Use of reps and warranties coverage expected to rise: Survey

The use of representations and warranties insurance is expected to increase in 2025 compared to 2024, according to a survey from global law firm Norton Rose Fulbright and Mergermarket Ltd. released Tuesday.

Nearly two-thirds of respondents, or 65%, expect more reps and warranties insurance use in M&A this year compared with 2024, according to the survey. That’s up from 61% in last year’s study.

Thirty-seven percent expect the increase to be significant, up from 26% in the previous year’s study.

Deals involving industrial assets were the most frequently cited as expected to see more use of representations and warranties insurance, with 46% of respondents listing the sector in the top three. Close behind were life sciences, at 45%, and health care, at 42%.

“Rates and terms are now more competitive for targets in these industries,” Marshall Bromwich of Norton Rose Fulbright said in the report. “We are also seeing a global expansion in the number of specialist providers.”

In first-quarter 2025, Mergermarket surveyed 200 executives on trends and risks in global merger and acquisition activity. Those surveyed were 100 C-suite executives from multinational corporates, 50 from big private-equity firms and 50 from major investment banks.