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M&A transactions carry risks for both buyers and sellers. To provide protection against potential downsides from a deal, companies frequently turn to insurance. M&A-related insurance policies offer coverage for risks associated with representations and warranties, tax, contingent liabilities, and more. This reduces the need for extensive negotiations over indemnities and provides greater deal certainty.

Reduced deal activity over the few years has led to an increasingly competitive transactional risk insurance market. Brokers and underwriters are searching for new ways to differentiate themselves in a crowded space. Insurers are reportedly offering higher coverage limits, and developing new and innovative insurance products to meet the evolving needs of M&A parties.

The increasing complexity of deals and related regulations will continue to drive demand for specialised insurance products to cover tax liabilities and contingent risks, further fuelling market growth.

With the level of dry powder for acquisitions accumulating, dealmaking is expected to rise in 2025. Should an upsurge come to pass, the transactional risk insurance space will have a crucial role to play.

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

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