01
The representations and warranties insurance (RWI) market saw consistent pricing throughout 2024, with a notable uptick in the fourth quarter driven by increased deal activity and insurers' profitability strategies.
02
Coverage terms were favorable for buyers, featuring minimal exclusions and competitive retentions.
03
The RWI market introduced several new coverage options, reflecting a growing adaptability to diverse market needs.
In 2024, the M&A insurance market saw significant growth, particularly in the RWI segment. Conditions were favorable for buyers, with reduced deductibles and broader coverage. Pricing remained stable, with a slight increase in the fourth quarter due to higher deal activity and insurers' efforts to enhance profitability. The market also saw notable innovations, such as new coverage options for minority investments and the expansion of RWI into distressed and bankruptcy deals. Despite these positive trends, the M&A market's recovery was slower than expected, with a persistent valuation gap between sellers and buyers. This gap, along with competitive dynamics, is expected to influence RWI pricing and coverage in early 2025, with insurers likely to seek modest price increases, though these efforts will be balanced by buyer pushback and broker advocacy.
WTW hopes you found the general information provided in this publication informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).
