Transactional risk insurance demand surges in India as M&A deals near $5 trillion globally
Synopsis
India's dealmakers are no longer treating transactional risk insurance as optional — it's now a strategic necessity. With global M&A approaching $5 trillion and Asia premium rates up 8% year-on-year, the Marsh report reveals a market where insurance has moved from the margins to the centre of deal structuring, particularly in India's high-growth tech, healthcare, and infrastructure sectors.
Key Takeaways
Global M&A deal value surged nearly 37 per cent year-on-year , approaching $5 trillion in 2025, per the Marsh report.
Global transactional risk insurance limits rose 34 per cent to $91.6 billion ; policy volumes climbed 37 per cent .
In India , demand is accelerating in technology , healthcare , infrastructure , and energy sectors.
Corporate buyers now account for 54 per cent of insured transactions globally, a trend mirrored in India.
Asia premium rates rose 8 per cent year-on-year , signalling a more disciplined underwriting environment.
Marsh India forecasts India will remain a key M&A growth market through 2026 , backed by strong domestic fundamentals and cross-border interest.
Indian dealmakers are increasingly turning to transactional risk insurance to manage execution risks and drive deal certainty, as global mergers and acquisitions (M&A) activity stages a strong rebound in 2025, according to a new report by risk advisory firm Marsh released on 29 April 2025. The findings underscore a structural shift in how Indian corporates and private equity players are approaching complex transactions.
Global M&A Rebound Drives Insurance Demand
According to the Marsh report, global M&A deal value surged nearly 37 per cent year-on-year, approaching $5 trillion, with a sharp rise in large and mega deals. Alongside this, global transactional risk insurance limits climbed 34 per cent to $91.6 billion, while policy volumes rose 37 per cent — reflecting the growing role of insurance as a core component of deal-making rather than an afterthought.
This comes amid a broader maturation of the M&A market, with claims frequency and severity rising globally, signalling that buyers and sellers alike are demanding stronger risk protections at the negotiating table.
India's Growing Appetite for Structured Risk Solutions
In India, growing deal sizes, cross-border activity, and heightened regulatory scrutiny have accelerated demand for structured risk solutions. Transactional risk insurance is gaining particular traction in sectors such as technology, healthcare, infrastructure, and energy, where deal complexity and regulatory considerations are intensifying.
Larger and more complex transactions are driving demand for higher insurance limits and multi-layered coverage structures, the report noted. Notably, corporate buyers now account for 54 per cent of insured transactions globally — a shift increasingly visible in India as corporates pursue strategic acquisitions alongside private equity players.
What Industry Leaders Said
Sanjay Kedia, CEO and President, Marsh India, said,
Point of View
Smaller dealmakers who came late to this market may find coverage costlier and harder to structure. The real question is whether Indian regulatory frameworks — particularly around cross-border M&A scrutiny — will keep pace with the sophistication of risk products being layered onto these deals. If they don't, insurance becomes a patch on a structural gap rather than a genuine risk transfer mechanism.
NationPress
1 May 2026
Frequently Asked Questions
What is transactional risk insurance in M&A deals?
Transactional risk insurance protects buyers and sellers in M&A transactions against financial losses arising from breaches of representations and warranties, tax liabilities, or other deal-specific risks. It has become a core tool for enhancing deal certainty, particularly in complex cross-border transactions.
Why is demand for transactional risk insurance rising in India?
According to the Marsh report released on 29 April 2025, growing deal sizes, increased cross-border M&A activity, and heightened regulatory scrutiny are driving Indian dealmakers to adopt structured risk solutions. Sectors such as technology, healthcare, infrastructure, and energy are leading this demand.
How much did global M&A activity grow in 2025?
Global M&A deal value surged nearly 37 per cent year-on-year to approach $5 trillion in 2025, with a sharp rise in large and mega deals, according to the Marsh report. Transactional risk insurance policy volumes also rose 37 per cent in tandem.
Are insurance premiums for M&A deals getting more expensive?
Yes. Premium rates have increased across regions, with Asia seeing an 8 per cent year-on-year rise, according to the Marsh report. This signals a transition towards a more disciplined underwriting environment globally.
What is the outlook for India's M&A market?
Marsh forecasts that India will remain a key growth market for M&A, supported by strong domestic fundamentals, investor confidence, and increasing cross-border interest. Demand for transactional risk insurance is expected to accelerate further in 2026.
