Question

What is the formula for calculating the Commission Ratio in non-life insurance companies?

a.

Commission Direct / Net Premium

b.

(Commission Direct + Commission on Reinsurance Accepted) / Net Premium

c.

(Commission Direct - Commission on Reinsurance Ceded) / Net Premium

d.

(Commission Direct - Commission on Reinsurance Cede

Answer: (c).(Commission Direct - Commission on Reinsurance Ceded) / Net Premium Explanation:The Commission Ratio is calculated as (Commission Direct - Commission on Reinsurance Ceded) / Net Premium.

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Q. What is the formula for calculating the Commission Ratio in non-life insurance companies?

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