Global risk management business Aon Risk Solutions, part of global broker Aon, has established a new transaction liability practice in a bid to capitalise on the exponential growth in that market.

The dedicated practice will leverage existing expertise and will be complemented with additional resources to support the complex nature of these placements.

It will provide comprehensive transaction liability solutions to organisations such as private equity firms and organisations focused on mergers and acquisitions as well as clients who are seeking innovative solutions for contingent liability exposures that impair their balance sheet or impede a potential transaction.

Aon predicts transaction liability insurance products have become increasingly important as firms more aggressively focus on strategic acquisitions and divestures of non-core assets.

 “We estimate more than US$6bn of transaction liability limits were purchased globally in 2012,” said Michael Schoenbach, managing director and practice leader of the transaction liability practice. “We believe this was attributable to a combination of lower cost, enhanced coverage, favourable performance of the products, and better awareness of how to utilise them strategically.”