Accounting Standard Updates
SSAP 62R Contingent Profit Commission
Today’s video is on the contingent commission in a reinsurance treaty. Accounting for the contingent commission need not be as daunting as it would seem in the actual agreement. Generally, these calculations are simple enough to be kept in a spreadsheet without too much trouble. This video shares an example of a practical way to account the contingent commission. You can also read about it here: https://jlkrosenberger.com/ssap/contingent-profit-commission/
Note: Actual terms vary by reinsurance contact so it is important to read and understand the terms of your particular reinsurance agreement, and of course, if you need help, feel free to give us a call.