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Report

Transactional risk insurance 2022: year in review

Transactional risk insurance remains a critical tool for dealmakers amid a changing M&A landscape

Marsh’s Transactional risk insurance 2022: year in review provides an overview of the transactional risk insurance market during the year, across all geographic regions, and explores developments that are expected in 2023 and beyond.

Key findings of the report include:

  • Marsh experienced its second busiest year on record, globally placing transactional risk insurance limits of US$59.3 billion on over 2,200 policies across 1,438 unique transactions — representing over $420 billion in aggregate enterprise value. While lower than the levels of 2021, this is significantly higher than the US$46.8 billion in limits placed by Marsh in 2020.
  • Pricing on primary layer R&W insurance decreased dramatically in North America, falling more than 200 basis points from a record high at the start of 2022. Despite this drop, North America pricing remains higher than other regions. In EMEA (Europe, Middle East, and Africa) and Asia, primary layer W&I pricing actually increased slightly from the prior year, while pricing in the Pacific region declined from the year before.
  • Underwriting capacity remained plentiful across the globe, with more than US$1 billion of limits available for a single transaction in North America and Europe; new market entrants have also expanded available capacity in Asia and the Pacific regions.
  • Transactional risk insurance claims increased in all regions across the globe as compared with prior years.
  • Marsh clients significantly increased their utilization of tax insurance, mostly due to better understanding of the product as well as increased sophistication and broadened appetite among tax insurance underwriters, particularly for non-M&A (i.e., balance sheet management) risks.

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Global Transactional Risk Report 2022

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