White Paper

When It Comes to Understanding the Current R&W Claims Landscape, There Is One Crucial Trend You Can’t Ignore

Representations and warranties claims are not new, but understanding the trends behind an increase in claims severity is the first step in managing the risk.

White Paper Summary

Global merger and acquisition activity has been on the rise in recent years. Though the pandemic has created a slowdown on activity, many expect deals to rebound in the near term. Reports from 2019 have shown that M&A deals have resulted in more than $10 trillion in domestic transactions since 2013.

Historically, M&A buyers would seek indemnification from the seller, including an escrow of approximately 10% of the purchase price as a backstop against such indemnification obligations.

Enter representations and warranties insurance.

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AIG is a leading international insurance organization serving customers in more than 80 countries and jurisdictions.

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