RIBO was established in 1981 as a self-regulatory body intended to licence and regulate property and casualty insurance brokers in the Province of Ontario. One of RIBO’s founding fathers, Donald W. Lambie, discussed it’s formation in the following article, originally published in 1981.
The Formation of RIBO
By Donald W. Lambie
RIBO is possibly the most significant development to date for general insurance intermediaries in the Province of Ontario with ultimately beneficial effect on buyers of general insurance in this province.
RIBO is not a trade association. It is the self-regulatory body, which has been incorporated to assume the regulatory power previously exercised by the Superintendent of Insurance.
It is responsible for the qualification, registration and disciplining of all those general insurance intermediaries who, in the past, operated as independent agents, brokers or insurance consultants.
Under the provisions of the new RIBO Act, all persons who were operating as independent agents and brokers in Ontario as of October 1, 1981, automatically became registered insurance brokers on that date.
Members of the RIBO Board contributed over 5,000 hours of their time to this project over the two years it took to get the RIBO legislation passed.
Drafts of what became Bill 118 (later the “Registered Insurance Brokers Act”), numbered in the 20s, and the regulation in the 30s, before we were successful in obtaining approval.
We initially presented a draft (I believe the 10th), of the proposed legislation to each licensed agent and broker in the province in April 1980. We then conducted a blitz of meetings in 37 locations throughout the province over a two-day period for discussions and input. There were two additional updated mailings.
Each resulting comment and suggestion was carefully considered by the RIBO Committees and its Board, always using as our benchmark “is this in the best interest of the consumer?”
Self-regulation means self-discipline, self-control, and self-established minimum standards of stability and performance.
We have kept in mind that the legislation had to be compatible with the small, as well as large operation, including those in between. Any difference in treatment of the two had to be defensible.
It is recognized that self-regulation is, and will continue to be, an evolving process. Undoubtedly adjustments will need to be considered in the legislation where experience and the consumer interest indicate.
Bill 118 was given third reading on December 10, 1980 and became the Registered Insurance Brokers Act. Certain sections of the Act were proclaimed April 1, 1981, so that the Board of RIBO could proceed with authority towards the implementation of “self-regulation” scheduled for October 1, 1981. The balance of the Act, relating to those sections imposing obligations on the former agents and brokers (now all called brokers), was proclaimed as of October 1, 1981, and self-regulation is now in effect.
In all our deliberations, we have endeavoured to keep the consumers’ interest paramount, with the conviction that, in addition to complying with our mandate from the government, what is good for the consumer is, or eventually will be, in the best interest of the intermediaries, the insurers and the government.
- December 10, 1980 – Bill 118 was given third reading on December 10, 1980 and became the Registered Insurance Brokers Act. Certain sections of the Act were proclaimed April 1, 1981, so that the Board of RIBO could proceed with authority towards the implementation of “self-regulation” scheduled for October 1, 1981.
- April 1, 1981 – Proclamation of the Act
- The following sections of the Registered Insurance Brokers of Ontario Act were proclaimed and went into effect on April 1, 1981: 1, 4, 6, 8-12. 15-27, 30. 31. 33-35, 44, 46 and 47. These sections gave RIBO the authority to act.
- May 25, 1981 – The Honourable Gordon Walker, the Minister of Consumer and Commercial Relations, requests that a draft copy of the RIBO Regulations be sent to all brokers in the province for review and comment. The draft was mailed out in June.
- September 23, 1981 — The final RIBO Regulation is approved by the Government of Ontario.
- October 1, 1981 – The balance of the Act, relating to those sections imposing obligations on the former agents and brokers (now all called brokers), was proclaimed as of October 1, 1981, and self-regulation came into effect.