Popularity of deal insurance set to soar

In February, we considered some of the trends and hot topics may shape insurance M&A in 2025 and beyond including:

• More PE investment and more consolidation for brokers and MGAs
• Strategic interest in consolidators
• Prospects for MGAs: Growing uncertainty in a packed market
• The dawn of a new era of insurance carrier M&A?
• Continued impetus for transactional activity in the life sector

However, the US tariff announcements impacted dealmaking confidence, altering the global M&A landscape.

Insight from our Global M&A trends and risks report

Now in its third year, our Global M&A Trends and Risks report, published in partnership with Mergermarket, captures insights from senior dealmakers across the world on the key risks and opportunities shaping mergers and acquisitions (M&A) deal activity in 2025.

Deal insurance is gaining momentum and continues to accelerate as buyers and sellers move swiftly to shield themselves from risk in today’s increasingly unpredictable dealmaking landscape.

The survey revealed that 65 percent of respondents expect the use of Warranty & Indemnity (W&I) and Representations & Warranties (R&W) insurance to rise in 2025. This trend was seen across every market around the world, but is anticipated to be more pronounced in the Middle East and South and South East Asia. 

Shabnam Karim, a partner in Dubai said:

• “The Middle East is certainly embracing the potential of R&W and W&I insurance, with the proliferation of use in deals throughout the region.”

Matt Foster, a partner in London said:

• “The shift in jurisdictions where the most growth in R&W and W&I insurance is expected reflects the maturity of the product across the globe as a core deal enabler. The continued focus and investment by underwriters to grow the product in new and more active markets is recognised in the growth expectations of dealmakers in regions like the Middle East and Asia.”

Across Asia we are already seeing this play out in some of our projects. Anna Tipping, a partner in Singapore said:

• “We are already seeing signs of the projected uptick in deal insurance use in Singapore.”

While the outlook remains uncertain, the survey highlights potential opportunities in W&I and R&W insurance as the market seeks to adapt to changing global dynamics.