How much risk does the reinsurance company have?
This depends upon the negotiations between the insurance company and the reinsurance company. Even though it might seem like the reinsurance company should take as little risk as possible, this would mean that the reinsurance company would get as little of the associated premiums as possible.
If the reinsurance company has determined that the business is (or should be) profitable, then it would be in the reinsurance company’s best interest to “assume” as much risk and associated premiums as possible (or “Ceding Fee”).
Involved in the financial services industry for over twenty years, Josh is a nationally known sales and marketing coach for financial advisors and Managing Partner of Spike Sales, LLC, located in Dana Point, California.
Spike Sales provides comprehensive sales and marketing solutions for financial professionals. Josh has been a speaker and content provider for the Fortress and is our Marketing Director. Fortress partners with Spike Sales to handle the management of the day to day marketing functions. Spike Sales team oversees advisor support, web technology management, business development and many other valuable functions needed in today's ever-changing marketplace.