As high as 40% of the policy premium in the first year on traditional products while 7-12% in Ulips, are paid to agents as commisssion. But once the policy gets running, the agent loses interest in serving the policy holder. So, to ensure that customers are serviced, the commissions could be rear-ended and paid at the later stages of the policy, than in early years. “Korea has found that front-ending commision has led to unhealthy practices. So, the question is should we rear end it. A lot depends on the sales history and culture of the country,” Narayan added.
http://economictimes.indiatimes.com/personal-finance/insurance/insurance-news/irda-plans-end-to-deceptive-policies-upfront-commission/articleshow/10470480.cms
