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Report

Transactional Risk Insurance Global and Asia Claims Report 2023

This report focuses on claims made against representations and warranties (R&W) policies — also known as warranty and indemnity (W&I) policies — reported and paid in 2022.

The increased adoption of transactional risk insurance in Asia as a tool to offload risk in mergers and acquisitions (M&A) has led to a corresponding rise in claims.

Asia saw continued growth in 2022 with the entry of various new insurers into the regional market and a general expansion of insurer appetite for Asia transactions and related risks. We welcome the domestic expansion and foresee that a key differentiator for carriers, from a placement perspective, will lie in their ability to pay claims, and to do so seamlessly and expeditiously.

In 2022, we continued to see a correlation between a steady deal count and notifications received on policies placed in Asia. We also saw record-breaking claim payments across the region, including several domestic claim payments by local W&I insurers.

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Global highlights

  • In 2022, claim notifications increased 25% over 2021.
  • The average time to notification increased across all regions.
  • The percentage of financial statements claims decreased significantly, while the percentage of claims related to tax, compliance with laws, and litigation increased.
  • Marsh insureds received over US$232 million in claim payments in 2022.
  • The bulk of amounts paid in 2022 came from financial statements breaches notified in previous years.

Marsh Asia PEMA Claims Solutions: A US$11.3m claims payment success story in Japan

Download the Transactional Risk Insurance Global and Asia Claims Report 2023