Why RIBO is updating its entry level broker exam

Registered Insurance Brokers of Ontario (RIBO) is enhancing the standards for becoming a licensed insurance broker in Ontario by making changes to its entry-level exam.

The move is part of the regulator’s ongoing efforts to ensure new brokers better understand the knowledge, skills and abilities required for servicing the insurance industry.

“We believe that these changes will lead to increased customer satisfaction,” Patrick Ballantyne, RIBO CEO told Canadian Underwriter. “When consumers feel that their insurance needs are being understood by knowledgeable brokers, they’re more likely to be satisfied with their insurance experience and more likely to receive better professional services.

“That is our ultimate goal,” he said. “Our sole focus is to regulate the profession in the interest of the general public.”

Among the changes is an increase from 90 to 100 graded exam questions, which will offer a more comprehensive evaluation of topics critical for entry-level brokers, such as legislation and insurance product knowledge.

The new exam form will also introduce new questions designed to evaluate a candidates’ commercial insurance knowledge.

Update process

The changes to the exam come after RIBO consulted a working group of industry experts. The group determined there was a need for entry level brokers to develop a stronger foundation in commercial insurance; a change they found necessary to keep new brokers up to date with current industry practices.

“While we have always had a commercial component to the exam, commercial has become more complex, as with any other type of insurance,” Ballantyne said.

“The expert working group that assisted us with this thought there was a good opportunity to include some enhanced commercial content,” he said. “There’s a bit more of a focus on some critical subjects, including the legislation that impacts insurance brokers as well as insurance product knowledge.

“Our goal here is to just make sure that the foundations that they have, after taking the Level 1 licensing exam are sufficient to enable them to start that commercial journey, if that is the area that they choose to go in.”

The updated exam aims to not only test entry-level brokers on technical skills, but on their behavioural approach for how they would provide professional service to customers, Ballantyne explained.

The exam is multiple choice, which RIBO said better tests brokers’ competencies, as well as enables educators to mark more efficiently.

Timeline to changes

Beginning in January 2024, the first of the effective changes will be the increase from 90 to 100 questions. Exam fees will also rise from $250 to $300.

RIBO released its new competency profile this fall to give broker educators and content developers adequate time to update their materials. However, the competency profile will not go into effect until January 1, 2025.

RIBO will begin piloting the new exam questions this November and will use the results to update the exams starting in January 2024. It also will be developing an optional post-mortem survey for individual examinees to get their feedback on the new questions and their exam experience.

“This information, along with statistical information on how examinees are performing on the exam, will inform the final product – a completely refreshed exam being launched in January 2025,” RIBO told CU.

For the time being, the changes will be implemented to the Level 1 exam only. RIBO will be consulting with stakeholders to determine whether there is merit in updating the Level 2 and 3 exams.

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