The Changing Face of M&A Risk
There's been extraordinary growth in the use of warranty and indemnity, tax, litigation and bespoke contingent insurance in M&A deals. This combined with an increase in available insurance capacity has contributed to plummeting premium rates which further enhances the value of such solutions in deals.
With the increase in the use of W&I insurance on deals we may see this being the norm for all deals in the future which will further reduce rates as insurers gain more premium.