How much commission do insurance agents roughly earn from selling policies?

Agents commission depend on

1) Complexity of the product

2) Tenure of the Premium duration

3) Underwriting Profit of the underlying product

Explanation

1)Generally the more complex the product is, the higher the commission is.

2)If payment is spread over a longer period, agents on average gets a higher commission

3) Health insurance is currently operating at a significant loss. General Insurance on average break even. The profit margin will improve slightly factoring in investment return. Life insurance has the highest margin and insurance companies gave agents a lot of extra incentive on life insurance sales.

But the above matter more to agents than to consumers. Generally consumers should look out for the following instead when it comes to "cost".

1) Total Distribution Cost (Money spent on administration and marketing, including agent commission, that will be deducted upfront)

2) Total expense ratio of the participating funds- the fees you pay to have your money managed annually.

This is because agent commission is just part of your cost, not your total cost.

If anyone is interested to know more about agent compensation structure for career advice do email me at [email protected]​​​

They earn the most from ILP, but it's a terrible product so stay away