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Commission in Reinsurance In reinsurance, a commission is a fee paid to the ceding company by the reinsurer. This commission compensates the ceding company for various expenses related to underwriting, administration, and business acquisition.   Types of Reinsurance Commissions: Ceding Commission: This is the most common type of reinsurance commission. It's a fee paid by the reinsurer to the ceding company to cover costs like underwriting, administration, and business acquisition. The commission is typically expressed as a percentage of the reinsurance premium.   Profit Commission: This is a performance-based commission paid to the ceding company if the reinsured business generates a profit. It's designed to incentivize the ceding company to underwrite profitable business and manage claims effectively.   Brokerage Commission: This commission is paid to a reinsurance broker for their services in arranging reinsurance contracts.   Purpose of Reinsurance Commissions: ...

No Premium No Cover It is a principle in the insurance industry with adoption in most Insurance Acts, or by convention it adheres that the receipt of an insurance premium shall be a condition precedent to a valid contract of insurance and there shall be no cover in respect of an insurance risk unless the premium is paid in advance. An insurance premium cover is an amount of money that an individual or a business pays to the insurance provider periodically to ensure financial guarantee to their lives, property or businesses. To avoid the "no premium, no cover" situation: -Set Up Automatic Payments: This ensures your premiums are paid on time, reducing the risk of lapses. -Review Your Policy: Understand the grace period and reinstatement terms of your policy. -Budget for Premiums: Allocate funds for your insurance premiums as a regular expense in your budget. Remember the "no premium, no cover" principle is a fundamental rule in insurance. Always prioritize ...