{
  "id": "term-excess-of-loss",
  "type": "term",
  "languages": {
    "en": {
      "id": "term-excess-of-loss",
      "lang": "en",
      "type": "term",
      "title": "Excess of Loss (XL)",
      "shortDefinition": "Excess of loss is the fundamental form of non-proportional reinsurance, under which the reinsurer covers losses above an agreed retention up to a capacity limit.",
      "synonyms": [
        "XL"
      ],
      "linesOfBusiness": [
        "Reinsurance"
      ],
      "jurisdictions": [],
      "tags": [
        "Reinsurance"
      ],
      "relations": {
        "relatedTerms": [
          "term-cat-xl",
          "term-drop-down-cover",
          "clause-stability-index-clause",
          "clause-sunset-clause",
          "clause-two-risk-warranty",
          "clause-ultimate-net-loss-clause",
          "clause-warranty-of-retention"
        ],
        "partOf": [],
        "appliesTo": [],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": null,
      "legalBasis": [],
      "standards": [],
      "reviewStatus": "expert-reviewed",
      "reviewedBy": "Guido Hesse, Hesse Group Holding AG",
      "lastReviewed": "2026-09-04",
      "version": "0.3.0",
      "updated": "2026-09-03",
      "generated": {
        "by": "process:reconstructed",
        "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/term/excess-of-loss/",
      "alternateUrl": "https://hgh.ch/lexikon/de/wissen/begriff/excess-of-loss/",
      "body": "## Concept\n\nExcess of loss (XL) is the fundamental contract form of non-proportional reinsurance, under which the reinsurer covers the portion of a loss that exceeds an agreed retention (priority), limited to an agreed capacity (layer); unlike proportional reinsurance, the premium is not sized proportionally to the sum insured but rather risk-adequately for the loss potential assumed.\n\n## Contract Variants\n\nExcess-of-loss treaties are concluded in various forms depending on the basis of the retention: a working XL (per-risk excess of loss) protects against individual large losses, a catastrophe XL against the accumulated loss burden from a single catastrophe event, and a stop-loss treaty against exceeding an agreed overall loss ratio within a period.\n\n## Layer Structure\n\nExcess-of-loss programs are frequently structured in several successive layers with different reinsurers, with each layer covering a specific band above the preceding layer; this structure allows the cedent to obtain high total capacity without having to rely entirely on a single reinsurer."
    },
    "de": {
      "id": "term-excess-of-loss",
      "lang": "de",
      "type": "term",
      "title": "Excess of Loss (XL)",
      "shortDefinition": "Excess of Loss ist die grundlegende Form der nichtproportionalen Rückversicherung, bei der der Rückversicherer Schäden oberhalb eines vereinbarten Selbstbehalts bis zu einer Kapazitätsgrenze übernimmt.",
      "synonyms": [
        "XL",
        "Summenexzedent"
      ],
      "linesOfBusiness": [
        "Rückversicherung"
      ],
      "jurisdictions": [],
      "tags": [
        "Rückversicherung"
      ],
      "relations": {
        "relatedTerms": [
          "term-cat-xl",
          "term-drop-down-cover",
          "clause-stability-index-clause",
          "clause-sunset-clause",
          "clause-two-risk-warranty",
          "clause-ultimate-net-loss-clause",
          "clause-warranty-of-retention"
        ],
        "partOf": [],
        "appliesTo": [],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": null,
      "legalBasis": [],
      "standards": [],
      "reviewStatus": "expert-reviewed",
      "reviewedBy": "Guido Hesse, Hesse Group Holding AG",
      "lastReviewed": "2026-09-04",
      "version": "0.3.0",
      "updated": "2026-09-03",
      "generated": {
        "by": "process:reconstructed",
        "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/begriff/excess-of-loss/",
      "alternateUrl": "https://hgh.ch/lexikon/en/knowledge/term/excess-of-loss/",
      "body": "## Begriff\n\nExcess of Loss (XL) ist die grundlegende Vertragsform der nichtproportionalen Rückversicherung, bei der der Rückversicherer denjenigen Teil eines Schadens übernimmt, der einen vereinbarten Selbstbehalt (Priorität) übersteigt, begrenzt auf eine vereinbarte Kapazität (Layer); anders als bei der proportionalen Rückversicherung wird die Prämie nicht proportional zur Deckungssumme, sondern risikoadäquat für das übernommene Schadenpotenzial bemessen.\n\n## Vertragsvarianten\n\nExcess-of-Loss-Verträge werden je nach Bezugsgrösse des Selbstbehalts in unterschiedlichen Varianten abgeschlossen: der Working XL (Schadenexzedent je Risiko) schützt gegen einzelne Grossschäden, der Catastrophe XL gegen die kumulierte Schadenlast aus einem einzelnen Katastrophenereignis, und der Stop-Loss-Vertrag gegen die Überschreitung einer vereinbarten Gesamtschadenquote innerhalb einer Periode.\n\n## Layer-Struktur\n\nExcess-of-Loss-Programme werden häufig in mehreren aufeinanderfolgenden Schichten (Layern) mit unterschiedlichen Rückversicherern strukturiert, wobei jede Schicht eine bestimmte Bandbreite oberhalb der vorangehenden Schicht abdeckt; diese Struktur ermöglicht es dem Zedenten, hohe Gesamtkapazität zu beschaffen, ohne sich vollständig auf einen einzelnen Rückversicherer verlassen zu müssen."
    }
  }
}