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M&A Boom Drives Up Transactional Risk Insurance Prices Globally
๐Ÿ‡ต๐Ÿ‡ฑ Poland /Economy & Trade

M&A Boom Drives Up Transactional Risk Insurance Prices Globally

From Rzeczpospolita · (2d ago) Polish

Translated from Polish, summarized and contextualized by DistantNews.

TLDR

  • Global transactional risk insurance premiums rose significantly in 2025 after three years of declines, driven by a record nearly $5 trillion in merger and acquisition (M&A) deal values.
  • North America saw the largest price increases, with average premiums for basic representations and warranties insurance up 16%, while Asia experienced an 8% rise.
  • The increase in deal volume and value led to a higher frequency and severity of claims globally, with the UK reporting historically high levels and Europe's claims doubling.

The global M&A market experienced a seismic shift in 2025, with a record-breaking surge in deal values and a subsequent sharp increase in transactional risk insurance premiums. Marsh's latest report highlights a dramatic turnaround from previous years, where rates had been steadily declining. This year, however, the market saw significant price hikes, particularly in North America, which experienced a 16% jump in average premiums for representations and warranties insurance. Asia also followed suit with an 8% increase.

The past year was a milestone, with rising premiums and a record number of contracts concluded, which supported increased activity in the mergers and acquisitions area.

โ€” Craig SchioppoGlobal Transactional Risk Insurance Practice Leader at Marsh Risk, commenting on the market trends.

This pricing correction is directly linked to the unprecedented volume and value of M&A transactions, which reached nearly $5 trillion globally. The data reveals that deal values grew at a much faster pace than the number of deals, with a notable surge in high-value transactions, including a substantial increase in deals exceeding $10 billion. This heightened activity naturally led to a rise in both the frequency and severity of claims filed under transactional risk insurance policies.

Our experience from the Polish market confirms the conclusions from the report regarding European trends. Last year, we recorded dynamic development in the application of transactional policies, along with an increase in compensation obtained by our clients.

โ€” Marcin Stoล„Head of PEMA (Private Equity and M&A) Practice in the CEE & Eastern Mediterranean Region at Marsh, discussing the Polish market.

From a Polish perspective, these global trends are mirrored locally. Marsh's Polish operations confirm the European trend of dynamic growth in the use of transactional policies, alongside a rise in claims payouts for clients. Notably, tax risk insurance is gaining prominence, increasingly becoming a crucial element in successfully closing deals. This indicates that Polish businesses are actively leveraging these insurance solutions to navigate the complexities of M&A, aligning with international best practices and demonstrating a sophisticated approach to risk management in the region.

The growing popularity of tax risk insurance, which is increasingly decisive for the successful closing of transactions, deserves special attention.

โ€” Marcin Stoล„Head of PEMA (Private Equity and M&A) Practice in the CEE & Eastern Mediterranean Region at Marsh, highlighting a specific trend in Poland.
DistantNews Editorial

Originally published by Rzeczpospolita in Polish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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