{
  "id": "clause-annual-aggregate-deductible",
  "type": "clause",
  "languages": {
    "en": {
      "id": "clause-annual-aggregate-deductible",
      "lang": "en",
      "type": "clause",
      "title": "Annual Aggregate Deductible Clause",
      "shortDefinition": "The annual aggregate deductible clause sets a total annual retention that the cedent must first absorb from the sum of all losses falling under the non-proportional treaty before the reinsurer becomes liable.",
      "synonyms": [
        "Aggregate deductible clause"
      ],
      "linesOfBusiness": [
        "Reinsurance"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "Reinsurance",
        "Retention"
      ],
      "relations": {
        "relatedTerms": [
          "clause-reinstatement",
          "term-nichtproportionale-rueckversicherung"
        ],
        "partOf": [],
        "appliesTo": [
          "term-nichtproportionale-rueckversicherung"
        ],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": {
        "kind": "limitation",
        "origin": "reinsurance-market",
        "favours": "insurer",
        "negotiability": "negotiable",
        "standardWordings": []
      },
      "legalBasis": [],
      "standards": [],
      "reviewStatus": "expert-reviewed",
      "reviewedBy": "Guido Hesse, Hesse Group Holding AG",
      "lastReviewed": "2026-09-04",
      "version": "0.1.0",
      "updated": "2026-09-03",
      "generated": {
        "by": "cursor-agent/claude-sonnet-5",
        "at": "2026-09-03T00:00:00.000Z"
      },
      "verified": [
        {
          "by": "human:ghesse",
          "at": "2026-09-04T00:00:00.000Z",
          "method": null
        }
      ],
      "staleAfter": null,
      "url": "https://hgh.ch/lexikon/en/knowledge/clause/annual-aggregate-deductible-clause/",
      "alternateUrl": "https://hgh.ch/lexikon/de/wissen/klausel/annual-aggregate-deductible-klausel/",
      "body": "## Purpose\n\nWhile an ordinary retention applies per loss or per occurrence, the annual aggregate deductible sums up all losses eligible under the non-proportional treaty over the treaty year. Only once that sum exceeds the agreed aggregate retention does the reinsurer's liability begin – protecting it against a high frequency of medium-sized losses that would each individually fall below a normal per-occurrence retention.\n\n## Effect and limits\n\nThe clause systematically shifts frequency risk to the cedent and is therefore usually combined with a lower per-loss retention. It is mainly used on stop-loss and aggregate XL covers and in conjunction with reinstatement clauses, since both mechanisms structure the overall liability for the treaty year.\n\n## Negotiation and practice\n\nThe level of the aggregate deductible is calibrated on the basis of historical loss frequency and severity distribution; set too low, the cover loses its non-proportional character; set too high, it becomes economically worthless."
    },
    "de": {
      "id": "clause-annual-aggregate-deductible",
      "lang": "de",
      "type": "clause",
      "title": "Annual-Aggregate-Deductible-Klausel",
      "shortDefinition": "Die Annual-Aggregate-Deductible-Klausel legt einen jährlichen Gesamtselbstbehalt fest, den der Zedent aus der Summe aller unter den nicht-proportionalen Vertrag fallenden Schäden zunächst selbst tragen muss, bevor der Rückversicherer haftet.",
      "synonyms": [
        "Jahresgesamtselbstbehalt"
      ],
      "linesOfBusiness": [
        "Rückversicherung"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "Rückversicherung",
        "Selbstbehalt"
      ],
      "relations": {
        "relatedTerms": [
          "clause-reinstatement",
          "term-nichtproportionale-rueckversicherung"
        ],
        "partOf": [],
        "appliesTo": [
          "term-nichtproportionale-rueckversicherung"
        ],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": {
        "kind": "limitation",
        "origin": "reinsurance-market",
        "favours": "insurer",
        "negotiability": "negotiable",
        "standardWordings": []
      },
      "legalBasis": [],
      "standards": [],
      "reviewStatus": "expert-reviewed",
      "reviewedBy": "Guido Hesse, Hesse Group Holding AG",
      "lastReviewed": "2026-09-04",
      "version": "0.1.0",
      "updated": "2026-09-03",
      "generated": {
        "by": "cursor-agent/claude-sonnet-5",
        "at": "2026-09-03T00:00:00.000Z"
      },
      "verified": [
        {
          "by": "human:ghesse",
          "at": "2026-09-04T00:00:00.000Z",
          "method": null
        }
      ],
      "staleAfter": null,
      "url": "https://hgh.ch/lexikon/de/wissen/klausel/annual-aggregate-deductible-klausel/",
      "alternateUrl": "https://hgh.ch/lexikon/en/knowledge/clause/annual-aggregate-deductible-clause/",
      "body": "## Zweck\n\nWährend eine gewöhnliche Priorität je Einzelschaden oder je Ereignis gilt, summiert der Annual Aggregate Deductible sämtliche anrechenbaren Schäden eines Vertragsjahrs auf. Erst wenn diese Summe den vereinbarten Gesamtselbstbehalt überschreitet, beginnt die Haftung des Rückversicherers – dies schützt ihn vor einer hohen Frequenz mittelgrosser Schäden, die einzeln unterhalb einer normalen Priorität blieben.\n\n## Wirkung und Grenzen\n\nDie Klausel verschiebt das Frequenzrisiko systematisch zum Zedenten und wird deshalb meist mit einer niedrigeren Einzelschadenpriorität kombiniert. Sie kommt vor allem bei Stop-Loss- und Aggregate-XL-Deckungen sowie im Zusammenspiel mit Wiederauffüllungsklauseln zur Anwendung, da beide Mechanismen die Gesamthaftung des Vertragsjahrs strukturieren.\n\n## Verhandlung und Praxis\n\nDie Höhe des aggregierten Selbstbehalts wird auf Basis der historischen Schadenfrequenz und -grössenverteilung kalibriert; zu niedrig gesetzt, verliert die Deckung ihren nicht-proportionalen Charakter, zu hoch gesetzt, wird sie wirtschaftlich wertlos."
    }
  }
}