients. The ability to simplify complex concepts and build trust with clients is essential.
  • Sales and Negotiation: Learn sales techniques and negotiation strategies to effectively market insurance products and close deals. Build strong relationships with clients, understand their objections, and address their concerns to secure their trust and business.
  • Ethical Practices: Adhere to high ethical standards and conduct your business with integrity. Understand the importance of confidentiality, honesty, and transparency in maintaining client trust and professional credibility.
  • Technology and Software: Familiarize yourself with insurance-related software and technology tools commonly used in the industry. This includes insurance quoting systems, customer relationship management (CRM) software, and online portals.
  • Ongoing Learning: Stay updated with industry advancements, attend relevant workshops or seminars, and pursue additional certifications to enhance your knowledge and skills throughout your career.

By following these steps, you’ll be well-equipped to serve your clients as a knowledgeable and trusted insurance broker in Ontario.

Ready to apply?

We’re hiring!

How much does an insurance broker make in Ontario?

So, how much do insurance brokers make in Ontario?

Fair question. 🤓

According to Indeed.ca the average insurance broker salary is ~$50k in 2023.

Like with any industry, the average insurance broker’s salary in Ontario varies depending on factors such as experience, clientele, and performance.

Entry-level brokers typically start with a base salary, while experienced brokers often earn a combination of base salary and commission.

But we can say that on average, insurance brokers in Ontario earn a competitive income, which includes performance-based commissions.

Commissions are typically based on the premiums generated from the policies they sell.

Successful brokers who build a strong client base and consistently meet their sales targets have the potential to earn a higher income.

It’s important to note that individual insurance broker’s earnings can vary significantly, and factors such as market conditions and economic factors may also influence income levels.

Are insurance brokers paid commission?

Yes, insurance brokers in Ontario are often paid through a combination of base salary and commission.

Commission-based compensation is a common practice in the insurance industry and provides brokers with an incentive to generate sales and build client relationships.

Here’s how compensation typically works in Ontario:

  • Base Salary: Depending on the brokerage, insurance brokers generally receive a base salary that serves as a fixed income. This base salary ensures a certain level of financial stability regardless of sales performance.
  • Commission: In addition to the base salary, brokers earn commissions based on the premiums generated from the insurance policies they sell. The commission percentage varies depending on the type of insurance and the specific agreement with the insurance company.
  • Commission Structure: The commission structure can vary among insurance companies and may be based on factors such as the premium amount, policy type, and renewal terms. Brokers earn a percentage of the premium as their commission, which is paid to them when the policy is sold or renewed.

The commission-based compensation model provides an opportunity for brokers to increase their earnings based on their sales performance, client retention, and the value of the policies they sell.

Successful brokers who excel at building relationships and generating sales have the potential to earn a higher income through commissions.

Looking for your next opportunity?

We’re hiring in Ottawa!

Wrap-up

So, there you have it.

Everything you need to know about how to become an insurance broker in Ontario. 💡

As far as we’re concerned, a career in insurance is a great career to pursue.

If sales interests you, a few of the benefits include a competitive salary, the chance to move up, and being part of a stable industry.

And you can get started with just a few simple steps.

To recap:

  1. Follow an insurance broker course
  2. Pass the required exams
  3. Obtain your RIBO license
  4. Complete the license requirements through the FSRA
  5. Find employment within one year

After these steps, you’ll be a registered insurance broker – ready to sell in Ontario.

Have we sold you yet? 😉

Remember: We’re hiring!

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