{
  "id": "clause-warranty-of-retention",
  "type": "clause",
  "languages": {
    "en": {
      "id": "clause-warranty-of-retention",
      "lang": "en",
      "type": "clause",
      "title": "Warranty of Retention",
      "shortDefinition": "The warranty of retention guarantees that the cedent actually retains the agreed net retention for its own account, unreduced, throughout the life of the treaty.",
      "synonyms": [
        "Retention warranty"
      ],
      "linesOfBusiness": [
        "Reinsurance"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "Reinsurance",
        "Retention"
      ],
      "relations": {
        "relatedTerms": [
          "term-excess-of-loss",
          "clause-net-retained-lines"
        ],
        "partOf": [],
        "appliesTo": [
          "term-excess-of-loss",
          "term-nichtproportionale-rueckversicherung"
        ],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": {
        "kind": "warranty",
        "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/warranty-of-retention/",
      "alternateUrl": "https://hgh.ch/lexikon/de/wissen/klausel/warranty-of-retention/",
      "body": "## Purpose\n\nPricing an excess of loss treaty assumes that the cedent actually retains the agreed level of net retention and does not effectively reduce it through further reinsurance not disclosed to the reinsurer. The warranty of retention turns this assumption into a strict contractual warranty, not merely a general expectation.\n\n## Effect and limits\n\nAs a warranty in the technical sense, a breach – unlike a mere condition – typically results in an automatic or at least significantly stricter loss of cover, regardless of whether the breach contributed to the loss. Jurisdictions treat the legal consequences of warranties with varying degrees of strictness; the exact wording determines whether a cure is possible.\n\n## Negotiation and practice\n\nCedents often try to soften the strict warranty into a milder condition or a de-minimis clause (small, unintentional deviations remain harmless). Reinsurers on high, concentrated cat XL layers frequently insist on the strict version, since the retention directly determines the reinsurer's assumption of risk."
    },
    "de": {
      "id": "clause-warranty-of-retention",
      "lang": "de",
      "type": "clause",
      "title": "Warranty of Retention",
      "shortDefinition": "Die Warranty of Retention garantiert, dass der Zedent den vereinbarten Selbstbehalt während der gesamten Vertragslaufzeit tatsächlich und ungeschmälert für eigene Rechnung trägt.",
      "synonyms": [
        "Retentionsgarantie"
      ],
      "linesOfBusiness": [
        "Rückversicherung"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "Rückversicherung",
        "Selbstbehalt"
      ],
      "relations": {
        "relatedTerms": [
          "term-excess-of-loss",
          "clause-net-retained-lines"
        ],
        "partOf": [],
        "appliesTo": [
          "term-excess-of-loss",
          "term-nichtproportionale-rueckversicherung"
        ],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": {
        "kind": "warranty",
        "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/warranty-of-retention/",
      "alternateUrl": "https://hgh.ch/lexikon/en/knowledge/clause/warranty-of-retention/",
      "body": "## Zweck\n\nDie Kalkulation eines Exzedentenvertrags setzt voraus, dass der Zedent tatsächlich das vereinbarte Selbstbehaltsniveau selbst trägt und nicht durch weitere, dem Rückversicherer nicht offengelegte Rückversicherung effektiv reduziert. Die Warranty of Retention macht diese Voraussetzung zur zwingenden Vertragsgewähr (Warranty), nicht nur zu einer allgemeinen Erwartung.\n\n## Wirkung und Grenzen\n\nAls Warranty im technischen Sinn führt eine Verletzung – im Unterschied zu einer blossen Bedingung – typischerweise zu einem automatischen oder zumindest deutlich strengeren Wegfall der Deckung, unabhängig davon, ob die Verletzung den Schaden mitverursacht hat. Rechtsordnungen behandeln die Rechtsfolgen von Warranties unterschiedlich streng; die genaue Klauselformulierung entscheidet, ob eine Heilung möglich ist.\n\n## Verhandlung und Praxis\n\nZedenten versuchen häufig, die strikte Warranty durch eine mildere Bedingung oder eine Bagatellklausel (geringe, unbeabsichtigte Abweichungen bleiben unschädlich) abzuschwächen. Rückversicherer bestehen bei hohen, konzentrierten Cat-XL-Schichten oft auf der strengen Fassung, da die Retention hier direkt die Risikoübernahme des Rückversicherers bestimmt."
    }
  }
}