The BC government is introducing new licensing rules aimed at strengthening consumer protection when people are offered add-on insurance while buying or renting everyday products and services.
The changes, announced by the Ministry of Finance, will require many businesses to hold a restricted insurance-agent licence before selling incidental insurance such as extended warranties on electronics, vehicle warranties, or credit protection tied to loans or mortgages.
The new rules are set to come into force on January 1st, 2027, with a three-month transition period allowing businesses time to comply.
According to the province, the move is intended to address long-standing concerns around unclear information and pressure tactics that consumers may experience when add-on insurance is offered at the point of sale.
“Too often, people feel pressured or uncertain when offered add-on insurance with purchases like electronics or mortgages,” said Finance Minister Brenda Bailey in a statement.
“We’re making sure businesses offering this type of insurance are licensed and equipped to provide clear information, so consumers can make good, cost-effective decisions.”
Under the new framework, businesses will be required to ensure staff are properly trained to explain insurance coverage, limitations, and costs before a purchase is made.
The goal is to reduce misleading claims and help consumers better understand whether the coverage actually fits their needs.
Businesses expected to be impacted by the changes include motor vehicle dealers, mortgage brokers, construction and farm equipment dealers, portable electronic retailers, and rental vehicle providers, among others.
The Insurance Council of BC will oversee the licensing process and develop rules outlining requirements, including employee training standards and the role of designated representatives responsible for compliance.
Janet Sinclair, CEO of the Insurance Council of BC, said the new licence brings greater accountability to a part of the insurance market that has largely operated without consistent oversight.
“Consumers deserve clarity on what they’re paying for and what they’re agreeing to,” Sinclair said. “The new licence brings structure and education to this type of insurance sale.”
Public consultation on the new rules is expected to begin in February 2026. BC will join Alberta, Saskatchewan, Manitoba, and New Brunswick, which already have similar restricted licensing models in place.
Currently, BC’s restricted insurance licensing applies primarily to travel agencies selling travel insurance. The updated regulation significantly expands that scope.
