Insurance Regulatory Authority (IRA) data showed the net spending on commissions for the period was Sh2.92 billion, representing a decline of 6.6 per cent from Sh3.12 billion reported in the first quarter of 2016.
Insurance agents say underwriters have taken to directly sourcing business from clients resulting in the first quarter 2017 commission dip.
Insurance Regulatory Authority (IRA) data showed the net spending on commissions for the period was Sh2.92 billion, representing a decline of 6.6 per cent from Sh3.12 billion reported in the first quarter of 2016.
“That is not a rosy picture at all for the intermediaries (agents) of this country and even for the economy as a whole.
It becomes a matter of concern for the insurance agents association that our members are earning less from their work,” Bima Intermediaries Association of Kenya (BIAK) chairman Washington Ndegea said on Wednesday.
In an interview during the IRA insurance Open Day in Nairobi, Mr Ndegea said the drop could be due to an increase in direct business to insurance companies, failure by insurance companies in paying commissions as well as excess premiums recovered from clients taking cover on credit.
“Some agents are owed commissions by underwriters. Another issue is life insurance companies terminating agents’ contracts on flimsy issues and refusing to pay them commission. BIAK has been holding meetings with insurance companies over these issues,” said Mr Ndegea.
Consequently, he said, agents are leaving the insurance industry in large numbers despite the IRA carrying out training in a bid to increase the numbers.
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