Aon’s 2025 Transaction Solutions Global Claims Study has provided new insights into the landscape of M&A insurance claims in the Asia-Pacific region, with a particular focus on Australia and New Zealand.
The report, which draws on Aon’s internal claims data and insurer feedback, indicated that the frequency of warranty and indemnity (W&I) insurance claims remains elevated, especially in transactions involving smaller companies.
The study found that about one in five W&I policies placed in the Pacific resulted in a claim. Notably, 80% of these claims were associated with deals valued at less than AU$500 million.
This trend points to the ongoing exposure faced by small and mid-sized enterprises during M&A activity.
In response, insurers are increasingly offering synthetic warranties and reducing minimum premiums to better serve this segment.
The data highlighted several recurring causes for W&I claims in the region. Issues related to compliance with laws, tax matters, accuracy of financial statements, ongoing or potential litigation, and employment-related concerns were the most frequently cited triggers.
Employment claims, in particular, have become more common, reflecting the complexity of regulatory frameworks and evolving legal requirements.
A recurring theme in the claims data is the impact of insufficient disclosure during due diligence. Both general and specific disclosures that fall short of expectations continue to drive claims, underlining the importance of thorough pre-transaction reviews.
Analysis of claim timing showed that nearly a quarter of claims in the Pacific are reported within six months after a deal closes, while close to half are submitted within the first year.
The vast majority of claims are filed within three years, which corresponds with the standard duration of W&I insurance policies.
Aon’s claims manager for the Pacific, Ami Kalmath, stated that early and proactive engagement between clients, advisors, and insurers can facilitate more efficient claims resolution.
“The Pacific region continues to demonstrate the value of W&I insurance, particularly in smaller transactions where deal risks are often more concentrated,” she said. “Our data shows that when clients engage early and collaborate closely with their advisors and insurers, claims are resolved more efficiently and with better outcomes.”
Kris Karlsson, who leads M&A and transaction solutions for Aon in the Pacific, said the market is seeing more strategic use of W&I insurance.
“Buyers and sellers alike are leveraging W&I insurance not just as a deal enabler, but as a strategic tool to manage post-close risk. The data reinforces that this product is delivering real value when it matters most,” he said.
The findings from Aon’s study are consistent with recent data from WTW’s Quarterly Deal Performance Monitor, which showed that Asia-Pacific and Europe are currently leading global M&A activity.
In the first half of 2025, Asia-Pacific buyers outperformed their regional index by 3.9 percentage points, with 100 deals completed – an increase from 69 in the same period last year.
The uptick was largely driven by a surge in Chinese transactions, which rose from 12 to 33.
Meanwhile, North America continues to experience a downturn in deal volume.
The region recorded 160 deals in the first half of 2025, down from 292 four years ago.
Despite a slight improvement in performance, North American buyers have underperformed their index for 10 consecutive quarters.
