Aon reports $1.75b in M&A insurance claims globally

APAC saw a rise in Warranty & Indemnity policies last year.

Mergers and acquisitions (M&A) insurance continues to play a critical role in helping companies manage deal risk, with insurers paying out more than $1.75b in claims globally, according to Aon’s 2025 Transaction Solutions Global Claims Study.

In the Asia-Pacific region, claims were submitted on approximately 20% of policies placed, with common breaches relating to compliance with laws, financial statements, and tax matters. 

The study noted a rise in M&A activity and increased use of Warranty & Indemnity (W&I) policies in Asia during 2024.

In North America alone, Aon clients received over $300m in representation and warranty (R&W) insurance payments in 2024, with a median claim payment of $5.5m—the highest ever recorded in a single year.

Claim frequency has been steadily rising since a low in 2020, with breaches involving compliance with laws, financial statements, and material contracts continuing to drive most losses. 

Although no industry stood out as having significantly higher risk, the study found deal risk exists across sectors, with breach types varying depending on the industry.

In EMEA, insurers paid out $70.9m in W&I claims in 2024. 

That amount represents more than 35% of total payouts secured for all prior years combined, indicating the growing maturity and reliability of W&I insurance as a risk transfer tool in the region. 

Tax and financial statements were the top breach types notified in EMEA.

Aon’s data also showed a growing number of claims are being filed more than 12 months post-closing. 

These late notifications accounted for 49% of claims in North America and more than $400m in paid losses, highlighting the benefit of R&W coverage beyond the traditional seller escrow period.

The report also observed growing activity in tax insurance. 

Most claims are still under resolution, but insurers have paid both contest costs and tax assessments, particularly in renewable energy transactions. 

Notification frequency on tax insurance policies reached 13%.