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%.
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%.