The 1200% Rule and Second-Year Commission Regulations: A New Challenge and Growth Opportunity for the GA Industry
Regulatory tightening in the insurance industry often brings significant disruptions, but sometimes it can also lead to positive changes. Regulatory tightening in the insurance industry often brings significant disruptions, but sometimes it can also lead to positive changes. The recently implemented '1200% rule' and 'second-year commission regulations' are perfect examples of this. These regulations have helped create a healthier market environment, strengthen competitiveness, and provide new growth opportunities for the General Agency (GA) industry. In this post, we will explore the impact of the 1200% rule and second-year commission regulations on the GA industry. 1. Decrease in 'Eat and Run' Cases and Reduction in Manipulated Contracts: A New Order for the GA Industry The '1200% rule' is a regulation that limits the recruitment commission that insurance agents can receive in the first year to a maximum of 1200% of the insurance premium. This measure w...