A new report from Marsh shows that after three years of declining rates, the global transactional risk insurance market reversed course in 2025. Premium rates for standard representations and warranties (R&W) insurance increased in most regions. The change in pricing is linked to a rise in mergers and acquisitions activity and a growing number of claims.
The 2025 Global Transactional Risk Insurance Report found that North America saw the most pronounced price increase, with average premium rates for standard levels of representations and warranties (R&W) insurance rising by 16% compared with the previous year, after a 14% decline in 2024. A similar trend was recorded in Asia, where premiums increased by 8% year on year in 2025, following an average decline of 24% in 2024.
The rise in prices is connected to the record-high value of global M&A transactions, which reached nearly USD 5 trillion in 2025. Deal value grew much faster, up 37%, than deal volume, which increased by 12% compared with 2024. According to the report, this growth was driven by a sharp increase in high-value transactions, including 70 deals above USD 10 billion, representing an 81% year-on-year increase, as well as 617 deals exceeding USD 1 billion. The report also found that as both the number and value of transactions increased, the frequency and severity of transactional risk insurance claims rose worldwide in 2025. The United Kingdom recorded historic levels of notifications and payouts, while the number of claims in Europe doubled and Asia saw a sharp rise.
In North America, the number of notifications declined slightly, but the total value of claims paid reached a record level.
Other key findings from the report include the fact that in 2025 Marsh Risk arranged a record USD 91.6 billion in transactional risk insurance limits globally, representing a 34% increase, across more than 3,800 policies and nearly 1,800 unique transactions. The number of tax insurance policies placed by Marsh Risk in North America increased by 82% in 2025. In Europe, the number of tax insurance policies rose by more than 50%, while insurance limits more than doubled year on year. For the third consecutive year, Marsh Risk arranged a larger share of transactional risk insurance programs for corporate and strategic clients (53%) than for private equity firms (47%), signalling a lasting shift in buyer behaviour.
“2025 WAS A LANDMARK YEAR, WITH RISING PREMIUMS AND A RECORD NUMBER OF POLICIES PLACED, SUPPORTING HEIGHTENED M&A ACTIVITY,” said Craig Schioppo, Global Transactional Risk Insurance Practice Leader at Marsh Risk. “TRANSACTION ACTIVITY SO FAR IN 2026 HAS REMAINED STRONG, AND DEMAND FOR TRANSACTIONAL RISK INSURANCE SOLUTIONS CONTINUES TO BE HIGH AS THE INSURANCE MARKET REMAINS HARD. WE REMAIN COMMITTED TO DELIVERING INNOVATIVE RISK SOLUTIONS THAT HELP OUR CLIENTS NAVIGATE THIS DYNAMIC MARKET WITH CONFIDENCE.”
Marcin Stoń, Head of PEMA (Private Equity and M&A) for the CEE & Eastern Mediterranean Region, added: “Our experience in the Polish market confirms the report’s conclusions regarding broader European trends. Over the past year, we once again recorded strong growth in the use of transactional insurance policies, alongside an increase in compensation obtained by our clients. Particularly noteworthy is the growing popularity of tax risk insurance, which is increasingly becoming decisive in the successful closing of transactions.”
