Why is reinsurance commission only provided in proportional reinsurance? Solution 20.1 Commission will only apply if commission is payable to the cedant, which normally applies only for proportional reinsurance. Reinsurance will not apply, but retrocession (when a reinsurer buys its own reinsurance) will. Insurance premium tax is not necessarily payable on reinsurance premiums (for example, in the UK). Thank you Regards Amarnath