Abstract：
This paper analyzes the influence of perverse incentives on insurance sales. The optimal choices of insurance agents, insurance consumers’ and the insurers’ are discussed based on dual-agent theory. And the efficient governance of insurance misleading sales is studied. It is concluded that high percentage of commissions and improper payment structure leads to perverse incentives, whose negative effects are amplified by limited cognitive level of insurance of consumers. Insurers are less motivated to optimize incentive contracts with agents. So governance should be strengthened by supervisors.
2015 
