Report reveals significant growth in demand for M&A insurance

Aon’s latest report has finally found significant growth in demand for merger and acquisition (M&A) insurance products following a decline in M&A after the 2008 financial crisis. The report, “Insurance for M&A: A coming of age and an exciting future ahead,” found that the recent economic environment has been favorable to M&A as interest rates remain low, company balance sheets stay stronger, and deal activity rises significantly among private equity firms. The analysis of data from Allen & Overy revealed that 3,200 deals were transacted around the world using warranty and indemnity (W&I) insurance over the course of 2018. Aon’s research also determined that the market value for transactional liability solutions got up to $2.3 billion in 2018, which marked a 35% increase from 2014.