New Delhi, April 29: In 2025, the rise in global mergers and acquisitions has led to an increased demand for transactional risk insurance from Indian companies. This surge is attributed to the risks associated with deal completion and execution, as highlighted in a report released on Wednesday.
According to Marsh’s report, the value of mergers and acquisitions globally has risen by approximately 37% year-on-year, nearing $5 trillion, with a significant increase in the number of large deals.
The report further indicates that deal sizes in India are also rapidly increasing, prompting a heightened demand for structured risk solutions due to regulatory scrutiny.
Sanjay Kedia, CEO and President of Marsh India, stated, “As India establishes itself as a global investment hub, the ability to effectively manage transaction-related risks will be crucial.” He added, “Awareness of transactional risk solutions is growing among Indian dealmakers, especially due to the rise in cross-border transactions and regulatory complexities. This trend is expected to accelerate in 2026 as companies seek more flexibility and confidence in deal execution.”
The report noted a 34% increase in global transactional risk insurance limits, reaching $91.6 billion. Additionally, there has been a 37% rise in policy volume, reflecting the increasing role of insurance as a key component of negotiations.
The prevalence of transactional risk insurance is on the rise in both private equity and strategic corporate transactions in India, particularly in sectors like technology, healthcare, infrastructure, and energy, where deal sizes and regulatory considerations are becoming more complex.
The report also stated that larger and more intricate deals are driving the demand for insurance and multi-layered coverage structures.
Globally, corporate buyers now account for a majority (54%) of insured transactions, and this shift is rapidly becoming evident in India due to strategic acquisitions.
The firm noted that the frequency and severity of claims are increasing globally, indicating a mature market and underscoring the need for early engagement and robust deal structures.
Moreover, there has been a shift in pricing trends, with premium rates rising across all regions, including Asia, reflecting an 8% increase compared to the previous year. This signals a transition towards a more disciplined underwriting environment.
The report predicts that, supported by a strong domestic base, investor confidence, and growing cross-border interest, India will remain a key growth market for mergers and acquisitions.
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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