Sliding scale commission

{
  "id": "MLC-T-INS-003104",
  "term": "Sliding scale commission",
  "field": "Insurance and risk management",
  "definition": "A method of compensating insurance agents or brokers where the commission rate varies based on factors such as the volume of business written, the profitability of the policies, or the loss ratio of the accounts. This structure incentivizes agents to write higher quality business or achieve specific performance targets. The commission percentage decreases as the loss ratio increases.",
  "url": "https://mlchart.com/terminology/insurance/sliding-scale-commission/"
}