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  • Insurance Mid size general insurers are the best pay masters

    Mid size general insurers are the best pay masters

    On the other hand, the majority of large players have single digit commission payout structure, reveals a report released by the General Insurance Council (GIC).
    Nishant Patnaik and Riddhima Bhatnagar Aug 28, 2024

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    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:

    General insurers

    Gross written premium (in Rs. crore)

    Net commission (in Rs. crore)

    % or commission
    payout with respect
    to the total gross
    written premium

    Raheja QBE

    316

    75

    24%

    Shriram

    3052

    659

    22%

    Go Digit

    9016

    1888

    21%

    Magma HDI

    3295

    660

    20%

    Royal Sundaram

    3825

    686

    18%

    Liberty

    2187

    385

    18%

    Cholamandalam MS

    7598

    1152

    15%

    Kotak Mahindra

    1598

    218

    14%

    Tata AIG

    15423

    2017

    13%

    Future Generali India

    5003

    623

    12%

    ICICI Lombard

    25594

    3089

    12%

    Navi

    72

    7

    9%

    Acko

    1870

    167

    9%

    IFFCO-Tokio

    10021

    894

    9%

    National Assurance

    15753

    1200

    8%

    Reliance

    11830

    864

    7%

    The New India Assurance

    41996

    3008

    7%

    Edelweiss

    851

    58

    7%

    United India

    20194

    1340

    7%

    SBI

    12731

    720

    6%

    HDFC Ergo

    18802

    915

    5%

    The Oriental

    19242

    880

    5%

    Bajaj Allianz

    20630

    644

    3%

    Universal Sompo

    4638

    20

    0%

    Kshema

    569

    -1

    0%

    Total

    2,56,104

    22,169

    9%

     

    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:

    Health insurer

    Gross written premium (in Rs. crore)

    Net commission (in Rs. crore)

    % or commission
    payout with respect
    to the total gross
    written premium

    ManipalCigna

    1,691

    343

    20%

    Care

    7,022

    1,070

    15%

     Niva bupa

    5,608

    748

    13%

    Star Health & Allied Insurance

    15,254

    1,854

    12%

    Aditya Birla

    3,701

    449

    12%

    Total

    33,277

    4,465

    13%

     

    Have a query or a doubt?
    Need a clarification or more information on an issue?
    Cafemutual welcomes all mutual fund and insurance related questions. So write in to us at newsdesk@cafemutual.com

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    2 Comments
    Anam Ansari · 1 month ago `
    Please confirm if this payout are for the first year or renewal(2nd, 3rd, 4th ....year)

    This is incomplete info and confusing. Awaiting response
    Nishant Patnaik · 3 weeks ago
    In general and health insurance, there is no concept of first year or second year commission. The structure remains uniform across the life of such policies.
    Reply
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