Aditya Samag, Private Equity and M&A Leader, Marsh India, mentioned a clear shift in India to larger, more complex transactions, particularly in high-growth sectors such as technology, healthcare, and infrastructure.In this environment, transactional risk insurance is no longer optional-it has become a strategic tool for investors and corporates to enhance deal certainty, manage regulatory exposures, and remain competitive in auction processes.”
Mumbai:Amid strong rebound of global mergers and acquisitions activity in 2025, Indian dealmakers are increasingly turning to transactional risk insurance to navigate complexity, manage execution risks, and drive deal certainty, a report by Marsh, the largest global re/insurance broker said on Wednesday.
Transactional risk insurance is gaining traction in India across both private equity and strategic corporate transactions, particularly in sectors such as technology, healthcare, infrastructure, and energy, where deal sizes and regulatory considerations are intensifying.
Larger and more complex deals are driving demand for higher insurance limits and multi-layered coverage structures, the report said.
Corporate buyers now account for a larger share of insured transactions globally (54 per cent), and a shift is increasingly visible in India as corporates pursue strategic acquisitions.
Claims frequency and severity are rising globally, signalling a maturing market and reinforcing the need for early engagement and robust deal structuring, the firm said.
“India’s transactional risk market continued to grow in 2025, with our team in the region placing 42 transactional risk programs, compared to 40 in the prior year,” informed the Marsh report.
Aditya Samag, Private Equity and M&A Leader, Marsh India, mentioned a clear shift in India to larger, more complex transactions, particularly in high-growth sectors such as technology, healthcare, and infrastructure.
“In this environment, transactional risk insurance is no longer optional-it has become a strategic tool for investors and corporates to enhance deal certainty, manage regulatory exposures, and remain competitive in auction processes,” Samag said.
Average premium rates increased modestly, from 1.3% to 1.34%, a 3% year-on-year increase, driven by increased uptake of policy enhancements and a sector mix led by financial institutions, renewables, communications, media, and technology, and real estate.
A notable milestone was our team’s placement of W&I insurance on the first transaction involving a public sector undertaking, supporting one of the largest M&A deals in India in 2025 and marking the growing adoption of W&I insurance as an exit tool.
Regulatory amendments issued by the IRDAI, effective on April 1, 2025, materially reshaped the domestic underwriting landscape.
While approximately 20 insurers historically participated in India W&I placements, as of January 2026 only seven insurers remain able to support India-domiciled insureds through local fronting and ceding arrangements, according to the report.
Aggregate maximum capacity for non-India insureds typically reaches US$800 million to US$850 million, while India-domiciled placements are now generally limited to between US$150 million and US$200 million.
Deal teams should factor these limitations into transaction-structuring discussions, said the report..
Further, pricing trends have shifted, with premium rates increasing across regions, including Asia (up 8 per cent YoY), indicating a transition towards a more disciplined underwriting environment.
The report forecast that India will remain a key growth market for M&A, supported by strong domestic fundamentals, investor confidence, and increasing cross-border interest.
The report from Marsh said that M&A deal value surged nearly 37 per cent year-on-year to approach $5 trillion globally, with a sharp rise in large and mega deals.
Similarly in India, growing deal sizes, cross-border activity, and regulatory scrutiny accelerated demand for structured risk solutions.
“As India continues to position itself as a global investment hub, the ability to effectively manage transaction-related risks will be critical,” said Sanjay Kedia, CEO & President, Marsh India.
“We are seeing growing awareness and adoption of transactional risk solutions among Indian dealmakers, especially as cross-border transactions and regulatory complexities increase. This trend is expected to accelerate further in 2026 as businesses seek greater resilience and confidence in deal execution,” he added.
The report noted a 34 per cent increase in global transactional risk insurance limits to $91.6 billion, and a 37 per cent rise in policy volumes, reflecting the increasing role of insurance as a core component of deal-making.