The life insurance commission rate and its payment method are two major challenges in life insurances in Iran, according to PRIAO, IRC. While supervisory authorities talk about high rates of commissions in the country, official agents and brokers complain about the inappropriateness of the commissions due to the recent high inflations in the economy. For the sale network, life insurance commissions are usually acceptable during the first three years of sales, however, in the next few years it is dramatically reduced and sometimes it goes down to zero.  

According to the aforementioned challenges, the research report “Comparing Life Insurance Commission Bylaws in Iran and Selected Countries” is aimed at offering thorough and comparative analysis regarding the improvement of supervisory methods for commissions and enhancement of the relevant procedure with respect to the socioeconomic condition of the country.

In this study, the required principles for issuance and renewal of insurance company activity in OECD countries are delineated. Further, the life insurance commissions in other countries like Iran such as UAE, Malaysia, India, and Saudi Arabia and other advanced countries that lack no tariff-based rating like OECD countries are analyzed and compared.

The results of the study indicate that given the socioeconomic conditions of the country and the necessity of determining the life insurance commission rates by the regulatory bodies, tariff-based supervisions on commercial insurance activities must be rather flexible and transparent using more efficient formulas.

Those interested can download the full text of the Persian research report from the following web address: http://www.irc.ac.ir/fa-IR/Irc/4946/Articles/view/14643/1274.