Payouts on the policies that protect mergers and acquisitions have hit record levels in North America, as claims mount in Europe and Asia. The finding comes from a new study by broker Aon.
Aon said it had recovered more than US$3 billion across its transaction liability products since inception, drawing on nearly 2,000 claims. The 2026 Global M&A and Transaction Solutions Claims Study was released on June 3. It spans representations and warranties (R&W), warranty and indemnity (W&I), tax and contingent risk coverage.
North American clients secured more than US$1 billion across transaction solutions policies in 2025, including more than US$440 million from R&W insurance. Median R&W claim payments reached US$8.2 million, up from US$5.5 million in 2024.
The wider market kept growing even as payouts climbed, broker Gallagher found. R&W submissions rose 5% year-on-year, while average quoted rates went from 2.5% in Q4 2024 to 3.23% in Q4 2025. It described coverage terms as broadly favorable to buyers.
Larger claims are more common in the region, with a growing share of losses topping 60% of policy limits. About 4% alleged losses above US$100 million. Valuation-multiple claims made up 68% of total paid losses in 2025.
Eight-figure claims made up about 41% of North American payments in 2025, up from 27% in 2024. More than half, or 51%, were filed over 12 months after closing.
The shift toward larger claims is not Aon's alone. Rival broker Marsh placed US$91.6 billion in transactional risk limits in 2025, up 34% on 2024, across more than 3,800 policies. It, too, reported rising claims frequency and severity worldwide, with North America posting record total loss payments.
Compliance with laws was the most frequent North American breach type, at over 20% of notifications. Material contracts, financial statements, and tax breaches each exceeded 10%.
Financial statement breaches drove 38% of total losses, the largest single share. Intellectual property claims rose from about 5% of losses between 2019 and 2024 to roughly 10% in 2025.
In EMEA, notifications climbed from 70 in 2024 to 119 in 2025. Insurer data showed a notification on 21% of policies placed across the market in 2023.
By December 31, 2025, a notification had been filed on 9.5% of Aon-placed policies. Aon tied this to earlier reporting and maturing underwriting years.
Tax was the main notification driver in EMEA at more than 20%, though Aon said it does not drive paid losses. Financial statement breaches are the main loss driver there.
Disclosure remained the most common breach type across APAC. There, W&I and tax notifications are growing in Australia, New Zealand, and Asia.
Tax insurance remained low frequency. Even so, Aon said it had recovered more than US$350 million for North American clients through negotiated tax-authority resolutions.
Stephen Davidson, Aon's global head of transaction solutions claims, said the environment was changing quickly, with higher frequency, greater severity, and shifting notification patterns. He said the market "continues to demonstrate the value of high-quality underwriting data, sophisticated analytics and close partnership between insurers, brokers and clients."
Now in its seventh year, the study comes as buyers grow more comfortable using R&W and W&I against deal risks.
