The non-life insurance industry has paid out Rs.5811 crore as commission to their agents and brokers in FY 2015-16, shows IRDAI’s annual report.
The report shows that 27 non-life insurers have witnessed a growth of 11% in their commission expenses as these companies disbursed commission of Rs.5212 in FY 2014-15 to insurance agents and brokers.
While commission expense of PSU non-life insurers stood at Rs.3350 crore or 57% of the total commission expenses of the non-life insurance industry, private players paid out close to Rs.2000 crore as commission to their agents.
Similarly, standalone health insurers and specialized insurers incurred commission expenses of Rs.457 crore and Rs.28 crore respectively.
Among segments, health insurance continued to incur the highest commission expense of Rs.2200 in FY 2015-16. Experts attribute this to rising health insurance premium on account of increase in medical costs and growing acceptance of health insurance policies. While PSU non-life insurers paid out Rs.1114 crore as commission their private and standalone counterparts had incurred commission expenses of Rs.600 crore and Rs.450 crore respectively.
Motor segment retained the second position incurring commission expenses of Rs.1774 crore. PSU insurers again played a dominant part by contributing Rs.984 crore while private insurers had a commission expense of Rs.789 crore.
Commission payouts of the non-life insurance industry
|
Period |
Commission in Rs. crore |
|
2015-16 |
5810 |
|
2014-15 |
5212 |
|
2013-14 |
4888 |
|
2012-13 |
4237 |
|
2011-12 |
3857 |
Source: General Insurance Council
