India records 33 pc of Asia's transactional risk insurance claim notifications
New Delhi, June 17
India accounted for one-third of all transactional risk insurance claims notifications in Asia during 2025, underscoring the growing adoption of such insurance solutions amid rising deal activity and increasing sophistication in the country's mergers and acquisitions market, according to a report released on Wednesday.
The report by Marsh -- a global insurance broker and risk advisor -- showed that India contributed 33 per cent of all transactional risk insurance claims notifications in Asia during the year.
Claims activity across Asia-Pacific witnessed a sharp rise, with notifications increasing 76 per cent year-on-year in 2025, it said.
Marsh clients in the region received more than $80 million in claims payments during the year, the highest annual payout recorded for Asia.
Growing deal sizes, rising cross-border transactions, increased regulatory scrutiny and more sophisticated deal structures are 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.
The report noted that financial statement-related breaches emerged as the leading cause of warranty and indemnity insurance claims notifications across Asia, accounting for 41 per cent of all such claims.
It highlighted a sharp increase in tax liability insurance claims, which more than doubled year-on-year amid heightened regulatory and tax scrutiny across the region, adding that most claims in Asia were reported within two years of policy inception.
Moreover, 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.
India's M&A ecosystem continues to evolve, demand for structured risk-transfer solutions is expected to grow further, supporting smoother deal execution and better protection against transaction-related risks, the report added.
— IANS
Reader Comments
Claims up 76% YoY is huge! But it also means many deals had hidden risks. As someone in finance, I see this as a wake-up call – due diligence is still key, insurance is just a safety net. 👍
Good to see claims paid quickly – 30 days for most is impressive. But tax liability claims doubling is worrying. Our tax regime still has too many grey areas. More clarity would reduce these claims. Just saying...
Interesting data from an international perspective. India's M&A growth is impressive, but 41% claims from financial statement breaches shows audits need more rigour. Still, $80M payout in Asia is a positive sign for risk management.
As a small business owner, I wonder if this will trickle down to smaller deals. Right now, transactional risk insurance feels like a big-ticket item for PE firms. Hope it becomes accessible to mid-sized companies too. 🤞
Proud of India leading the pack! But one aspect: insurance shouldn't be a crutch for poor due diligence. The fact that financial statement breaches top the list (41%) suggests some acquirers are cutting corners. Let's use this data to improve, not just insure.
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