Corporate buyers boost R&W insurance growth

Transactional risk insurance limits placed by Marsh JLT Specialty in the US and Canada reached US$16.56 billion in 2018, a 53% increase from 2017. The number of transactions closed also jumped by 40% from 359 in 2017 to 504 in 2018. In its recently published Transactional Risk Insurance Report, Marsh attributes both increases to pricing reductions, larger transactions, and more corporate/strategic buyers. The North American representations and warranties (R&W) insurance market has seen meaningful pricing reductions for a number of years, making this an attractive insurance purchase and a good sell for insurance brokers. In 2018, primary layer rates declined 11% from 2017, following a 13% decrease from 2016. As more carriers enter the space, Marsh JLT Specialty expects pricing to continue to drop, although not at such a dramatic pace.

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