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Insurance Life insurers pays out gross commission of Rs.16,000 crore in nine months

Life insurers pays out gross commission of Rs.16,000 crore in nine months

Commission payouts register a growth of 23%.
Team Cafemutual May 16, 2018

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

 

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1 Comment
UDAY K Desai · 5 months ago
My hearty request that Pl forward it to SEBI chairman and say him increase IFA brokerage to above level IFA will work and get good increments in your annual perks bit reducing the IFA perks one day you also will not be no more in future
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