Please can someone help me understand the 3.8 and 3.9 section? I have been having difficulty understanding this section re how commission comes into the picture and how proportional insurance helps?
Hi Kanishka Can you be more specific about which bit you don't follow? Reinsurance commission is paid by the reinsurer to the cedant, largely to reflect the fact that the cedant has had to sell the business in the first place, yet the reinsurer gets a proportion of premiums but only pays a proportion of claims (and not expenses). Ian
