W&I insurance has grown in popularity consistently over
the past decade, which is driving tough competition –
and innovation – between insurers.
Market participants are already seeing firms beginning to
innovate beyond the traditional cover.
"Innovations include synthetic W&I cover, allowing use
of the product for public-to-private deals, and carve outs from
listed businesses. Due to publicly-available information, no
warranties are usually offered," said one source who leads on
transactional risk and M&A for a global insurance
Using a synthetic W&I product is where there are no
warranties given by the seller to the buyer, therefore the
W&I insurer drafts and covers a bespoke warranty package
outside of the transaction documentation (which does not have
the protection of the usual transactional disclosure
The source has also noticed a new type of protection: a
policy covering the risk of new breaches...