The insurance industry has paid out over Rs.16,000 crore commission to their agents and brokers in the first nine month of last fiscal, shows data published by Life Insurance Council, a trade body of the life insurance industry.
The data shows that 24 companies have together disbursed gross commission of Rs.16,000 crore in April-December 2017 as against Rs.13,000 crore in the corresponding period the preceding year, a growth of 23%.
IRDAI data shows that the industry has registered 11% growth in the new business premium with a collection of Rs.1.38 lakh crore from 1.75 crore insurance policies.
Considering that the life insurance industry has 20 lakhs agents, a rough calculation shows that each agent has earned close to Rs.80,000 in nine months.
Last year, IRDAI had hiked the upfront commission to check agent attrition. IRDAI had hiked the first year commission (upfront commission) in pure risk policies, like term insurance plans having premium paying term of over 12 years, to 50% of annual premium and 40% in traditional policies, whole life insurance, money back and endowment policies. The regulator hiked commissions in other segments too.
As on December 2017, the life insurance industry had assets under management of Rs.28 lakh crore.
Commission payouts of insurance industry
|
Financial Year |
Commission (In Rs. Crore) |
|
April-December 2016-17 |
16, 567 |
|
April-December 2015-16 |
13,683 |
|
April-December 2014-15 |
13,000 |
|
April-December 2013-14 |
12,000 |
Source: Life Insurance Council
