How it works
For a regular premium policy, FYP is a year's premium: a client paying S$250 a month pays S$3,000 of FYP once all 12 payments are in. FYC is that premium times the first-year commission rate, so FYP is what the client pays and FYC is what you're paid on it.
Some targets are set in premium rather than commission. MDRT's premium method is one. Under it, MDRT credits:
- 100% of first-year premium on individual life, critical illness, disability income, accident, health and long-term care policies
- 6% of a single premium, and 6% of any premium above a life policy's annual or target premium
- 10% of first-year premium on group policies
If your commission is paid as earned, MDRT counts only the premium actually received that year. If it's paid in advance for the year, the premium credit is annualised too, and a chargeback reduces it.
Your firm decides what counts as FYP on its statements, including whether riders and top-ups go in, so read the notes on yours before you compare figures with a colleague at another firm.
Worked example, with a made-up client: a policy starts on 1 October at S$250 a month. By 31 December, three premiums are in, so S$750 of FYP has been received that calendar year. The full S$3,000 of FYP lands only once the 12th month is paid, the following September.
Where it shows up in your week
Every closed case starts from its premium. The activity log records a closed case with its annualised premium, and the first-year commission fills in from it.