Life Insurance Agents Receive Rs 3.59 Billion in Commission in First Quarter

Kathmandu – Life insurance agents across the country received a total commission of Rs 3.59 billion in the first three months of the current fiscal year, according to the latest industry data. This marks a 10.52 percent increase compared to the Rs 3.24 billion distributed during the same period last fiscal year.

Insurance companies allocate a fixed percentage of premiums to agents as commission, based on policy sales. As per industry norms, companies offer 25 percent commission in the first year, 15 percent in the second year, and 5 percent for the following eight years. The rise in commissions this quarter reflects the overall expansion in life insurance business volume.

In terms of individual company payouts, Nepal Life Insurance topped the list, distributing Rs 960.4 million to its agents. National Life followed with Rs 477.1 million, while Himalayan Life stood third with Rs 352.2 million. Similarly, LIC Nepal paid Rs 245.8 million, and Suryajyoti Life paid Rs 218.4 million, securing fourth and fifth positions respectively.

Other insurers also made substantial commission payments. Asian Life distributed Rs 190.2 million, Sanima Reliance Life paid Rs 171.1 million, Reliable Nepal Life paid Rs 137.1 million, and Met Life paid Rs 136.9 million. Likewise, IME Life paid Rs 131.4 million, Prabhu Mahalaxmi Life paid Rs 127 million, and Sun Nepal Life distributed Rs 91.3 million. The government-owned Rastriya Jeevan Beema Company paid Rs 49.2 million in commissions.

The data also reveals notable growth rates in commission payouts. Citizen Life recorded the highest growth with a 21.34 percent increase in commissions compared to the same period last year. IME Life followed closely with 21.33 percent, while LIC Nepal posted a 20.36 percent rise. Met Life and Sanima Reliance Life reported growth rates of 14.64 percent and 14.12 percent, respectively.

Other companies showing positive growth include National Life with 11.98 percent, Prabhu Mahalaxmi with 11.51 percent, Asian Life with 10.63 percent, Nepal Life with 10.24 percent, Reliable Nepal Life with 9.27 percent, Himalayan Life with 2.63 percent, Sun Nepal Life with 1.54 percent, and the government-owned National Life Insurance Company with 1.16 percent. However, Suryajyoti Life registered a 3.72 percent decline in commission payouts.