Marsh Reports Reversal in Transactional Risk Insurance Pricing Amid Surge in Global M&A Activity

Key Takeaways

• Primary R&W premiums rose 16% in North America
• Global M&A deal value neared $5 trillion, up 37%
• Marsh placed $91.6 billion in risk limits, +34%
• Tax insurance policies jumped 82% in North America
• Corporate buyers now 53% of programs, overtaking PE

Summary

Marsh reports that primary representations and warranties (R&W) insurance premiums rebounded in 2025, ending a three‑year decline. North America saw the steepest increase, with rates up 16% year‑over‑year, while Asia’s premiums rose 8%. The price surge coincides with a near‑$5 trillion global M&A market, up 37% in value and 12% in deal count. Marsh also lifted its transactional risk insurance limits by 34%, reaching $91.6 billion across 3,800 policies.

Pulse Analysis

The rebound in transactional risk insurance pricing underscores a broader shift in the deal‑making ecosystem. After three years of declining premiums, Marsh’s data shows that heightened M&A activity—driven by mega‑transactions exceeding $10 billion—has reignited demand for representations and warranties coverage. Insurers are responding to larger deal sizes and tighter deal timelines by tightening pricing, especially in North America where premium growth outpaced any prior year. This dynamic reflects both the growing complexity of cross‑border deals and the heightened scrutiny of post‑close liabilities.

Regionally, the premium resurgence is uneven. While North America posted a 16% premium increase, Asia’s rates climbed 8% after a steep 24% drop, and Europe experienced modest gains amid a doubling of claim frequency. The surge in claim severity, particularly in the United Kingdom and Europe, has forced underwriters to reassess loss reserves, prompting higher limits and more robust policy structures. Concurrently, Marsh’s tax‑insurance segment exploded, with an 82% rise in North American policies, indicating that corporations are seeking broader protection against fiscal uncertainties tied to large transactions.

For market participants, the data signals a recalibration of risk appetite. The shift toward corporate and strategic buyers—now comprising 53% of transactional programs—suggests that private‑equity firms may face tighter terms or higher costs. Insurers are allocating more capital, as evidenced by the 34% increase in global limits, to accommodate larger, more complex deals. Stakeholders should monitor premium trajectories and claim trends, as they will influence deal structuring, financing costs, and the overall attractiveness of the M&A market in the coming years.