Profit Commission or Contingent Commission

An additional commission payable by the Reinsurers to the Ceding Company as a percentage of profits derived from the business. It is a pre-determined percentage of the reinsurer’s net profits after a charge for the reinsurer’s overhead, derived from the subject treaty.Overriding Commission : Commission payable in addition to the original commission particularly under retrocession treaties.Sliding Scale Commission : A ceding commission which varies inversely with the loss ratio under the reinsurance agreement, the scales are not always one to one; for example, as the loss ratio decreases by 1%, the ceding commission might increase only 5%.Super Profit Commission : Overriding profit commission payable in addition to the original profit commission particularly under retrocession and/or reciprocal treaties.Reinsurance, Commission Reinsurance Intermediary : (a) Agent’s commission: A percentage of premium paid to an agent for insurance placement services (b) Brokerage: A percentage or a fee paid to a broker for insurance or reinsurance placement services.

Leave a Reply

Your email address will not be published. Required fields are marked *