2021 Review and 2022 Predictions

2021 has been one of the biggest years for U.S. Mergers & Acquisitions (M&A) deal volume on record, and certainly in the life of representations and warranties insurance (RWI). We have seen RWI rates nearly double over the course of the year and RWI insurers attempting to restrict coverage in response to increasing claims experience. RWI is now a staple part of the majority of U.S. M&A deals, and new product developments are enabling it to reach previously uninsurable deals. We are also continuing to see growth in the use of tax, contingent liability and other insurances, which can assist not only M&A, but a broad range of standalone risks generated by transactional situations. The following report provides the latest costs, developments and projections for transactional risk products in 2021-22.

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