Listen to this article
Recent data from IRDAI reveals that life insurance companies paid an average commission of 4% to distributors for ULIPs. The total commission increased from 3.13% in 2023 to 4.03% in 2024. This includes commission payouts for both new business and renewal premiums.
The industry paid Rs.4,900 crore in commission to insurance intermediaries and agents for selling ULIPs in 2024, while collecting Rs.1.21 lakh crore in ULIP premiums during FY 2024.
In terms of commission as a percentage of premium received, Tata AIA Life topped the list, paying 11.22% to distributors in 2024. Aviva Life ranked second with a commission payout of 8.32%, followed by Shriram Life at 6.65%.
Axis Max Life and HDFC Life occupy the next two spots with ULIP commissions of 4.92% and 4.76%, respectively.
Other insurers in the top 10 include PNB MetLife India, Bajaj Allianz, Kotak Mahindra, SBI Life, and LIC.
Let’s look at the table to know more:
|
Life Insurer |
Commission as % of ULIP premium in 2023-24 |
Total ULIP Premium received in 2023-24 (In Rs. Crore) |
|
TATA AIA Life |
11.22 |
7290.08 |
|
Aviva Life Insurance |
8.32 |
426.11 |
|
Shriram Life |
6.65 |
97.54 |
|
Axis MaxLife |
4.92 |
7184.67 |
|
HDFC Life |
4.76 |
14732.96 |
|
PNB Metlife India |
4.67 |
2025.48 |
|
Bajaj Allianz Life |
4.14 |
7039.21 |
|
Kotak Mahindra Life |
3.43 |
4338.26 |
|
SBI Life |
3.37 |
40626.99 |
|
LIC |
3.35 |
6539.52 |
|
Canara HSBC OBC Life |
3.25 |
2183.07 |
|
IndiaFirst Life |
3.1 |
1534.25 |
|
Star Union Dai-ichi Life |
3.03 |
879.83 |
|
Edelweiss Life |
2.85 |
370.07 |
|
Bharti AXA Life |
2.84 |
303.24 |
|
ICICI Prudential Life |
2.79 |
19590.84 |
|
Aditya Birla Sunlife |
2.6 |
4210.82 |
|
Pramerica Life |
2.37 |
44.80 |
|
Ageas Federal Life |
2.31 |
823.66 |
|
Reliance Nippon Life |
1.42 |
1043.16 |
|
Future Generali India Life |
1 |
129.29 |
|
Bandhan Life |
0.01 |
55.98 |
|
Grand Total |
4.03 |
In absolute terms, SBI Life paid the highest commission on ULIPs, amounting to Rs.1,371 crore in 2024.
Tata AIA Life followed with Rs.818 crore, while HDFC Life took the third spot with Rs.701 crore.
ICICI Prudential Life and Axis Max Life were next, with ULIP commission payouts of Rs.548 crore and Rs.354 crore, respectively.
Let’s take a closer look at the numbers:
|
Life Insurers |
2023-24 |
|
SBI Life |
1370.48 |
|
TATA AIA Life |
817.86 |
|
HDFC Life |
701.01 |
|
ICICI Prudential Life |
547.46 |
|
Axis MaxLife |
353.51 |
|
Bajaj Allianz Life |
291.27 |
|
LIC |
219.03 |
|
Kotak Mahindra Life |
148.87 |
|
Aditya Birla Sunlife |
109.34 |
|
PNB Metlife India |
94.52 |
|
Canara HSBC OBC Life |
70.97 |
|
IndiaFirst Life |
47.49 |
|
Aviva Life Insurance |
35.46 |
|
Star Union Dai-ichi Life |
26.69 |
|
Ageas Federal Life |
19.05 |
|
Reliance Nippon Life |
14.79 |
|
Edelweiss Life |
10.53 |
|
Bharti AXA Life |
8.62 |
|
Shriram Life |
6.48 |
|
Future Generali India Life |
1.29 |
|
Pramerica Life |
1.06 |
|
Bandhan Life |
0.01 |
|
Grand Total |
4895.81 |
Overall, ULIP commissions accounted for 9.5% of the total commission payout in FY 2024.