The Study On The Commission Rates Motivation In The Chinese Life Insurance Individual Agent

Individual agent has already become the main force in lost of insurance companies by the development of life insurance, and its function is more and more important to life insurance sale. But because the market of life insurance is a typical asymmetric information market, the asymmetric interests between insurance company and individual agent make the interest of insurance company deviated from the action of individual agent. Therefore, that how to encourage employee of insurance company to improve their meritorious deeds and to reduce the loss which asymmetric information risk makes are a major task for life insurance.This paper study the contents of life insurance individual agent system, incentive model, problem of incentive and commission motivation system based on the principal-agent theory. Then the write of this paper construct a model about incentive from the prospect of individual agent, and from this, we know the relationship between the changes of commission rates and the level of effort about individual agent is the key element. At last, we design the most superior model of life insurance individual agent's commission rates.Through the most superior model of motivation, we point out the suggestions of life insurance individual agent's commission motivation system for Chinese state based on the life insurance individual agent's experiences. We wish the Chinese life insurance companies strengthen the motivation and display the life insurance agent's ability effectively.