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RESEARCH AND BRIEFINGS

Demand for Transactional Risk Insurance at Record High in 2017

 


Strategic investors and private equity firms around the world turned to transactional risk insurance in record numbers in 2017 to reduce deal risk in a highly competitive mergers and acquisitions (M&A) environment.

Marsh’s M&A experts placed 28% more transactional risk insurance policies globally than in 2016. Average limits placed also increased, rising 38% in 2017, driven by the size and number of transactions in which insurance is being used.

“Transactional Risk 2017: Year in Review” provides additional details on the demand for transactional risk insurance globally.  Other key findings include:

  • Corporate buyers continue to increase their use of transactional risk insurance, and now represent 50% of the policy purchasers, which once was almost exclusively the domain of private equity firms.
  • Demand for both traditional and innovative transactional risk products is increasing, particularly for contingent tax risk.
  • The global insurance marketplace for transactional risk insurance is becoming more competitive, in terms of price, deductibles and terms and conditions.

Download the PDF to learn more.

Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions. This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from JLT Risk Solutions on request. Full information can be found in the JLT Risk Solutions Financial Services Guide.