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Aon plc said in a press release that transaction risk products including warranty and indemnity insurance and standalone tax liability coverage have become central to dealmaking across Asia. Growing underwriting capacity and wider adoption in India, Singapore and Korea have enabled their use in structuring and risk management for mergers and acquisitions. Martijn de Lange, managing director of Transaction Solutions in APAC for Aon, said in the release, “As the transaction risk market across the Asia Pacific region continues to evolve, claims outcomes are shaped not only by policy coverage but also by the quality of diligence, financial analysis and post-completion integration.” He added that greater claims frequency and higher-severity outcomes particularly in large and cross-border transactions reinforce the value of these solutions while the region increasingly influences global trends.
The Aon assessment found that claims activity has risen steadily in the Asia-Pacific region over the past decade as product adoption expanded offering deeper insight into frequency, severity and loss drivers. In North America clients recovered more than one billion dollars on transaction solutions claims during 2025 with average payouts exceeding 10 million dollars and median payments reaching more than 8.2 million dollars marking record highs. The study placed APAC recoveries above 26 million dollars across the past three years including several high-severity claims while early activity that concentrated in Australia and New Zealand has given way to a second wave of growth in India, South Korea and Southeast Asia.
According to the claims study APAC matters are increasingly defined by high-severity losses on large-cap and cross-border transactions with multiple cases surpassing 10 million dollars. Tax and regulatory exposures often generate the region’s largest and most complex claims emerging years after completion and producing a distinct long-tail risk profile. Operational and disclosure issues typically appear within the first year after closing yet tax-related notifications may arrive more than five years after policy inception reflecting audit cycles and enforcement practices throughout the region.
The Aon study listed disclosure issues, financial statement inaccuracies, compliance breaches and tax-related exposures as the leading drivers of claims in the Asia Pacific in line with global experience. Typical scenarios encompass undisclosed or misrepresented contracts and liabilities gaps between reported financials and actual performance regulatory or licensing shortfalls in heavily supervised sectors and tax disputes over transfer pricing customs duties or withholding obligations. These patterns have reinforced client confidence that the products deliver value when losses materialize.
Real estate and infrastructure deals have produced claims connected to asset condition environmental liabilities and lease obligations the report showed. Consumer and retail transactions have encountered losses stemming from regulatory scrutiny customer liabilities and disclosure shortfalls while technology and payments activity has involved licensing certification and contract concentration risks. Cross-border structures frequently face tax and regulatory exposures arising from multinational operations and complex financing arrangements according to the study.
As claims experience deepens clients are becoming more confident in pursuing recovery and leveraging these solutions as part of their deal strategy Anita Vivekananda managing director of Transaction Solutions in APAC for Aon said in the release. “At the same time, the growing prevalence of long-tail tax and regulatory exposures is contributing to a more complex risk landscape, making transaction insurance an increasingly important consideration for organizations pursuing growth and investment opportunities,” she added. The findings indicate that warranty and indemnity and tax insurance are now routinely integrated into transaction planning especially where traditional seller recourse remains limited.
A separate assessment by Proskauer on global M&A insurance trends found that Asia-Pacific conditions stayed highly competitive in 2025 with rates and retentions continuing to decline and underwriting appetite expanding across sectors. Regional M&A volumes improved with notable contributions from India, South Korea and Japan while China exhibited signs of stabilisation. The broader Asia-Pacific insurance market reached 2.63 trillion dollars in 2025 and is projected to expand to 3.04 trillion dollars this year according to Market Data Forecast while Aon has supported more than 2,000 claims and secured over three billion dollars in global recoveries across its transaction solutions portfolio.
