{
  "id": "clause-salvage-and-subrogation-reinsurance",
  "type": "clause",
  "languages": {
    "en": {
      "id": "clause-salvage-and-subrogation-reinsurance",
      "lang": "en",
      "type": "clause",
      "title": "Salvage and Subrogation Clause (Reinsurance)",
      "shortDefinition": "The salvage and subrogation clause governs how salvage proceeds and recovery rights arising from a loss are shared between cedent and reinsurer.",
      "synonyms": [
        "Recoveries clause"
      ],
      "linesOfBusiness": [
        "Reinsurance"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "Reinsurance",
        "Claims management"
      ],
      "relations": {
        "relatedTerms": [
          "term-ultimate-net-loss",
          "term-treaty-reinsurance",
          "clause-waiver-of-subrogation"
        ],
        "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": "insurer",
        "negotiability": "standard",
        "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/salvage-and-subrogation-clause-reinsurance/",
      "alternateUrl": "https://hgh.ch/lexikon/de/wissen/klausel/salvage-and-subrogation-klausel-rueckversicherung/",
      "body": "## Purpose\n\nFollowing a loss, the cedent may recover value through salvage or pursue recovery from a third party through subrogation, reducing the net loss originally settled. The clause ensures that such proceeds are shared between cedent and reinsurer in the same proportion in which they originally participated in the loss.\n\n## Effect and limits\n\nThe reinsurer is entitled to its share of any recovery but must also bear its proportionate share of the reasonable costs of pursuing that recovery. The clause presumes the cedent actively pursues available recovery options; a waiver of subrogation against a third party can correspondingly reduce the reinsurer's rights.\n\n## Negotiation and practice\n\nPractically relevant issues include the order of distribution in multi-layer reinsurance programmes and the treatment of recovery costs, which are sometimes deducted from the recovery before sharing. A clear clause avoids disputes over allocating multi-year recovery processes to individual treaty years."
    },
    "de": {
      "id": "clause-salvage-and-subrogation-reinsurance",
      "lang": "de",
      "type": "clause",
      "title": "Salvage-and-Subrogation-Klausel (Rückversicherung)",
      "shortDefinition": "Die Salvage-and-Subrogation-Klausel regelt, wie Rettungserlöse und Rückgriffsforderungen aus einem Schaden im Verhältnis zwischen Zedent und Rückversicherer verteilt werden.",
      "synonyms": [
        "Rückgriffsklausel Rückversicherung"
      ],
      "linesOfBusiness": [
        "Rückversicherung"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "Rückversicherung",
        "Schadenmanagement"
      ],
      "relations": {
        "relatedTerms": [
          "term-ultimate-net-loss",
          "term-treaty-reinsurance",
          "clause-waiver-of-subrogation"
        ],
        "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": "insurer",
        "negotiability": "standard",
        "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/salvage-and-subrogation-klausel-rueckversicherung/",
      "alternateUrl": "https://hgh.ch/lexikon/en/knowledge/clause/salvage-and-subrogation-clause-reinsurance/",
      "body": "## Zweck\n\nNach einem Schaden kann der Zedent Vermögenswerte retten (Salvage) oder gegenüber einem Dritten Rückgriff nehmen (Subrogation), der den ursprünglich zu regulierenden Nettoschaden nachträglich reduziert. Die Klausel stellt sicher, dass solche Erlöse zwischen Zedent und Rückversicherer im gleichen Verhältnis verteilt werden, wie sie ursprünglich am Schaden beteiligt waren.\n\n## Wirkung und Grenzen\n\nDer Rückversicherer hat Anspruch auf seinen Anteil der Wiedereinbringung, muss sich aber auch proportional an den angemessenen Kosten der Rückgriffnahme beteiligen. Die Klausel setzt voraus, dass der Zedent die Rückgriffsmöglichkeit aktiv verfolgt; ein Verzicht auf Rückgriff (Waiver of Subrogation) gegenüber einem Dritten kann die Rechte des Rückversicherers entsprechend schmälern.\n\n## Verhandlung und Praxis\n\nPraktisch relevant ist die Reihenfolge der Verteilung bei mehrschichtigen Rückversicherungsprogrammen sowie die Behandlung von Kosten der Rückgriffnahme, die teils vorab von der Wiedereinbringung abgezogen werden. Eine klare Klausel vermeidet Streit über die Zuordnung mehrjähriger Rückgriffsprozesse zu einzelnen Vertragsjahren."
    }
  }
}