Asian W&I insurance gathers steam

Author: Ashley Lee | Published: 27 Aug 2014

Warranty and indemnity (W&I) insurance is frequently used in European M&A deals. But the product hasn’t yet taken off in Asia – even in riskier emerging jurisdictions.

The insurance policies have proved popular elsewhere because they can protect either a buyer or seller from losses caused by inaccuracies in representations and warranties included in deal documentation.

It is available in Hong Kong, Singapore and Japan, as well as more emerging markets like China, Korea, Indonesia, Thailand and Malaysia. But it is not yet common across the region.

Lee Suet-Fern, senior director at Stamford Law, has recently seen W&I insurance being pushed quite hard by various insurance broker. But she doesn’t see a large take-up in Asean [Association of Southeast Asian Nations]. "At this stage it is not...