Commission Structure of Insurance Agents REVEALED

[corydorus]

Probably not in absolute amount since accident plan can be in $XX only and even with a whopping 30% commision is still ...

[CityFarmer]

I got more insight on the commission structure from a veteran of insurance industrial.

The actual commission paid is much higher than stated in this posting, the missing part is the over-riding commission from supervisor (immediate boss) and manager (boss of boss).

The commission paid to the agent is quite similar as in this posting. 50% annual premium in 1st year, and approx 40% in the next 5 years, which bring total of approx 90% of annual premium as commission for 6 years.

But the commission does not stop there, there are over-riding commission paid to supervisor and manager, which cost another approx 70% of annual premium in the similar 6 years period.

In total, it is approx 160% annual premium paid as cost to agent and his/her bosses alone, with only paper work service most of the time

There is a good reason for MAS to review the commission system of insurance industrial.

[CityFarmer]

The latest update after the commission review, nothing seems been changed, at least no major changes.

No commission ban for financial advisers: Panel
Switching to fee-based model might lead to S'poreans being underserved: Panel chairman
by Wong Wei Han

SINGAPORE - A panel set up to review the financial advice industry has rejected an outright ban on commission for financial advisers while also proposing other measures that would help consumers make better-informed choices and be able to buy some products directly from the provider.

These are among the 28 recommendations announced yesterday by the Financial Advisory Industry Review (FAIR) panel which is aiming to find ways to lower costs for consumers while improving the quality of financial advisory services, among other things.
-- TODAYonline

http://www.todayonline.com/Business/EDC1...ers--Panel