Life insurance distributors see 54% drop in Ulip commission

Life insurance distributors have witnessed a drop of 54 per cent in commission earned from unit-linked insurance policies (Ulips) to Rs 1,733 crore in the financial year 2011-12 (FY12), compared with Rs 3,748 crore in FY11. Ulip commission as a proportion of the total commissions also saw a decrease of 11.13 percentage points to 9.37 per cent in FY12, from 20.5 per cent a year ago. Read more

Life insurance persistency good in first year, not in the long term

Life insurance companies are witnessing healthy growth in persistency in short period of one-year however, that is not the case in long term. As per data on persistency for the financial year 2011-12, insurers registered an average of 64.4 per cent policies renewed in second year, it was 64.3 per cent in last year. However, the average persistency ratio for fifth year was 46.5 per cent, which was 48 per cent in previous year. Read more