{
  "id": "clause-follow-the-fortunes",
  "type": "clause",
  "languages": {
    "en": {
      "id": "clause-follow-the-fortunes",
      "lang": "en",
      "type": "clause",
      "title": "Follow the Fortunes Clause",
      "shortDefinition": "The follow-the-fortunes clause binds the reinsurer to the cedent's fortunes: it must accept the cedent's good-faith, businesslike claims settlements without reopening them.",
      "synonyms": [
        "Follow the settlements"
      ],
      "linesOfBusiness": [
        "Reinsurance"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "Reinsurance",
        "Claims management"
      ],
      "relations": {
        "relatedTerms": [
          "term-cedent",
          "term-treaty-reinsurance",
          "clause-claims-cooperation"
        ],
        "partOf": [],
        "appliesTo": [
          "term-treaty-reinsurance",
          "term-facultative-reinsurance"
        ],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": {
        "kind": "condition",
        "origin": "reinsurance-market",
        "favours": "insured",
        "negotiability": "standard",
        "standardWordings": []
      },
      "legalBasis": [],
      "standards": [],
      "reviewStatus": "expert-reviewed",
      "reviewedBy": "Guido Hesse, Hesse Group Holding AG",
      "lastReviewed": "2026-09-04",
      "version": "0.2.0",
      "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/follow-the-fortunes/",
      "alternateUrl": "https://hgh.ch/lexikon/de/wissen/klausel/follow-the-fortunes/",
      "body": "## Purpose\n\nThe follow-the-fortunes clause binds the reinsurer to the cedent's fortunes: reinsurance is meant to put the cedent economically in the position it would hold without the cession. If the cedent had to re-prove every settlement towards the reinsurer, the risk transfer would lose its value. The clause therefore creates binding effect for good-faith, contract-compliant decisions.\n\n## Effect and limits\n\nThere is no binding effect for payments outside the coverage of the original or the reinsurance contract (ex gratia without agreement), for fraud, or for gross disregard of proper claims practice. The exact scope differs between jurisdictions and clause wordings; follow-the-fortunes (risk determination) and follow-the-settlements (loss settlement) are used interchangeably in some markets and distinguished in others.\n\n## Negotiation and practice\n\nCombined with claims cooperation clauses, the rule of thumb is: the more control rights the reinsurer stipulates, the narrower the scope of follow the fortunes becomes."
    },
    "de": {
      "id": "clause-follow-the-fortunes",
      "lang": "de",
      "type": "clause",
      "title": "Follow-the-Fortunes-Klausel",
      "shortDefinition": "Die Follow-the-Fortunes-Klausel bindet den Rückversicherer an die Schicksale des Zedenten: Er muss dessen gutgläubige, sachgerechte Regulierungsentscheide mittragen, ohne sie neu aufzurollen.",
      "synonyms": [
        "Follow the Settlements",
        "Schicksalsteilungsklausel"
      ],
      "linesOfBusiness": [
        "Rückversicherung"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "Rückversicherung",
        "Schadenmanagement"
      ],
      "relations": {
        "relatedTerms": [
          "term-cedent",
          "term-treaty-reinsurance",
          "clause-claims-cooperation"
        ],
        "partOf": [],
        "appliesTo": [
          "term-treaty-reinsurance",
          "term-facultative-reinsurance"
        ],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": {
        "kind": "condition",
        "origin": "reinsurance-market",
        "favours": "insured",
        "negotiability": "standard",
        "standardWordings": []
      },
      "legalBasis": [],
      "standards": [],
      "reviewStatus": "expert-reviewed",
      "reviewedBy": "Guido Hesse, Hesse Group Holding AG",
      "lastReviewed": "2026-09-04",
      "version": "0.2.0",
      "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/follow-the-fortunes/",
      "alternateUrl": "https://hgh.ch/lexikon/en/knowledge/clause/follow-the-fortunes/",
      "body": "## Zweck\n\nDie Follow-the-Fortunes-Klausel bindet den Rückversicherer an die Schicksale des Zedenten: Rückversicherung soll den Zedenten wirtschaftlich so stellen, wie er ohne Zession stünde. Müsste der Zedent jede Regulierung gegenüber dem Rückversicherer neu beweisen, verlöre der Risikotransfer seinen Wert. Die Klausel schafft deshalb eine Bindungswirkung für gutgläubige, vertragskonforme Entscheide.\n\n## Wirkung und Grenzen\n\nKeine Bindung besteht bei Zahlungen ausserhalb der Deckung von Original- oder Rückversicherungsvertrag (ex gratia ohne Vereinbarung), bei Betrug oder grober Missachtung ordentlicher Schadenpraxis. Die genaue Reichweite unterscheidet sich zwischen Rechtsordnungen und Klauselfassungen; Follow-the-Fortunes (Risikobeurteilung) und Follow-the-Settlements (Schadenregulierung) werden in der Praxis teils synonym, teils differenziert verwendet.\n\n## Verhandlung und Praxis\n\nIn Kombination mit Claims-Cooperation-Klauseln gilt: Je mehr Kontrollrechte sich der Rückversicherer ausbedingt, desto enger wird der Anwendungsbereich der Schicksalsteilung."
    }
  }
}