sliding scale commission
A sliding scale commission is a ceding commission that varies inversely with the loss ratio under the reinsurance agreement.
sliding scale commission
A sliding scale commission is a ceding commission that varies inversely with the loss ratio under the reinsurance agreement.
Additional Information
The scales are not always one to one; for example, as the loss ratio decreases by 1 percent, the ceding commission might only increase by 50 basis points.
