BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The accepting company pays a commission to the ceding company on the reinsurance ceded. This is called a ceding commission, and covers administrative costs, underwriting, and other related expenses. The ceding company can recover part of any claim from the accepting company.

Detailed explanation-2: -The primary insurers are called as the ceding company while the reinsurer is referred to as accepting company. The reinsurance company would receive the payment of a premium in exchange for the risk it is going to assume and is liable to pay the claim for the risk it has taken up.

Detailed explanation-3: -A profit commission is another kind that could be part of the reinsurance agreement. The Profit Commission could be seen as an incentive from the reinsurer to the Ceding Company that consists in paying back a part of the Treaty profitability.

Detailed explanation-4: -Ceding commission is the remuneration paid to the ceding insurer/reinsurer by the assuming reinsurer (either entity could be a captive), compensating the cedent for various expenses that it incurs, such as underwriting and business acquisition expenses.