Commision Structure

Everyone wants to make as much money as they can when it comes to earning. You work harder, hunt for alternative sources of income, and put in more hours because you want to get that extra money. Money does, after all, contribute to a comfortable life, doesn’t it? Have you given any thought to making money through insurance?

When you sell insurance policies, you earn money in three levels or ways

First year commissions

The first year commission that is due on every insurance policy you sell is the first tier at which you can get paid. You would receive a first-year insurance commission on the premium you bring in, regardless of whether you sell general insurance or life insurance plans.

Renewal commissions

You are incorrect if you believed that insurance coverage only guaranteed a commission for the first year. You receive renewal insurance commission each year when your clients pay the renewal premium and renew their policies. The renewal premium is also used to compute this commission. The idea of a renewal commission is especially important when it comes to life insurance plans with set terms.

Rewards and recognitions

The money that a POSP can make goes beyond commissions. In addition, there is a rewards and recognition program that offers monetary and in-kind presents to participants who satisfy the program’s sales requirements and perform well.

The earnings of POSP depend on the commission they receive on policies sold. The commission rates vary by the insurance company and policy type but typically range from 5 to 15% of the premium paid. A Successful POSP can earn a significant income, especially if they build a large and loyal customer base.

The commission structure for POSp is typically performance-based, meaning POSp who sell more policies earn higher commissions. However, the earnings of an POSp also depend on factors such as the insurance company they place business with, the region they work in, and their level of experience and expertise. Experienced POSp specialising in niche areas such as health or life insurance may also earn higher commissions