Aon has reported its highest annual total to date for M&A insurance claims payouts. In Europe, the Middle East and Africa (EMEA), the study recorded a 26% year-over-year rise in claims notifications in 2024.
According to the firm’s latest Global Transaction Solutions Claims Study, the region also saw an increase in the overall value of warranty and indemnity (W&I) insurance recoveries. Payouts made last year represented more than one-third of all such payments made to Aon clients in EMEA to date.
The report said clients in North America recovered more than $300 million in 2024.
The findings highlight increased activity in claims related to representations and warranties (R&W) insurance, also referred to as W&I insurance in some markets.
The data, based on Aon’s internal claims records and insurer submissions, shows 39 paid claims in North America last year alone, with a median payout of $5.5 million. In total, Aon’s North American claims team has supported more than 100 paid claims over the past three years.
In the Asia Pacific (APAC) region, the report notes a wider range of breach categories among claims, with disclosure-related breaches making up nearly 30% of W&I claims in Australia and New Zealand. In India, tax-related matters accounted for over 30% of total W&I and tax liability claims in 2024.
The most frequent causes of R&W and W&I insurance claims varied by region. In North America, the primary triggers were breaches involving compliance with laws (20%), tax (17%), and material contracts (13%). In EMEA, tax-related breaches led in frequency (26%), but breaches involving financial statements accounted for the highest value of claims (27%). In APAC, material contract breaches were most common (19%), followed by legal compliance, tax, and license permits at 12.5% each.
The study also compared claims frequency and severity across industry sectors in North America. According to Aon, the distribution of claims is generally consistent with the volume of deals by sector, suggesting that no single industry stands out as having elevated risk levels for R&W breaches.
“R&W insurance has become an established part of transaction risk management,” said Stephen Davidson, global head of claims at Aon. “This year’s results reflect the importance of collaboration among insurers, brokers, and policyholders in achieving efficient claim resolutions.”
To date, Aon said it has handled more than 1,600 notified R&W and W&I claims globally, resulting in over $1.75 billion in total payouts. Of that amount, more than $500 million has been paid for claims submitted more than 12 months after transaction close. The firm also reported a continuing increase in claims activity across Asia, which it attributes to greater policyholder awareness and earlier engagement with brokers during the claims process.
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