Australia and New Zealand continue to see a high frequency of warranty and indemnity (W&I) insurance claims, especially in small-to-mid-market deals.
This is according to new insights released by Aon from its 2025 Transaction Solutions Global Claims Study.
Drawing from proprietary data and insurer surveys, Aon reported that 20% of W&I policies in the Pacific region had claims filed, with 80% of those stemming from transactions under AU$500 million (approximately NZ$545 million).
In the past year alone, Aon’s clients in the region recovered around AU$30 million in paid claims, with nearly 60% of claim notices resulting in successful payouts.
The top causes of claims in New Zealand included compliance breaches, tax issues, and inaccuracies in financial disclosures. Inadequate or incomplete information during due diligence was a recurring theme across claim cases, the study found.
Timing also played a significant role: nearly a quarter of claims were reported within six months of closing, with half reported within the first year. Almost all claims were lodged within three years, aligning with the standard W&I policy coverage period.
“The one-in-five frequency of claims in the Pacific reflects the tangible value of W&I insurance in safeguarding deal value,” said Ami Kalmath, claims manager for financial specialties and transaction solutions, Pacific at Aon. “Early engagement and collaboration with insurers and advisors lead to stronger claim outcomes.”
Aon also recently announced the appointment of Adrienne Booth as executive director, transaction solutions, New Zealand. Booth, who returns from senior global roles in Aon’s UK operations, will lead the firm’s expansion of M&A risk solutions across the country.
How are you using insurance to protect your deal value? Let us know in the comments.
