Rule change differentiates
between individual and corporate license fee,
Changes to a number of Insurance Council fees will be in effect for the upcoming license year that starts June 1. This includes increases to license and application fees, and differences in individual and corporate licenses.
A notable aspect of the changes is that they introduce a revised fee structure that rebalances how regulatory oversight is funded by licensees. This follows government approval last year of amendments that modernize Council Rule 5, which sets the fees the Insurance Council may charge.
Prior to this, the Rule did not distinguish between types of license, meaning that the cost of a license or application for a corporate entity was the same as for an individual even though the regulatory support and oversight required for corporate entities is more complex and time consuming. Introducing a difference in individual and corporate fees more equitably redistributes the cost of industry regulation.
In April 2022, when annual license renewal (formerly known as Annual Filing) opens, the following changes will apply:
Individual licenses (all classes)
- Individual annual license fee: $260 (a $35 increase)
- Late renewal fee for individual licenses: $150 (a $50 decrease)
Corporate licenses (all classes)
- Corporate annual license fee: $475 (a $250 increase)
- Late renewal fee for corporate licenses: $300 (a $100 increase)
The annual license fee was last updated in 2019. Annual license and application fees shown include a $25 government fee.
Starting June 1, 2022,
- Application fees for individual licenses will be $275, a $50 increase.
- Application fees for corporate licenses will be $775, a $550 increase.
Application fees were last updated in 2008 and this change more accurately reflects the actual cost and effort of processing applications. Previously, the Insurance Council’s ability to recoup these costs was limited by the existing fee structure under Rule 5.
More information about annual license renewal (formerly Annual Filing) will be made available on the Insurance Council of BC website and closer to April 2022.