Rising Claims in Mergers and Acquisitions Insurance: A Global Perspective
Payouts for merger and acquisition insurance policies in North America have hit unprecedented levels, with claims also rising in Europe and Asia, according to a study by Aon. Since its inception, Aon has recovered over $3 billion from nearly 2,000 transaction liability claims, emphasizing the growing importance of insurance in global M&A transactions.
The 2026 Global M&A and Transaction Solutions Claims Study covers a range of products, including representations and warranties (R&W), warranty and indemnity (W&I), tax, and contingent risk insurance. In 2025, North American clients collected over $1 billion from transaction solutions policies, with R&W insurance alone accounting for more than $440 million. Median payouts for R&W claims increased significantly, illustrating the evolving risk landscape.
Industry data from broker Gallagher reveals an expanding R&W market despite increasing claim payouts. Submission rates rose by 5% year-on-year, with average quoted rates climbing from 2.5% in Q4 2024 to 3.23% in Q4 2025. Large claims constituted a larger share of payouts, with 68% of losses tied to valuation-multiple claims. This trend underscores the increased risk management needs in North America.
Transaction Risk and Compliance Trends
The trend of rising claims is also observed by Marsh, which reported placing $91.6 billion in transactional risk limits in 2025, representing a 34% increase over 2024. Compliance with regulatory standards was the most frequently reported breach type in North America. Breaches related to financial statements accounted for 38% of total losses, highlighting areas of critical concern for insurers and clients alike.
In the EMEA region, there was a notable rise in insurance notifications, with a 21% notification rate noted on policies placed in 2023. Tax issues were often reported; however, the main financial impact derived from financial statement breaches. In the APAC region, disclosure breaches led, with rising W&I and tax notifications in countries like Australia and New Zealand.
Stephen Davidson, Aon's global head of transaction solutions claims, commented on the dynamic claims environment. He stressed the importance of quality underwriting data, analytics, and collaboration among all stakeholders to manage the growing claims and compensation complexities. The report, now in its seventh year, indicates strengthened confidence among buyers in using R&W and W&I policies to mitigate deal risks effectively.