Marsh, a global firm specializing in risk, insurance and advisory services, reports that the transaction risk insurance market has undergone significant changes in 2025, with pricing rising after several years of decline.
Marsh said primary representations and warranties (R&W) insurance rates increased in most regions this year, reversing a three-year trend of declining premiums. The company linked the shift to higher levels of M&A activity and an increase in claims.
North America has seen the most significant growth, with average primary R&W premiums increasing 16% year-on-year in 2025, compared with a 14% decline in 2024, according to Marsh. In Asia, rates rose 8% after falling 24% the previous year.
The company also emphasized that global M&A activity has reached a high level, with the total transaction value in 2025 approaching US$5 trillion. Compared with 2024, the transaction value increased by 37% and the number of transactions increased by 12%. This growth was primarily driven by larger deals, including 70 deals worth more than $10 billion (up 81% year-over-year) and 617 deals worth more than $1 billion.
In addition to this activity, claims have increased in frequency and severity, Marsh reports. Notifications and claims reached record highs in the UK, while claims doubled in Europe and saw significant growth in Asia. In North America, the number of notifications fell slightly, but total damages were at a record high.
Marsh further pointed out that by 2025, the company has set transaction risk insurance limits of $91.6 billion globally, involving more than 3,800 policies and nearly 1,800 transactions, an increase of 34%. The company also reported strong growth in its tax insurance business, with an 82% increase in North American policy volumes. In Europe, the number of policies increased by more than 50%, while insurance limits more than doubled from the previous year.
Finally, Marsh noted that the makeup of buyers continues to change. For the third year in a row, a higher proportion of transaction risk insurance plans are arranged for corporate and strategic buyers (53%) than for private equity firms (47%), indicating changing market dynamics.
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