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What is reinsurance commission?
Remuneration paid by the reinsurer to the ceding company. It is used to share and compensate the expenses required by the company to attract business and management. The calculation method of fixed commission rate is mostly used for reinsurance expenses, that is, regardless of the size and quality of the contract business, the reinsurance ceding company will charge reinsurance expenses to the reinsurance acceptor according to a certain proportion of reinsurance premiums. This method is simple in calculation and widely used. Some reinsurance contracts charge reinsurance commission by calculating progressive percentage, that is, the handling fee is adjusted according to the level of payout ratio and inversely proportional to payout ratio. Although the cost of progressive calculation is fair and reasonable, the calculation is more complicated.