{
  "id": "clause-stability-index-clause",
  "type": "clause",
  "languages": {
    "en": {
      "id": "clause-stability-index-clause",
      "lang": "en",
      "type": "clause",
      "title": "Stability / Index Clause",
      "shortDefinition": "The stability clause indexes the retention and limit of a non-proportional treaty to an agreed index, keeping the real coverage effect stable over the life of the treaty against inflation.",
      "synonyms": [
        "Stabilization clause"
      ],
      "linesOfBusiness": [
        "Reinsurance"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "Reinsurance",
        "Premium structuring"
      ],
      "relations": {
        "relatedTerms": [
          "term-excess-of-loss",
          "term-ultimate-net-loss"
        ],
        "partOf": [],
        "appliesTo": [
          "term-excess-of-loss",
          "term-nichtproportionale-rueckversicherung"
        ],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": {
        "kind": "premium",
        "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/stability-index-clause/",
      "alternateUrl": "https://hgh.ch/lexikon/de/wissen/klausel/stability-index-klausel/",
      "body": "## Purpose\n\nOn multi-year or long-tail excess of loss treaties, inflation can erode the real value of an originally high retention, leaving the reinsurer bearing losses that were never intended to fall below the economic threshold. The stability or index clause links the retention and limit to a wage or price index and adjusts both figures at the time of loss accordingly.\n\n## Effect and limits\n\nAs long as the index movement stays within an agreed corridor, the treaty terms remain unchanged; adjustment only occurs beyond that band, avoiding constant recalculation for minor fluctuations. The clause affects only the monetary amounts stated in the treaty, not the period of cover or the scope of perils.\n\n## Negotiation and practice\n\nThe choice of index (a general wage index, a sector-specific construction cost index, etc.), the base date and the width of the corridor are the key negotiation points. The clause is particularly relevant for long-tail lines such as liability, where years can pass between loss occurrence and settlement."
    },
    "de": {
      "id": "clause-stability-index-clause",
      "lang": "de",
      "type": "clause",
      "title": "Stability-/Index-Klausel",
      "shortDefinition": "Die Stability-Klausel passt Priorität und Haftungslimit eines nicht-proportionalen Vertrags an einen vereinbarten Index an, um die reale Deckungswirkung über die Vertragslaufzeit hinweg gegen Inflation zu stabilisieren.",
      "synonyms": [
        "Indexklausel Rückversicherung"
      ],
      "linesOfBusiness": [
        "Rückversicherung"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "Rückversicherung",
        "Prämiengestaltung"
      ],
      "relations": {
        "relatedTerms": [
          "term-excess-of-loss",
          "term-ultimate-net-loss"
        ],
        "partOf": [],
        "appliesTo": [
          "term-excess-of-loss",
          "term-nichtproportionale-rueckversicherung"
        ],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": {
        "kind": "premium",
        "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/stability-index-klausel/",
      "alternateUrl": "https://hgh.ch/lexikon/en/knowledge/clause/stability-index-clause/",
      "body": "## Zweck\n\nBei mehrjährigen oder langlaufenden Exzedentenverträgen kann Inflation dazu führen, dass eine ursprünglich hoch angesetzte Priorität real erodiert und der Rückversicherer Schäden trägt, die eigentlich unterhalb der wirtschaftlich gemeinten Schwelle liegen. Die Stability- oder Index-Klausel koppelt Priorität und Höchsthaftung an einen Lohn- oder Preisindex und passt beide Werte zum Schadenzeitpunkt entsprechend an.\n\n## Wirkung und Grenzen\n\nSolange die Indexänderung eine vereinbarte Bandbreite (Korridor) nicht überschreitet, bleibt der Vertrag unverändert; erst darüber hinaus wird angepasst – dies vermeidet ständige Neuberechnung bei kleinen Schwankungen. Die Klausel wirkt nur auf die im Vertrag genannten Beträge, nicht auf die Deckungsdauer oder den sachlichen Umfang.\n\n## Verhandlung und Praxis\n\nWahl des Index (allgemeiner Lohnindex, branchenspezifischer Baukostenindex etc.), Bezugszeitpunkt und Korridorbreite sind die zentralen Verhandlungspunkte. Bei Langschadensparten (Haftpflicht) ist die Klausel besonders relevant, da zwischen Schadeneintritt und Regulierung Jahre liegen können."
    }
  }
}