Transactional risk insurance claims increased by 20% and 30% in North America and EMEA, respectively in 2024. Asia’s claims activity remained stable compared to 2023, while the Pacific region experienced a slight decrease in claims notifications.

The above is provided by the latest 2024 Transactional Risk Insurance Year in Review report, released by Marsh, the world’s leading insurance broker and risk advisor and a business of Marsh McLennan. The report highlights significant trends and developments in the transactional risk insurance market over the past year.

With global deal volume growing 8% to USD 3.4 trillion in 2024, the demand for transactional risk insurance solutions surged, driven by a growing recognition of its value in mitigating risks associated with complex transactions. Marsh placed transactional risk insurance limits of USD 67.8 billion across over 2,750 policies, marking a 38% increase from the prior year.

Notable activity was observed in sectors such as technology, healthcare, and renewable energy, where dealmakers used transactional risk insurance at near-record levels. The renewable energy sector saw a significant rise in the use of tax insurance, reflecting ongoing trends in sustainability initiatives. Growth was further buoyed by increased usage of transactional risk insurance in emerging markets, particularly in Latin America and Africa, highlighting the expanding capacity of local insurers to facilitate cross-border transactions, according to the report.

Overall, the global transactional risk insurance market was generally favorable to buyers in 2024, with double-digit decreases in pricing for primary layers of coverage across all regions. Underwriting capacity remained ample globally, with approximately US$1 billion of limits typically available for single transactions in North America and Europe, though insurers began to manage limit deployment more conservatively toward the end of the year, owing to increased claims activity on larger insurance programs.

"Last year marked a pivotal year for transactional risk insurance, with a notable recovery in global M&A activity and an increased recognition of the value of insurance solutions in managing transaction-related risks", commented Craig Schioppo, Global Head of Transactional Risk, Marsh. “While geopolitical uncertainty has adversely impacted global M&A activity through Q1 2025, we remain optimistic about the continued growth of this market and its role in facilitating successful transactions across various sectors”, Craig Schioppo added.