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:

  1. How the claims environment has changed.
  2. What have caused those changes.
  3. 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.

Please note that Marsh PB Co., Ltd and Marsh McLennan are not engaged by nor involved in any manner with Bonus Ranch and its promotion, and has not placed any insurance for nor insured any of its businesses or operations. Marsh as a licensed insurance broker will not request customers to make payment via non-standard methods, such as the transfer of money to any individual’s bank account.