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.

As a pricing factor (along with expenses and losses) the return the reinsurer expects from the degree of net risk taken. As with any investment, the reinsurer expects a larger return from risky than safe investments.

Pro-rata or Risk Sharing Treaty : Which provide for sharing of risk between the Ceding Company and the Reinsurer, on lines similar to those under the facultative method.

Tentative amounts applicable to either rate, premium or commission set at the start of the contract and subject to subsequent adjustment.