Mid size general insurers are the best pay masters

An analysis of the data released by General Insurance Council (GIC), a trade body of non-life and health insurance companies, reveals that mid-sized general insurers have better commission payout structure than their larger counterparts.

The study shows that Raheja QBE, Shriram General and Go Digit are the top three in terms of payout structure.

Raheja QBE paid a net commission of 24% of its total gross written premium in FY 2024.  While Shriram General has a commission payout structure of 22%, such a proportion was 21% for Go Digit.

We have calculated commission payout structure by dividing the gross written premium by the net commission to agents and intermediaries.

General insurers who have commission payout structure of over 15% are Magma HDI, Royal Sundaram, Liberty and Cholamandalam MS.

Among top players, only Kotak Mahindra, Tata AIG and ICICI Lombard have commission payout structures in the double digit. All other top players including PSU players have a single digit commission payout structure like National Assurance, Reliance, SBI, New India and Oriental. 

Bajaj Allianz and HDFC Ergo have the least commission payout structure of less than 5%.

Overall, the general insurance companies paid 9% of the total gross written premium as commission payout to agents and brokers.

Here is the commission payout structure of general insurers in FY24:

Further, among standalone health insurers, ManipalCigna topped the list with commission payout structure of 20% in FY 2024.

Care and Nipa Bupa paid 15% and 13% of the total gross written premium as commission in FY 2024.

All standalone health insurers have better payout structure. These companies paid 13% of the total gross written premium as the commission in FY 2024.

Here is the commission payout structure of standalone health insurers in FY24: