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
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...