Life insurance companies expensed 5.5 billion more for agent commission, half of the commission has reduced

Kathmandu : Life insurance companies have released their financial statements for the second quarter of the current fiscal year 2023/024, (2080.081 B.S). The life insurance companies currently under management have spent 5 billion 88 crore 32 lakh 58 thousand rupees on agent commission in 6 months of the current financial year.

In the same period of the last financial year, the company spent 5.81 billion 82 million rupees on agent commission. Compared to the last financial year, the agent commission of the company has increased by 1.12 percent.

Although the agent commission has generally increased, the commission of 8 companies has decreased. Om Bahadur KC, senior agency manager of Nepal Life, said that due to the complicated examination system of the Nepal Insurance Authority and the economic recession, the agent’s commission has decreased recently. He said, ‘One agent, one company means that agent commission expenses have decreased. In addition to this, due to the fact that the online examination system taken by the insurance authority has become more complicated, such problems have occurred due to the migration of agents.

KC’s argument was that the old agents did not renew their licenses again because the commission expenses were reduced. The old agent does not seem to have renewed his license. Old investors are not accepting the system of having to give an exam while renewing the license. This is also the reason why the agent commission is decreasing,” KC said.

How much did you spend on agent commission in this quarter?As of this quarter, Nepal Life, which has the highest turnover among life insurance companies, is ahead. The company has spent 1.49 billion rupees on agent commissions during this quarter.

The second is National Life Insurance Company. The company has spent 767.4 million rupees on agent commission during this quarter.

The third is Life Insurance Corporation (Nepal). The company has spent 669 million rupees on agent commission till this period.

According to the data published by the companies, Himalayan Life Rs.65 crore 63 lakh, Suryajyoti Life Rs. 37 crore 85 lakh, Asian Life Rs.32 crore 21 lakh, Sanima Reliance Rs.28 crore 79 lakh, Citizen Life Rs.27 crore 55 lakh, Met Life Rs.23 crore 93 lakh The money is spent on agent commission.

Similarly, Prabhu Mahalaxmi has spent Rs.238 million, Reliable Nepal.Rs 2186 million, IME Life has spent Rs 2044 million and Sun Nepal Life has spent Rs.149 million on agent commission.

Agent commission of 8 companies decreased :

Based on the financial statements up to the second quarter, the agent commission of 8 companies has decreased. By this period, Citizen Life’s agent commission has decreased by 19.61 percent compared to the previous financial year.

The company spent Rs.34 crore 27 lakh on agent commission in the last financial year and has reached Rs.27 crore 55 lakh in the same period of this financial year.

Similarly, the agent commission of Reliable Nepal decreased by 11.87 percent to 2186 million rupees, Sun Nepal Life decreased by 9.80 percent to 149 million rupees and IME Life decreased by 9.01 percent to 204 million rupees.

Also, Asian Life decreased by 8.45 percent to Rs.322.1 million, Himalayan Life decreased by 8.03 percent to Rs.656.3 million, LIC Nepal decreased by 7.16 percent to Rs.669 million and Nepal Life decreased by 2.98 percent to Rs.1 billion. 49 crore 22 lakh rupees have been spent through agent commission.

How much did the other five increase?

Out of the currently operating life insurance companies, only five companies have seen an increase in agent commission. Sanima Reliance is among the companies that increase the agent commission the most. The agent commission of the company increased by 97.05 percent to Rs.280.79 million.

Similarly, agent commission increased by 56.93 percent of Prabhu Mahalaxmi Life, 46.86 percent of Suryajyoti Life, 3.79 percent of National Life and 3.29 percent of Met Life.