SUBSCRIBE NEWSLETTER
Insurance Standalone health insurers paid gross commissions of Rs. 664 crore in FY 2016-17

Standalone health insurers paid gross commissions of Rs. 664 crore in FY 2016-17

While individual agents received Rs.480 crore from health insurance sales, banks received Rs.159 crore last fiscal.
Team Cafemutual Sep 8, 2017

Six standalone health insurers paid Rs.664 crore as commission to their intermediaries like agents, brokers and banks, shows the latest data collated by Cafemutual from company’s websites.

Last year, standalone health insurers disbursed commission of Rs. 458 crore in FY 2015-16 indicating a 45% growth in commission payouts.

Of the Rs.664 crore, individual agents have received Rs.480 crore from health insurance sales, shows the data. Currently, 2.90 lakh individual agents have partnered with standalone health insurance companies to distribute health insurance policies. A rough calculation shows that the average commission payout to each agent is Rs.16,000 a year.

Similarly, corporate agents like banks and brokers received gross commission of Rs. 159 crore and Rs. 92 crore respectively last fiscal.

Country’s largest standalone health insurer by gross premium, Star Health Insurance paid the highest commission of Rs. 335 crore to its distributors. The company gets majority of business through its agency force of 1.50 lakh agents.

Apollo Munich and Religare Health Insurance followed Star Health by paying gross commission of Rs. 146 crore and Rs. 88 crore respectively. Similarly, Max Bhupa Health Insurance paid gross commission of Rs. 63 crore while Cigna TTK paid Rs. 26 crore in FY 2016-17.

Aditya Birla Health Insurance, the latest entrant amongst the standalone players paid gross commission of Rs. 4 crore to its brokers. The health insurer, who entered the industry in November 2016, does not yet have a large distribution force of individual agents.

Industry experts believe that the commission payouts in health insurance segment will increase further in the coming years due to increasing new business premium, lifestyle-related health complications and rising medical expenditure.

According to a Fintelekt report, the standalone health insurance market will touch Rs. 22,000 crore by 2022. Considering current commission structure of 15%, the standalone health insurers industry would disburse commission of Rs.3,300 crore to its agents. 

Gross commission paid in FY 2016-17

Health insurers

Agents

Brokers

Corporate agents

Others

Total commission

Star Health

309

18

3

3

335.6

Apollo Munich

94.84

24.57

25.63

1.5

146.56

Max Bhupa

39.5

8.65

15.15

0

63.39

Religare Health

28.13

29.16

31.5

0

88.86

Cigna TTK

9.03

8.22

83.94

0.48

26.13

Aditya Birla

0.26

3

0.0032

0.015

4

Total

480.76

91.84

159.2232

4.995

664.04

Source: Company disclosures

0 Comment
Be the first to comment.
Wish to stay on top of your game? Get daily tips, ideas and articles to grow your business.
Subscribe to Cafemutual Newsletter.