Rising Trends in Transactional Risk Insurance for 2025

Marsh, a global leader in risk management and insurance consultancy, has identified a notable trend in the transactional risk insurance sector for 2025: an upswing in pricing following years of declines. This increase is largely driven by heightened merger and acquisition (M&A) activities and a surge in claims. The shift in pricing patterns highlights changing dynamics in the market and emphasizes the importance of strategic underwriting practices.

Premium rates for primary representations and warranties (R&W) insurance saw significant global increases, with North America leading with a 16% rise, reversing the previous year's 14% decline. Meanwhile, Asia reported an 8% increase, countering a 24% drop from the previous year. This shift indicates a growing focus on regulatory compliance and risk assessment among global insurers.

Marsh reported a substantial increase in global M&A activity, with transaction values approaching $5 trillion in 2025—a 37% increase from 2024. This growth was fueled by numerous large-scale transactions, including 70 deals exceeding $10 billion, marking an 81% increase from the prior year. The resulting rise in the frequency and severity of insurance claims highlights the evolving risk landscape, particularly in the United Kingdom and Europe, where claims reached historical highs.

In 2025, Marsh facilitated $91.6 billion in global transactional risk insurance limits, a 34% increase supported by over 3,800 policies. Notably, tax insurance saw substantial growth, with North American policies rising by 82%. European policy volumes increased by over 50%, with insured limits more than doubling year-over-year. This expansion reflects a growing demand for comprehensive risk management solutions amid changing regulatory environments.

An evolving trend in buyer demographics persists, as corporate and strategic buyers accounted for 53% of transactional risk insurance programs for the third consecutive year, surpassing private equity firms. This shift underscores changing market dynamics and the increased role of corporate governance in the procurement of risk management solutions.