Question 1

What distinguishes a whole account quota share from an ordinary class-by-class quota share?

Accepted Answer

It applies one fixed cession percentage across the insurer's entire portfolio, rather than a separate treaty per class — A whole account quota share bundles every class of business under one fixed cession percentage and one blended commission, instead of pricing and structuring each line separately.

Question 2

What is a key drawback of a single blended ceding commission across a whole account?

Accepted Answer

It can mask very different profitability between the individual classes bundled inside the account — Because one rate applies to every class regardless of its individual performance, a blended commission can obscure which lines are actually profitable and which are dragging on the account.

Whole Account Quota Share

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