Warranty Indemnity Claims Half Decade Data
In recent years, the number of Warranty & Indemnity (W&I) insurance policies placed in Asia as part of M&A deals, have increased exponentially. The increasing universality of W&I Insurance in deal structuring demonstrates its value as a useful tool to insure and transfer both buyers’ and sellers’ risks in a deal.
In the inaugural edition of the Transactional Risk Insurance (Asia) Claims Study, we investigate the reasons behind the popularity of W&I Insurance by analyzing claim trends, and examine:
- How the claims environment has changed.
- What have caused those changes.
- What developments the future may hold based on current trends and our observations in more established W&I Insurance markets.
Some insights we have gleaned from the data behind this report include:
- A 250% growth in the number of claims filed between 2015–2019.
- Approximately 15.46% of all policies placed in 2019 received at least one notification.
- 74% of all notifications were for deals with enterprise values of < USD 500m.
- Tax and Financial Statement breaches continue to be the most prevalent categories of breaches.
- Singapore and Japan clients place the most number of W&I insurance in Asia and, thus, lodge the most number of claims.
- 58.13% of notifications are filed by Corporate clients as opposed to Private Equity clients.
- Differences in statistics between industries, and also across geographies within Asia.
Download the report to learn more about claims on W&I insurance policies in Asia, and some of the potential pitfalls to look out for in M&A deals.