{
  "id": "clause-ultimate-net-loss-clause",
  "type": "clause",
  "languages": {
    "en": {
      "id": "clause-ultimate-net-loss-clause",
      "lang": "en",
      "type": "clause",
      "title": "Ultimate Net Loss Clause",
      "shortDefinition": "The ultimate net loss clause defines which amounts – the principal loss, claims expenses and recoveries from other cover – are taken into account when calculating the net loss recoverable under a reinsurance treaty.",
      "synonyms": [
        "Net loss clause"
      ],
      "linesOfBusiness": [
        "Reinsurance"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "Reinsurance",
        "Loss definition"
      ],
      "relations": {
        "relatedTerms": [
          "term-ultimate-net-loss",
          "term-excess-of-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": "definition",
        "origin": "reinsurance-market",
        "favours": "neutral",
        "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/ultimate-net-loss-clause/",
      "alternateUrl": "https://hgh.ch/lexikon/de/wissen/klausel/ultimate-net-loss-klausel/",
      "body": "## Purpose\n\nSo that cedent and reinsurer apply the same figure as the relevant loss, the clause exhaustively defines the term \"ultimate net loss\": the amount actually paid or payable by the cedent, including attributable claims settlement expenses, reduced by all recoveries from subrogation, salvage or other, prior reinsurance.\n\n## Effect and limits\n\nThe precise definition determines whether and to what extent legal, expert and internal handling costs are included in the recoverable loss amount, and in what order other layers of cover (retention, other reinsurance layers) must be applied before the treaty in question. Absent a precise definition, multi-layer programmes regularly give rise to settlement disputes.\n\n## Negotiation and practice\n\nWhether external and internal claims handling costs (loss adjustment expenses) are included in full, proportionally, or not at all, is a key negotiation point that materially affects the effective level of cover."
    },
    "de": {
      "id": "clause-ultimate-net-loss-clause",
      "lang": "de",
      "type": "clause",
      "title": "Ultimate-Net-Loss-Klausel",
      "shortDefinition": "Die Ultimate-Net-Loss-Klausel definiert, welche Beträge – Hauptschaden, Schadenkosten und Rückflüsse aus anderen Deckungen – bei der Berechnung des unter einem Rückversicherungsvertrag anrechenbaren Nettoschadens berücksichtigt werden.",
      "synonyms": [
        "Nettoschadendefinition"
      ],
      "linesOfBusiness": [
        "Rückversicherung"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "Rückversicherung",
        "Schadendefinition"
      ],
      "relations": {
        "relatedTerms": [
          "term-ultimate-net-loss",
          "term-excess-of-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": "definition",
        "origin": "reinsurance-market",
        "favours": "neutral",
        "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/ultimate-net-loss-klausel/",
      "alternateUrl": "https://hgh.ch/lexikon/en/knowledge/clause/ultimate-net-loss-clause/",
      "body": "## Zweck\n\nDamit Zedent und Rückversicherer denselben Betrag als massgeblichen Schaden ansetzen, definiert die Klausel den Begriff «Ultimate Net Loss» abschliessend: den vom Zedenten tatsächlich gezahlten oder zu zahlenden Schadenbetrag einschliesslich zurechenbarer Schadenregulierungskosten, vermindert um sämtliche Rückflüsse aus Rückgriff, Salvage oder anderer, vorrangiger Rückversicherung.\n\n## Wirkung und Grenzen\n\nDie genaue Definition entscheidet, ob und wie weit Anwalts-, Sachverständigen- und interne Bearbeitungskosten in die anrechenbare Schadenhöhe einfliessen, und in welcher Reihenfolge andere Deckungen (Selbstbehalt, andere Rückversicherungsschichten) vor dem betrachteten Vertrag zu berücksichtigen sind. Fehlt eine präzise Definition, entstehen bei mehrschichtigen Programmen regelmässig Abrechnungsstreitigkeiten.\n\n## Verhandlung und Praxis\n\nOb externe und interne Schadenbearbeitungskosten (Loss Adjustment Expenses) vollständig, anteilig oder gar nicht eingeschlossen werden, ist ein zentraler Verhandlungspunkt und beeinflusst die effektive Deckungshöhe erheblich."
    }
  }
}