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RESEARCH AND BRIEFINGS

Midyear Transactional Risk Report – US and Canada

 


North America continued to see strong demand for transactional risk insurance,with the market showing no signs of slowing down after the explosive growth witnessed in 2014.

So far in 2015, buyer-side policies have been predominantly driven by sellers using them as tools to make the sales process more attractive. Essentially, sellers are oering to fund part or all of the buyer-side policy as an inducement to proceed with the transaction and to limit their post-closing liability.

“Auctions continue to drive the transactional risk market, with sellers increasingly sending out draft bids that include buyer-side coverage. We are also seeing corporate buyers becoming more interested in using this type of insurance to facilitate deals,” said Craig Schioppo, Transactional Risk leader for North America. “We think this trend will increase as corporate buyers realize they need to use insurance to help get deals finalized to better compete with private equity buyers in auction situations.”