Transactional risk insurance claims rise in India as M&A deals grow

Insurers have so far paid out about $1m, with other claims still being processed.

Transactional risk insurance claims are rising in India as dealmakers use these policies more often to manage merger and acquisition (M&A) risks, according to a new report from Marsh India.

The firm has handled around 50 claim notifications since 2017, with 11 filed in 2025 as of July. 

About 77% of these came from private equity funds and 23% from corporates. 

Nearly half of all claims were under warranty and indemnity (W&I) policies, whilst 82% of 2025 claims were under specific transactional risk policies, reflecting tighter regulatory scrutiny.

Insurers have so far paid out about $1m, with other claims still being processed. 

Most claims were filed within the first year of policy inception. Audits and assessments were the top cause, accounting for almost 70% of breaches.

Marsh said insurers are balancing competitive pricing with growing claim volumes, whil companies are placing more focus on claim handling quality and stronger due diligence to prevent disputes.