Home: Difference between revisions
No edit summary |
No edit summary |
||
| (74 intermediate revisions by the same user not shown) | |||
| Line 1: | Line 1: | ||
<!-- |
|||
{{Insert top}} |
|||
<div class="fullscreen-logo"> |
|||
{{Main Page/random quote}} |
|||
[[File:Logo of Insurer Brain.svg|frameless|center|link=]] |
|||
{{Section separator}} |
|||
== biz/books == |
|||
<div class="main-page-menu"> |
|||
'''business''' ▸ {{!}} |
|||
{{Inline expand |sales & marketing ▸}} {{!}} |
|||
{{Inline expand |products ▸}} {{!}} |
|||
{{Inline expand |strategy ▸}} {{!}} |
|||
'''career''' ▸ {{!}} |
|||
{{Inline expand |leadership ▸}} {{!}} |
|||
{{Inline expand |presentation ▸}} {{!}} |
|||
{{Inline expand | productivity ▸|{{read|[[Atomic Habits]]}} {{read|[[The 7 Habits of Highly Effective People]]}} {{read|[[The Power of Habit]]}} {{read|[[see all ▸]]|type=gray}} }} {{!}} |
|||
'''investing''' ▸ {{!}} |
|||
{{Inline expand |value ▸}} {{!}} |
|||
{{Inline expand |growth ▸}} {{!}} |
|||
</div> |
</div> |
||
--> |
|||
'''Did you know?''' |
|||
<!-- {{Main Page/biz/books}} --> |
|||
__NOCACHE__ |
|||
{{Section separator}} |
|||
{{#switch: {{#expr: {{CURRENTTIMESTAMP}} mod 100}} |
|||
| 0 = {{:Definition:Bordereaux}} |
|||
== biz/people == |
|||
| 1 = {{:Definition:Burning cost}} |
|||
<div class="main-page-menu"> |
|||
| 2 = {{:Definition:Commutation (reinsurance)}} |
|||
'''CEOs''' ▸ {{!}} |
|||
| 3 = {{:Definition:Finite reinsurance}} |
|||
{{Inline expand |S&P 500 ▸|{{read|[[Warren Buffett|Berkshire Hathaway]]}} {{read|[[Darren Woods|ExxonMobil]]}} {{read|[[David Ricks|Eli Lilly]]}} {{read|[[Michael Miebach|Mastercard]]}} {{read|[[Brian Moynihan|Bank of America]]}} {{read|[[CEOs of S&P 500 companies|see all ▸]]}} }} {{!}} |
|||
| 4 = {{:Definition:Fronting}} |
|||
{{Inline expand |NASDAQ 100 ▸|{{read|[[Sundar Pichai|Alphabet]]}} {{read|[[Mark Zuckerberg|Meta]]}} {{read|[[Elon Musk|Tesla]]}} {{read|[[Ted Sarandos|Netflix]]}} {{read|[[Ron Vachris|Costco]]}} {{read|[[CEOs of Nasdaq-100 companies|see all ▸]]}} }} {{!}} |
|||
| 5 = {{:Definition:Follow-the-fortunes}} |
|||
{{Inline expand |DOW 30 ▸|{{read|[[Henrique Braun|Coca-Cola]]}} {{read|[[David Solomon|Goldman Sachs]]}} {{read|[[Bob Iger|Walt Disney]]}} {{read|[[Kelly Ortberg|Boeing]]}} {{read|[[Stephen Hemsley|UnitedHealth]]}} {{read|[[CEOs of DJIA companies|see all ▸]]}} }} {{!}} |
|||
| 6 = {{:Definition:Cut-through clause}} |
|||
{{Inline expand |S&P/TSX 60 ▸}} {{!}} |
|||
| 7 = {{:Definition:Binding authority}} |
|||
{{Inline expand |FTSE 100 ▸}} {{!}} |
|||
| 8 = {{:Definition:Clash cover}} |
|||
{{Inline expand |EURO STOXX ▸}} {{!}} |
|||
| 9 = {{:Definition:Attachment point}} |
|||
{{Inline expand |DAX 40 ▸}} {{!}} |
|||
| 10 = {{:Definition:Exhaustion point}} |
|||
{{Inline expand |CAC 40 ▸}} {{!}} |
|||
| 11 = {{:Definition:Reinstatement premium}} |
|||
{{Inline expand |SMI ▸}} {{!}} |
|||
| 12 = {{:Definition:Sliding-scale commission}} |
|||
| 13 = {{:Definition:Profit commission}} |
|||
'''quotes''' ▸ {{!}} |
|||
| 14 = {{:Definition:Loss portfolio transfer}} |
|||
{{Inline expand |business ▸|{{read|[[Notable quotes about accounting|accounting]]}} {{read|[[Notable quotes about advertising | advertising]]}} {{read|[[Notable quotes about customers | customers]]}} {{read|[[Notable quotes about employees|employees]]}} {{read|[[placeholder|marketing]]}} {{read|[[placeholder|sales]]}} {{read|[[Notable quotes about strategy|strategy]]}} {{read|'''[[see all ▸]]'''}} }} {{!}} |
|||
| 15 = {{:Definition:Adverse development cover (ADC)}} |
|||
{{Inline expand|career ▸|{{read|[[leadership]]}} {{read|[[productivity]]}} }} {{!}} |
|||
| 16 = {{:Definition:Aggregate excess-of-loss reinsurance}} |
|||
{{Inline expand|investing ▸|{{read|[[placeholder|value]]}} {{read|[[placeholder|growth]]}} }} {{!}} |
|||
| 17 = {{:Definition:Catastrophe excess-of-loss reinsurance}} |
|||
| 18 = {{:Definition:Per-risk excess of loss reinsurance}} |
|||
</div> |
|||
| 19 = {{:Definition:Risks-attaching basis}} |
|||
| 20 = {{:Definition:Losses-occurring basis}} |
|||
{{Section separator}} |
|||
| 21 = {{:Definition:Claims-made trigger}} |
|||
| 22 = {{:Definition:Signing down}} |
|||
| 23 = {{:Definition:Sunset clause}} |
|||
| 24 = {{:Definition:Utmost good faith}} |
|||
| 25 = {{:Definition:Contra proferentem}} |
|||
| 26 = {{:Definition:Incurred but not reported (IBNR)}} |
|||
| 27 = {{:Definition:Bornhuetter-Ferguson method}} |
|||
| 28 = {{:Definition:Chain-ladder method}} |
|||
| 29 = {{:Definition:Stochastic reserving}} |
|||
| 30 = {{:Definition:Loss development triangle}} |
|||
| 31 = {{:Definition:Credibility factor}} |
|||
| 32 = {{:Definition:Allocated loss adjustment expense (ALAE)}} |
|||
| 33 = {{:Definition:Unallocated loss adjustment expense (ULAE)}} |
|||
| 34 = {{:Definition:Experience modification factor}} |
|||
| 35 = {{:Definition:Industry loss warranty (ILW)}} |
|||
| 36 = {{:Definition:Sidecar (reinsurance)}} |
|||
| 37 = {{:Definition:Collateralized reinsurance}} |
|||
| 38 = {{:Definition:Catastrophe bond (CAT bond)}} |
|||
| 39 = {{:Definition:Retrocession}} |
|||
| 40 = {{:Definition:Surplus share reinsurance}} |
|||
| 41 = {{:Definition:Surplus strain}} |
|||
| 42 = {{:Definition:Surplus relief}} |
|||
| 43 = {{:Definition:Funds withheld reinsurance}} |
|||
| 44 = {{:Definition:Modified coinsurance}} |
|||
| 45 = {{:Definition:Coinsurance penalty}} |
|||
| 46 = {{:Definition:Anti-concurrent causation clause}} |
|||
| 47 = {{:Definition:Continuous trigger}} |
|||
| 48 = {{:Definition:Efficient proximate cause}} |
|||
| 49 = {{:Definition:Horizontal exhaustion}} |
|||
| 50 = {{:Definition:Vertical exhaustion}} |
|||
| 51 = {{:Definition:Sue and labor clause}} |
|||
| 52 = {{:Definition:Honorable engagement clause}} |
|||
| 53 = {{:Definition:Hours clause}} |
|||
| 54 = {{:Definition:Batch clause}} |
|||
| 55 = {{:Definition:Aggregation clause}} |
|||
| 56 = {{:Definition:Omnibus clause}} |
|||
| 57 = {{:Definition:Running down clause}} |
|||
| 58 = {{:Definition:Warehouse-to-warehouse clause}} |
|||
| 59 = {{:Definition:General average}} |
|||
| 60 = {{:Definition:Particular average}} |
|||
| 61 = {{:Definition:Constructive total loss}} |
|||
| 62 = {{:Definition:York-Antwerp Rules}} |
|||
| 63 = {{:Definition:Protection and indemnity (P&I)}} |
|||
| 64 = {{:Definition:Demand surge}} |
|||
| 65 = {{:Definition:Social inflation}} |
|||
| 66 = {{:Definition:Nuclear verdict}} |
|||
| 67 = {{:Definition:Silent cyber}} |
|||
| 68 = {{:Definition:Affirmative cyber coverage}} |
|||
| 69 = {{:Definition:Parametric insurance}} |
|||
| 70 = {{:Definition:Embedded insurance}} |
|||
| 71 = {{:Definition:Takaful}} |
|||
| 72 = {{:Definition:Bancassurance}} |
|||
| 73 = {{:Definition:Microinsurance}} |
|||
| 74 = {{:Definition:Captive insurance company}} |
|||
| 75 = {{:Definition:Cell captive}} |
|||
| 76 = {{:Definition:Protected cell company (PCC)}} |
|||
| 77 = {{:Definition:Reciprocal insurance exchange}} |
|||
| 78 = {{:Definition:Risk retention group (RRG)}} |
|||
| 79 = {{:Definition:Lloyd's syndicate}} |
|||
| 80 = {{:Definition:Reinsurance to close (RITC)}} |
|||
| 81 = {{:Definition:Equitas}} |
|||
| 82 = {{:Definition:Funds at Lloyd's (FAL)}} |
|||
| 83 = {{:Definition:Syndicate-in-a-box (SIAB)}} |
|||
| 84 = {{:Definition:Part VII transfer}} |
|||
| 85 = {{:Definition:Solvent scheme of arrangement}} |
|||
| 86 = {{:Definition:Run-off (insurance)}} |
|||
| 87 = {{:Definition:Demutualization}} |
|||
| 88 = {{:Definition:Depopulation program}} |
|||
| 89 = {{:Definition:Probable maximum loss (PML)}} |
|||
| 90 = {{:Definition:Exceedance probability curve (EP curve)}} |
|||
| 91 = {{:Definition:Realistic disaster scenario (RDS)}} |
|||
| 92 = {{:Definition:Monte Carlo simulation}} |
|||
| 93 = {{:Definition:Copula}} |
|||
| 94 = {{:Definition:Bühlmann model}} |
|||
| 95 = {{:Definition:Cape Cod method}} |
|||
| 96 = {{:Definition:Extra-contractual obligation (ECO)}} |
|||
| 97 = {{:Definition:Loss in excess of policy limits (XPL)}} |
|||
| 98 = {{:Definition:Doctrine of reasonable expectations}} |
|||
| 99 = {{:Definition:Longevity swap}} |
|||
}} |
|||
Latest revision as of 22:46, 12 March 2026
Did you know?
📉 Sliding-scale commission is a commission arrangement in which the percentage paid to an agent, MGA, or reinsurance intermediary adjusts up or down based on the loss ratio or profitability of the book of business they produce. Rather than paying a flat commission regardless of results, this mechanism ties intermediary compensation directly to underwriting outcomes, creating a shared economic interest between the producing entity and the carrier or reinsurer. Sliding-scale structures are especially prevalent in reinsurance treaties and delegated authority programs, where the intermediary exercises significant influence over risk selection.
⚙️ The arrangement is typically defined within a binding authority agreement or treaty contract through a schedule that maps loss ratio bands to corresponding commission rates. For example, if the loss ratio on a treaty stays below 50%, the ceding company might earn a 35% commission; if it deteriorates to 70%, the commission drops to 20%. A provisional commission is usually paid upfront at an estimated midpoint, with adjustments calculated after the experience period closes and actual losses are known. The formula often includes a minimum commission floor — ensuring the intermediary covers basic operating expenses — and a maximum cap that protects the carrier's margin even in exceptionally clean loss years.
🎯 Aligning compensation with profitability makes sliding-scale commissions a powerful governance tool. Carriers granting underwriting authority to MGAs or coverholders use them to incentivize disciplined risk selection and proactive loss control, since every deterioration in the loss ratio directly reduces the intermediary's income. In proportional reinsurance, sliding-scale commissions help balance the economics between the ceding company and the reinsurer, rewarding the cedent for maintaining a profitable portfolio while protecting the reinsurer from subsidizing poor results. For intermediaries, the upside potential of higher commissions on clean books can significantly outperform flat-rate alternatives, making these arrangements attractive to well-managed operations with strong underwriting discipline.
Related concepts: