Rapid increase in transaction risk insurance market

According to a new report by Marsh, private-equity funds, businesses and strategic investors have increasingly sought transaction risk insurance last year to mitigate transaction risk.

Report, Transaction Risk Insurance 2021: Year of ReviewThe global transaction risk insurance limit imposed by Marsh Specialty in 2021 totaled $ 81.1 billion, an increase of 73% compared to 2020. These limits were spread over 3,000 insurance policies and 1,900 transactions, a sharp increase of 69% from before. Year.

The surge has challenged the capacity and execution capabilities of the transaction risk insurance market, the report said. This created a “surge price” as underwriters struggled to meet the demand for coverage at existing capacity levels, especially in the second half of the year due to high transaction volumes.

This year, Marsh has some to expand its overall capacity and price following the sharp rise last year as more new entrants enter the market and existing insurers expand their existing capabilities. Predicts downward pressure.

Lucy Clark, President of Marsh Specialty & Global Placement, said: “The growing global demand is evidence that transaction risk insurance is an established trading solution in the M & A market and is considered an important enabler by both buyers and sellers. Working with clients for M & A risk. We expect this demand to continue throughout 2022 in order to find innovative solutions to manage and protect our portfolio. “

Rapid increase in transaction risk insurance market

Source link Rapid increase in transaction risk insurance market

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