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.
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