What term describes returning a portion of premiums back to clients as a marketing strategy?

The term describing the practice of returning a portion of premiums back to clients as a marketing strategy is rebating. In the insurance industry, rebating is a method used by agents or brokers to attract clients by offering them a financial incentive in the form of a part of the premium they paid. This can make the policy more appealing compared to competitors’ offerings.

Rebating can serve as a way to distinguish an agent or insurer's services in a market where many competitors are vying for consumers' attention. However, it’s important to note that the legality and acceptance of rebating can vary depending on state regulations, and some states may impose restrictions or prohibitions against such practices to maintain fairness and protect consumers.

The other terms provided refer to different concepts. Inducement typically implies persuading someone to do something through incentives, but may not explicitly refer to the return of premiums. Commission splitting refers to the division of commissions among agents but does not involve the return of premiums to clients. Persuasion, while related to the sales process, does not pertain specifically to the act of returning money to clients. Hence, the appropriate choice in this context is rebating.