{
  "id": "clause-offset-set-off",
  "type": "clause",
  "languages": {
    "en": {
      "id": "clause-offset-set-off",
      "lang": "en",
      "type": "clause",
      "title": "Offset / Set-off Clause",
      "shortDefinition": "The offset clause allows the cedent and reinsurer to net mutual amounts owed under several contracts against each other instead of settling every payment individually.",
      "synonyms": [
        "Netting clause"
      ],
      "linesOfBusiness": [
        "Reinsurance"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "Reinsurance",
        "Settlement"
      ],
      "relations": {
        "relatedTerms": [
          "clause-insolvency-clause",
          "term-cedent",
          "term-reinsurer"
        ],
        "partOf": [],
        "appliesTo": [
          "term-treaty-reinsurance"
        ],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": {
        "kind": "condition",
        "origin": "reinsurance-market",
        "favours": "neutral",
        "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/offset-set-off-clause/",
      "alternateUrl": "https://hgh.ch/lexikon/de/wissen/klausel/offset-set-off-klausel/",
      "body": "## Purpose\n\nCedents and reinsurers frequently face each other across several contractual relationships at once – as cedent under one treaty and reinsurer under another, or across several underwriting years. The offset clause allows premiums, claims payments and commissions due under these relationships to be netted against each other, with only the balance transferred.\n\n## Effect and limits\n\nNetting reduces administrative burden and settlement risk for smaller payment flows. It becomes critical in insolvency: many jurisdictions restrict or prohibit set-off against an insolvent party to protect equal treatment of creditors, so the clause can conflict with mandatory insolvency law and become partly unenforceable.\n\n## Negotiation and practice\n\nA key negotiation point is whether only amounts under the same contract, or also amounts under different contracts and group companies, may be netted. Regulatory solvency reporting requirements can further constrain the use of offsetting."
    },
    "de": {
      "id": "clause-offset-set-off",
      "lang": "de",
      "type": "clause",
      "title": "Offset-/Set-off-Klausel",
      "shortDefinition": "Die Offset-Klausel erlaubt es Zedent und Rückversicherer, gegenseitige Forderungen aus mehreren Verträgen gegeneinander zu verrechnen, statt jede Zahlung einzeln abzuwickeln.",
      "synonyms": [
        "Verrechnungsklausel"
      ],
      "linesOfBusiness": [
        "Rückversicherung"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "Rückversicherung",
        "Zahlungsverkehr"
      ],
      "relations": {
        "relatedTerms": [
          "clause-insolvency-clause",
          "term-cedent",
          "term-reinsurer"
        ],
        "partOf": [],
        "appliesTo": [
          "term-treaty-reinsurance"
        ],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": {
        "kind": "condition",
        "origin": "reinsurance-market",
        "favours": "neutral",
        "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/offset-set-off-klausel/",
      "alternateUrl": "https://hgh.ch/lexikon/en/knowledge/clause/offset-set-off-clause/",
      "body": "## Zweck\n\nZedent und Rückversicherer stehen häufig in mehreren Vertragsbeziehungen gleichzeitig zueinander – als Zedent in einem Vertrag, als Rückversicherer im anderen, oder mit mehreren Verträgen unterschiedlicher Jahrgänge. Die Offset-Klausel erlaubt, fällige Prämien, Schadenzahlungen und Kommissionen aus diesen Beziehungen gegeneinander zu verrechnen und nur den Saldo zu überweisen.\n\n## Wirkung und Grenzen\n\nVerrechnung reduziert administrativen Aufwand und das Abwicklungsrisiko kleinerer Zahlungsströme. Kritisch wird sie im Insolvenzfall: Viele Rechtsordnungen beschränken oder untersagen Verrechnung gegen eine insolvente Partei, um die Gläubigergleichbehandlung zu sichern – die Klausel kann dann mit zwingendem Insolvenzrecht kollidieren und teilweise unwirksam werden.\n\n## Verhandlung und Praxis\n\nVerhandelt wird insbesondere, ob nur Forderungen aus demselben Vertrag oder auch aus verschiedenen Verträgen und Konzerngesellschaften verrechnet werden dürfen. Aufsichtsrechtliche Vorgaben zur Solvenzberichterstattung können die Verrechnung zusätzlich einschränken."
    }
  }
}