Insurance Regulator to Review Fresh Agent Commission Rules

The Central Insurance company of Iran agreed to audit its recently announced structure about specialist and brokers’ bonuses, which has brought up criticisms among insurers.

The decision was made during a gathering on Thursday, wherein delegates from insurance agencies and deals network expressed their interests with the CII officials.

Last week the CII officials the new system, setting new covers for specialists and dealers’ bonuses from selling protection strategies throughout everyday life and non-life classes. The new principle was set to become effective as of September 22.

The CII authorities say that the new structure would assist with expanding the business organization’s pay. The business organization, in any case, accept that the new rates are set hurriedly without being completely examined, Risknews announced.

“Agents do not favor the new rates…Policymakers have made the decision without getting agents comments…The new framework is likely to weaken the sales network,” Insurance Agents Union said in a letter shipped off the CII.

Risknews’ studies demonstrate significant decrease in specialists’ income (up to 25%) when the commissions are determined dependent on the new rates.

The number of protection specialists enrolled a yearly development of 17% to arrive at near 64,000 by March 2019, as per the CII. The all out number of parts of protection firms the nation over came to 1,258 by March 2019 – up 6% contrasted with the prior year.

The absolute number of dealers expanded by 35% and came to 834 before the finish of the earlier year.

Iran Insurance Company, the biggest and sole state claimed insurance agency, has the biggest deals network with in excess of 9,000 specialists and 209 branches.

The privatized Asia Insurance Company comes next with 3,200 specialists and 100 branches. Pasargad Insurance Company positions ranks with 73 branches and 2,700 specialists.

Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Getfincorp journalist was involved in the writing and production of this article.

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