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India records 33 pc of Asia’s transactional risk insurance claim notifications

New Delhi, June 17 (IANS) India accounted for one-third of all transactional risk insurance claims notifications in Asia during 2025, underscoring the growing adoption of such insurance solutions amid rising deal activity and increasing sophistication in the country’s mergers and acquisitions (M&A) market, according to a report released on Wednesday.

The report by Marsh — a global insurance broker and risk advisor — showed that India contributed 33 per cent of all transactional risk insurance claims notifications in Asia during the year.

Claims activity across Asia-Pacific witnessed a sharp rise, with notifications increasing 76 per cent year-on-year in 2025, it said.

Marsh clients in the region received more than $80 million in claims payments during the year, the highest annual payout recorded for Asia.

Growing deal sizes, rising cross-border transactions, increased regulatory scrutiny and more sophisticated deal structures are driving the adoption of transactional risk insurance among private equity firms and corporate acquirers in India.

Sanjay Kedia, CEO and President of Marsh India, said transactional risk insurance is increasingly being viewed as a strategic tool to manage complexity, mitigate downside risks and enhance deal certainty as India’s deal landscape expands.

The report noted that financial statement-related breaches emerged as the leading cause of warranty and indemnity insurance claims notifications across Asia, accounting for 41 per cent of all such claims.

It highlighted a sharp increase in tax liability insurance claims, which more than doubled year-on-year amid heightened regulatory and tax scrutiny across the region, adding that most claims in Asia were reported within two years of policy inception.

Moreover, some insurers are now providing preliminary coverage guidance within three days of claim notification, while 92 per cent of claims receive substantive responses within 30 days.

India’s M&A ecosystem continues to evolve, demand for structured risk-transfer solutions is expected to grow further, supporting smoother deal execution and better protection against transaction-related risks, the report added.

–IANS

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