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Insurance has an important role to play in managing transactional risk, protecting both the buyer and seller from downsides arising from a deal. M&A-related policies are growing in popularity and cover risks in connection with representations and warranties (R&W) (or warranties and indemnities), tax and contingent liability, for example. Deals of all sizes generate significant risks for the parties involved.

Due largely to ongoing geopolitical and macroeconomic challenges, M&A activity has been down this year. Fewer deals and lower enterprise values, alongside more market participants in the M&A insurance space, has increased competition and resulted in a soft market for M&A policies. However, premiums are expected to rise in the months ahead. An increase in pricing, particularly for R&W insurance, looks likely as insurers start to see more claims from prior years.

With dealmaking expected to rebound to some degree in 2024, amid an improving macroeconomic outlook and the potential deployment of private equity dry powder, the transactional insurance market will be one to watch next year.

Against this backdrop, Financier Worldwide turns to some of the leading lights in their field, who share their stories…

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