Marsh reports strong growth in Transactional Risk Insurance market in 2024

Marsh, an insurance broker and risk advisor and a subsidiary of Marsh McLennan, has published its 2024 Transactional Risk Insurance Year in Review report, providing insights into key trends and developments in the market over the past year.

Transactional risk insurance saw significant growth in 2024, making it one of the most active years on record. Marsh facilitated US$67.8 billion in insurance limits, a 38% rise from the previous year.

This expansion was driven by a 33% increase in policies issued and a 31% rise in unique transactions, highlighting the growing reliance on insurance to manage risks in complex deals.

The market remained favourable for buyers, with pricing for primary layers of Representations and Warranties (R&W) and Warranty and Indemnity (W&I) insurance dropping across all regions.

The technology, healthcare, and renewable energy sectors played a key role in this surge, with transactional risk insurance being widely utilised. In particular, the renewable energy sector saw a notable uptick in tax insurance usage, as businesses sought coverage for investment and production tax credits, reflecting ongoing sustainability efforts.

Emerging markets also experienced increased adoption, particularly in Latin America and Africa, where insurers expanded their capacity to facilitate cross-border transactions.

Market conditions in 2024 were generally favourable for buyers, with primary coverage pricing decreasing by double digits across all regions. Underwriting capacity remained strong worldwide, with single transactions in North America and Europe typically securing up to US$1 billion in coverage.

However, insurers took a more cautious approach to limit deployment toward the end of the year due to rising claims in larger insurance programmes.

The report also highlighted an uptick in claims, with North America and EMEA seeing increases of 20% and 30%, respectively. Meanwhile, claims activity in Asia remained steady compared to 2023, and the Pacific region experienced a slight decline in claim notifications.

“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,” added 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.”

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