India leads Asia with 33% of transactional risk insurance claims in 2025
Synopsis
India generated one in every three transactional risk insurance claim notifications across all of Asia in 2025 — a striking concentration that reflects just how rapidly the country's M&A market is maturing. With Asia-Pacific payouts hitting a record $80 million and tax liability claims more than doubling, the data points to a new era of deal-risk awareness in Indian boardrooms.
Key Takeaways
India accounted for 33 per cent of all transactional risk insurance claims notifications in Asia in 2025 , according to a Marsh report.
Asia-Pacific claims notifications rose 76 per cent year-on-year in 2025, with total payouts exceeding $80 million — a regional record.
Financial statement-related breaches were the leading claims cause, representing 41 per cent of all warranty and indemnity notifications.
Tax liability insurance claims more than doubled year-on-year amid heightened regulatory scrutiny across Asia.
92 per cent of claims received substantive insurer responses within 30 days ; some insurers provided preliminary guidance within three days .
Demand for structured risk-transfer solutions in India is expected to grow further as deal sizes and cross-border complexity increase.
India accounted for 33 per cent of all transactional risk insurance claims notifications across Asia in 2025, according to a report released on Wednesday, 17 June by Marsh, a global insurance broker and risk advisor. The finding underscores the growing sophistication of India's mergers and acquisitions (M&A) market and the rapid mainstreaming of structured risk-transfer solutions among deal-makers in the country.
Asia-Pacific Claims Surge
Claims activity across the Asia-Pacific region witnessed a sharp acceleration in 2025, with notifications rising 76 per cent year-on-year. Marsh clients across the region received more than $80 million in claims payments during the year — the highest annual payout ever recorded for Asia. India's outsized one-third share of all notifications signals that the country is not merely a passive participant in this trend but is actively driving it.
What Is Triggering Claims
Financial statement-related breaches emerged as the single largest cause of warranty and indemnity insurance claims notifications across Asia, accounting for 41 per cent of all such claims. Tax liability insurance claims more than doubled year-on-year, reflecting heightened regulatory and tax scrutiny across the region. Notably, most claims in Asia were reported within two years of policy inception, suggesting that deal-related risks are crystallising faster than in previous cycles.
Why Indian Deal-Makers Are Adopting These Products
Growing deal sizes, rising cross-border transactions, increased regulatory scrutiny, and more sophisticated deal structures are collectively driving the adoption of transactional risk insurance among private equity firms and corporate acquirers in India. Sanjay Kedia, CEO and President of Marsh India, said transactional risk insurance is increasingly being viewed as a strategic tool to manage complexity, mitigate downside risks, and enhance deal certainty as India's deal landscape expands.
Insurer Response Times Improving
On the supply side, the market is also maturing. Some insurers are now providing preliminary coverage guidance within three days of claim notification, while 92 per cent of claims receive substantive responses within 30 days. Faster turnaround reduces deal uncertainty and makes these products more attractive to time-sensitive M&A transactions.
Outlook for India's M&A Risk Market
As India's M&A ecosystem continues to evolve, demand for structured risk-transfer solutions is expected to grow further, the report noted. This comes amid a broader global trend of transactional risk insurance moving from a niche product to a standard component of deal documentation. For India specifically, the combination of a buoyant deal pipeline and rising cross-border complexity makes further claims growth likely in the near term.
Point of View
Or do they signal that due diligence standards in the region's M&A deals remain inadequate? The answer will determine whether transactional risk insurance becomes a genuine risk-management tool or simply a crutch for under-scrutinised transactions.
NationPress
12 Aug 2026
Frequently Asked Questions
What is transactional risk insurance and why is it relevant to India?
Transactional risk insurance — which includes warranty and indemnity (W&I) and tax liability insurance — protects buyers and sellers in M&A deals against financial losses arising from breaches of representations or unexpected tax exposures. It is increasingly relevant to India as deal sizes grow, cross-border transactions rise, and regulatory scrutiny intensifies.
Why did India account for 33 per cent of Asia's transactional risk insurance claims in 2025?
India's large and growing M&A market, combined with more sophisticated deal structures and greater awareness of risk-transfer tools, drove its outsized share of claims notifications, according to the Marsh report. Rising cross-border activity and heightened regulatory complexity are also contributing factors.
What caused the 76 per cent surge in Asia-Pacific claims notifications in 2025?
The increase was driven by growing deal activity, larger transaction sizes, and a sharp rise in tax liability insurance claims — which more than doubled year-on-year — amid heightened regulatory and tax scrutiny across the region.
What was the record payout figure for Asia-Pacific in 2025?
Marsh clients across Asia-Pacific received more than $80 million in transactional risk insurance claims payments in 2025, the highest annual payout ever recorded for the region.
How quickly are insurers responding to claims?
According to the Marsh report, 92 per cent of claims receive substantive responses within 30 days, and some insurers now provide preliminary coverage guidance within just three days of claim notification — a significant improvement that supports faster deal resolution.
