Private Insurers Show 239% Jump in Motor Commission Payouts

DESPITE CONCERNS RAISED by the Insurance Regulatory and Development Authority of India (Irdai), private sector general insurers reported a 239% jump in commission expenses in the motor insurance segment in fiscal ended March 2024.

- GEORGE MATHEW

Interestingly, private insurers lagged behind public sector counterparts with a low claims ratio.

Private insurers shelled out a whopping ₹16,578 crore to motor insurance service providers (MISPs) as commission during the fiscal ended March 2024 as against ₹4,890 crore in FY2023 while securing fresh businesses.

Interestingly, public sector insurers kept away from the 'commission game' and reported only 31.59% rise in commission expenses at ₹3,099 crore in FY24 as against ₹2,355 crore in FY23, according to the Annual Report of the Irdai.

When it comes to incurred claims ratio, public sector insurers led with 99.57% while private players were far behind with a figure of 73.30%, according to the Irdai report.