In Ontario, the Registered Insurance Brokers of Ontario (RIBO) is proposing new supervision requirements that they say are reflective of the industry’s growing complexity.
“While technologies and business models enabled new modes of supervision, (they have) introduced significant challenges. Firms now employ more licensees than ever before, have office locations distributed across the province and operate in a far more complex regulatory environment than when RIBO was first established,” they write. They also note that relatively simple products like personal auto insurance have also grown more complex over time.
Among the proposals it says it is working on – RIBO notes that the proposals are not yet finalized – one highlight is to establish supervision outcomes that principal brokers would need to achieve through their own respective supervision plans.
“A fundamental principle found in nearly all regulated professions is the concept of supervision. This principle places ultimate accountability on a single individual within the firm to ensure that the firm, as well as unlicensed and licensed employees of the firm, comply with the applicable legislation. These individuals are expected to be compliance experts,” they write.
The proposals introduce a requirement that newly licensed, level 1 licensees must act under another licensee for an as-yet unannounced, predefined period. The consultation notes that supervisors could be level 1 licensees with at least 36 months of experience or a level 2 or level 3 agent licensed for more than 24 months. The consultation asks how many years a supervising licensee should be licensed for prior to supervising a new agent. It also asks if license levels matter in the circumstances.
Proposed requirements would also include the need to appoint a deputy principal broker or supervising broker for every 20 licensees. They say bylaws set out the ability for principal brokers to appoint deputies and supervisors, but that the roles appear to be underutilized, potentially because of the related licensing requirements.
Employee suitability assessments
The regulator also has supervision plans in its sights, saying a firms’ supervision plan should achieve a number of outcomes. Among those outcomes, the plans should discuss employee suitability assessments prior to licensure or formalizing sponsorship. Firms should place restrictions on those under supervision who lack the skills, knowledge and competence needed to sell insurance products. The plans should also identify the skills, knowledge and competencies that licensees should demonstrate before being able to sell insurance, provide for the development of training systems and require regular reviews of licensees’ work.
Response plans to correct errors and omissions and documentation are also discussed. The consultation additionally includes a question about brokers’ oversight of any artificial intelligence (AI) tools.
In matters of remote work, RIBO is also asking stakeholders what mechanisms, policies and procedures need to be in place to ensure remote supervision is equivalent to in-person supervision.
“The guidance will address that where a principal broker provides remote supervision, it must be equivalent to the level of supervision that would have been present if the principal broker was providing the supervision in person. The principal broker will be required to demonstrate remote supervision policies and procedures they have established when requested by RIBO,” they add.
Finally, RIBO is proposing to limit to three, the number of firms that a single principal broker could supervise.
“RIBO has identified a need to bolster its existing supervisory framework to ensure it is relevant to today’s industry and prepares licensees to provide advice,” the regulator states. “RIBO has committed to completing this review as part of its upcoming 2025-2028 Strategic Plan.”
The consultation closes January 31, 2026.
