A surge in demand for transactional risk insurance accompanied rising global deal volume in 2024, according to Marsh’s latest Transactional Risk Insurance Year in Review report. However, increasing claims activity has prompted insurers to adjust their approach to underwriting.
As mergers and acquisitions (M&A) activity grew by 8% to US$3.4 trillion, Marsh placed US$67.8 billion in transactional risk insurance limits across more than 2,750 policies—marking a 38% increase from the previous year. The rise underscores the growing reliance on insurance to manage financial and legal risks in complex transactions.
The report highlighted a notable increase in claims, with North America and the EMEA region seeing rises of 20% and 30%, respectively. While claims activity in Asia remained stable, the Pacific region recorded a slight decrease.
Despite a competitive market that saw double-digit declines in pricing for primary layers of coverage, insurers began tightening underwriting practices toward the end of the year. Although single-transaction coverage limits of up to US$1 billion remained available in North America and Europe, insurers moved to deploy capacity more cautiously in response to the higher claims frequency.
Transactional risk insurance saw strong uptake across technology, healthcare, and renewable energy, where dealmakers increasingly relied on coverage for tax-related exposures. Emerging markets, particularly in Latin America and Africa, also recorded increased usage, reflecting a growing insurance infrastructure supporting cross-border deals.
Marsh Global Head of Transactional Risk Craig Schioppo noted that 2024 was a “pivotal year” for the market, with M&A activity rebounding and insurance playing an expanded role in managing transaction risks.
While geopolitical uncertainty has slowed dealmaking in early 2025, Marsh expects continued demand for transactional risk insurance as buyers seek protection in an increasingly complex and volatile environment.
