Marsh Insights: Use of M&A Transactional Risk Solutions on the Rise

Global demand for transactional risk insurance has grown substantially over the last three years, fuelled by an increase in corporate, private equity and infrastructure funds using insurance to protect their deals and gain a strategic advantage in negotiations, particularly in cross-border transactions.

Limits of M&A insurance placed by Marsh, such as warranty and indemnity (W&I) insurance, grew year-on-year by 26% from 2012 to 2013. Although this represents a significant increase in the utilisation of this transaction tool, when viewed historically across a three-year period, the increase is even more noteworthy. 2013 limits of insurance placed by Marsh globally have increased by 155% since 2010.

Inside this special edition are some key drivers for growth, and key motivations for utilising the insurance solutions that Marsh arranges, including:

• Increased activity in new jurisdictions.
• Motivations of clients’ use of transactional risk insurance.
• The evolution of the parameters of the policy and coverage provided.

We also include details of recent articles written by our team and prominent speaking events.