Last Updated on June 7, 2026 by Jacques Wong, B.Sc.
Are you contemplating a career as an insurance broker in British Columbia? This Licensing Guide will help you discover the two primary pathways to obtaining your license: the Fundamentals of Insurance exam and the Canadian Accredited Insurance Broker (CAIB) 1 program. Both options equip you with the necessary knowledge to become a licensed insurance professional and meet the requirements for a Level 1 license. However, each pathway offers distinct advantages. This guide provides a step-by-step overview to help you start your journey.
Fast-Track Guide to Launch Your Insurance Career with PNC Learning
Ready to start an exciting and rewarding career in the insurance industry? Great choice! Insurance professionals enjoy job stability, competitive pay, and the meaningful work of helping others protect what matters most.
Understanding the Level 1 License
In BC, there are three levels of insurance license. While the range of insurance products you can sell at each level remains consistent, a Level 2 insurance license lets you work independently without supervision, and a Level 3 insurance license lets you manage a brokerage as the Nominee.
Regardless of your future aspirations, everyone starts with a Level 1 license.
Option 1: Fundamentals of Insurance (FOI) Exam
This pathway is ideal for those new to the insurance industry. First, Fundamentals of Insurance is more accessible and cost-effective compared to the CAIB 1 program. The exam fees are cheaper compared to the CAIB 1, and it’s 100 multiple-choice questions, making it more beginner-friendly as well. It offers foundational knowledge that enables you to obtain your General Insurance Level 1 license with ease.
Option 2: Canadian Accredited Insurance Broker (CAIB) Exam
The CAIB program offers a more structured and progressive approach to insurance education. Spanning four levels, it equips aspiring brokers with advanced concepts and prepares them for long-term success in the industry. Therefore, it is an excellent choice for individuals seeking to get their Level 1 license in BC, which has a comprehensive curriculum.
If you’re uncertain about which path to start your career, you can read our detailed comparison of the Fundamentals of Insurance and CAIB 1 program.
Recommendation: For new brokers, we suggest starting with the Fundamentals of Insurance. All things considered, it’s easier to pass and the exam fees are lower, which makes it an optimal starting point. Also, FOI covers ICBC, whereas CAIB 1 covers automobile insurance more generally, as it is a national program. CAIB 1 also covers Farm Insurance, which may not be the most relevant depending on where you’re located. Therefore, I consider FOI to be contain more relevant education for new insurance brokers.
Step 1: Study Course Materials
Once you have determined your pathway, enroll in either the Fundamentals of Insurance or CAIB 1 Course. Both are available online for $249, providing access to recorded lectures, practice exams, and comprehensive course notes to maximize your chances of success.
Step 2: Register for and Pass the License Exam
Fundamentals of Insurance Exam
- Cost: $195 (Lower Mainland); cancellation or deferral fee is $75.
- Registration: Available online here.
- Remote Exam Option: For those outside the Lower Mainland, nominate a proctor and select an alternate exam location, such as your local college.
CAIB 1 Exam
- Cost: $650 (for the digital textbook and exam).
- Registration: Available online here.
Exam Preparation Tip: To pass the exam, we recommend that you utilize the recorded lectures, practice exams, and study materials included in the course and leverage your assigned course tutor for help when you get stuck.
Step 3: Submit Your License Application
After successfully passing your exam, submit your application for the Level 1 license through this Login portal. To explore a detailed breakdown of BC licensing costs click here.
Advancing to BC Insurance License Level 2
Achieving a Level 2 license allows brokers to work independently, whether in-office or remotely. This milestone in your insurance career is crucial because it allows you to build your own book of business and unlock unlimited earning potential through commissions. Furthermore, some brokerages will even allow you to own your book of business, letting you to build equity. Typically, books can be sold for 2-3x commission revenue whenever you decide to exit the industry.
After you have obtained your Level 1 license, follow these steps to upgrade your qualification to Level 2:
Step 1: Study Course Materials
You must complete and pass BOTH the CAIB 2 & CAIB 3 exams to upgrade to a Level 2 license. While you can do these 2 exams in any order, we recommend starting with CAIB 3 (it’s easier) before tackling CAIB 2.
In our experience, we find the CAIB 2 course easier because it’s more focused on a few topics. Additionally, by taking the easier exam first, you get used to the CAIB exam format of short answer questions, which you wouldn’t have encountered before if you took Fundamentals of Insurance to get your Level 1.
You may purchase each course separately, but we recommend the CAIB 2 & 3 bundle, which is available for $349 (save ~$150 vs purchasing individually).
Step 2: Register and Pass the Exam
- Exam Fee: $650 (for the digital textbook and exam).
- Registration: Conveniently register online here.
Step 3: Submit Your License Application
Once you have passed both CAIB 2 & 3 exams, you can now submit your application for the Level 2 license through this Login Portal.
Level 3 Insurance License: Managing Your Own Brokerage
If you’re aspiring to start or manage an insurance brokerage, the Level 3 license is essential. While there can be only 1 Nominee or Level 3 licensee per brokerage, we strongly recommend getting Level 3 “qualified” as quickly as possible. By getting all your insurance exams done as early as possible, you can maintain the momentum of your studies and in fact, it only gets harder to study as time goes on and you get deeper into your career/personal life with more and more responsibilities from either side.
We recommend getting all your exams done as soon as possible. Even if your brokerage doesn’t need another Level 3 insurance license or if you don’t plan on opening your brokerage right now, it’s wise to complete the required exams as early as possible. If you wait to write your exam when you need it, it’ll be too late and much more complicated.
Here’s the process on how to obtain your Level 3 license after earning your Level 2:
Step 1: Study Course Materials
- Enroll in the CAIB 4 course for $249.
Step 2: Register and Pass the Exam
- Exam Fee: $650 (for the digital textbook and exam).
- Registration: Available online here.
Step 3: Submit Your Insurance License Application
When you have passed the exam, submit your Level 3 licensing application through this Login portal and register and complete the pre-requisite Supervision Course for $100. Learn more about the new pre-requisite Supervision Course for General Insurance Agents here.
The CAIB Designation
The CAIB Designation is a prestigious acknowledgment of expertise and professionalism within the property and casualty insurance industry. To obtain this:
- You must complete all four levels of the CAIB program. If you initially pursued and completed the Fundamentals of Insurance for your Level 1 qualification, the next step toward earning your CAIB designation is to enroll in and complete the CAIB 1 program
- Work for an IBAC-affiliated brokerage.
- Reach out to your local insurance brokers’ association to formally obtain your CAIB Designation.
Learn more about the CAIB designation process here.
Although the CAIB Designation is nice-to-have, we recommend prioritizing getting your insurance licensing levels first, as these directly influence your career trajectory and responsibilities you can undertake with your license. The CAIB Designation, while beneficial, doesn’t directly lead to leveling up your license enabling you to do more. As a result, this is the overall licensing path we recommend:
- Fundamentals of Insurance (this gets you licensed with your Level 1 and working for minimal cost and time).
- CAIB 3 and then CAIB 2 to obtain your Level 2 license so you can work independently, build your own book of business, etc.
- CAIB 4 and the Supervision course to be Level 3 “qualified” as explained above.
- CAIB 1 to finish off your CAIB Designation if desired.
BC Insurance Licensing Costs
While obtaining a BC insurance license involves some upfront costs, it’s an investment in a lucrative career. For a detailed cost breakdown, visit our BC Licensing Costs Guide.