Frankly, I do not know the ratio of Premiums vs Compensation.
However, what is obvious is that the Premiums collected > Compensation paid out, every year.
You can see this in the share performance of every insurer. It's not that insurance companies are not regulated, it's just that insurance, as pointed out by MUM, is based off of the law of large numbers.

I would like to help you see that there are no "bad" insurance policies. What works for you, may or may not be a good fit for your neighbor despite, presumably, very similar lifestyles.
Why leh?
Well, frankly you have your order or priorities, objectives, and your neighbor has his/hers.
That's really...that.

If the insurance company is not honoring the policy contract terms, you may file a suit against the respective company.
I think that is quite clear to everyone.
I mean... the agent can sell you an orange and call it an apple. Has this happened to you personally?
With the new Balance Score Card system in place, such agents are being flushed out of the system.
I guess this info should help you feel more confident when dealing with your agent.

Yes, the turnover rate for insurance agents is quite high to say the least. It is a tough career as we are solely living off our commissions. Yes, many agents don't get to pass the first 2 years. And in many instances, the first 2 years is when we exhaust our natural market, namely our friends and family.
Now why do you think that is?

On the flip side, there are career agents like myself and many others here who obviously make a living off our commissions.
Quite obviously a stark difference from the above.
Now why do you think that is?