Last quarter experiencing hick-ups in insurance sale due to revised insurance regulations and commissions

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Last quarter of the fiscal year is always a season for insurance sale as most of the tax payers start hunting for the investment schemes to save their tax. This year the scenario has changed as the insurance companies have come up with revised commission structure for their sales team and the regulations have also been amended by the insurance providers. The insurance sales force which is always on its toes and has been considered the most pro-active sales force is now quite slowed down as they have non-lucrative commission structure.

The insurance is found to be the best investment tool for saving income tax. The government offers exemptions in income tax for those who make investments in certain types of insurance plans. The insurance companies come up with insurance plans for pension, investment and life cover. The insurance sales force finds this time of the year to be the best time for selling insurance as it is in demand. The changed plans and commissions have made this time challenging though.

The amended plans are quite difficult to understand and will require some time to be invested by the insurance agents to learn the products, their benefits and costs. The insurance companies have discontinued their popular products and come up with all new range of insurance plans that have completely new structure.

The older insurance plans were backed with hefty commission structures that amounted to about 50% in some of the cases. The new policies have brought in a completely new structure which fetches only around 15% to 35% of the first premium as the commission.

This sharp reduction in the commission structure and major changes in plans may result into a slow down for the industry even in this sales friendly last quarter.

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