WTW urges financial firms to prioritise insurance in M&A deals

WTW said 47% of claims come from the insured’s own shareholders, investors.

WTW said financial institutions should treat insurance optimisation as a strategic priority during mergers and acquisitions (M&A), as these deals can bring growth opportunities but also create complex operational and regulatory risks.

The firm noted that M&A transactions often change a company’s risk profile and can lead to integration issues, cultural clashes, and compliance challenges. If unmanaged, these risks can trigger claims from clients, employees, and shareholders. 

WTW data shows that 47% of claims come from the insured’s own shareholders and investors, with 39% of shareholder and governance-related claims linked to M&A. This averaged $28m per claim and $16m in recoveries.

WTW advised financial institutions to align insurance coverage with post-merger goals, consolidate policies to reduce costs, and take a portfolio approach to managing exposures. 

By doing so, firms can strengthen resilience, improve cost efficiency, and support long-term growth.