M&A insurance comes of age in Asia

Author: Lizzie Meager | Published: 23 Apr 2019

M&A insurance covering warranties and indemnities (W&I) has become increasingly sophisticated in the Asia-Pacific region as its popularity has exploded.

Insurance underwriters speaking at IFLR’s Asia M&A forum in Hong Kong earlier this month said that prices are now coming down as coverage extends across the region.

"We’ve seen significant growth in appetite for W&I insurance in emerging markets since we began writing policies in Asia around a decade ago," said Will Gibson, M&A underwriter at AIG in Hong Kong. "We now have a team of 10 focused on underwriting, as well as dedicated W&I claims handlers."

Seventy-five percent of attendees at the IFLR event said they expected to see a further rise in the use of W&I insurance in Asia-Pacific over the next 12 months.

"For the expenditure of an insurance premium, parties...