The Insurance Council of Manitoba ("ICM") is seeking comments with respect to proposed amendments to licensing of insurance intermediaries and licensing fees. The proposed amendments include the introduction of corporate licensing fees in anticipation of the future implementation of corporate licensing and changes to existing licensing fees.
ICM signals new license for corporate entities
On March 7, 2022, the ICM issued a bulletin, Proposed Regulatory Amendment to enhance consumer protection (the "ICM Bulletin").
While Manitoba's The Insurance Act ("The Insurance Act") contemplates that licenses may be issued to corporations and partnerships, that has not been the on-going practice. Currently, corporations or partnerships ("firms") employing insurance intermediaries do not require insurance licenses. ICM only requires that firms register with the Manitoba Companies Office and appoint an operating agent to oversee individual intermediaries licensed with the firm.
The ICM Bulletin includes proposed fees for firm licenses. The ICM acts on authority delegated to it by the Superintendent of Insurance pursuant to The Insurance Act. The ICM has stated that these fees are proposed "with the anticipation of the future implementation of corporate licensing."
The ICM has not provided any details or timeframe with respect to the implementation of "corporate licensing." It is also not clear whether "corporate licensing" will apply to partnerships.
The implementation of corporate or entity licensing would align with the approach to entity licensing in most other provinces and, most recently, the Yukon. For details surrounding new insurance entity licenses in the Yukon, see our commentary: New licensing requirement for corporations and partnerships conducting business in the Yukon.
The consultation: Adjustment to fees
The ICM Bulletin also announced a consultation on changes to the Insurance Agents and Adjuster Fees under Regulation 73/93 under The Insurance Act.
With the exception of the restricted insurance agent fees, introduced in 2014, the fees set out in Regulation 73/93 to The Insurance Act were last updated in 2004. The proposed changes are intended to accurately reflect the actual cost and effort of processing applications for licenses and examinations.
In some cases, ICM proposes reduced fees for administrative services such as producing certificates of authority and transferring or amending a license. In most other cases, including fees for licenses, fees will increase. For example, licenses issued to individuals are proposed to change between approximately 8 per cent and 120 per cent, depending on the license category.
No changes are proposed currently for restricted insurance agent license fees.
The consultation process and submitting feedback
The ICM's consultation will be open until May 6, 2024. The ICM has invited written feedback and submissions to the consultation via e-mail to licensing@icm.mb.ca.
We are pleased to assist industry stakeholders interested in engaging with ICM regarding this consultation. Our Financial Services Regulation practice group is here to assist.