RC: Based on your experience, how would you describe current attitudes toward transactional insurance? To what extent are you seeing broader adoption of transactional insurance in today’s M&A market? Are there particular types of transactions – by size or industry, for example – that are particularly well-suited to the use of transactional insurance?

Hendry: There are a number of key underwriting centres for transactional insurance that have evolved semi-independently as the products have been increasingly taken up.  The more mature centres in UK, Nordics and Australia have seen consistent growth in the use of the product for over five years as M&A professionals experience the positive aspects of the products. The US market has grown phenomenally over the past 24 months and this acceptance in the US is leading to a greater understanding and adoption of the insurance across the globe. Based on the data we have collected, we consider that the take up of the products has grown by 20 percent year on year since 2008. The number of insurers offering M&A insurance has expanded rapidly over the past 36 months. Currently there are 28 insurers and we know of others that are due to launch shortly.  As the transactional insurance market matures and develops, we expect that insurers will increasingly differentiate their offering by specialising on a sector basis, by geography, by size of transaction or by including coverage enhancements.

Oct-Dec 2016 Issue

Ambridge Partners LLC

Paragon International Insurance Brokers Ltd

Simpson Thacher & Bartlett LLP

Tokio Marine HCC