Global M&A Insurance Trends: 2025 Review and 2026 Outlook

Gallagher's report, Global M&A Insurance 2025 Review and 2026 Outlook, examines the performance of the transactional insurance market in 2025 and provides an outlook for 2026. The report indicates that the market remained active and continued to expand, particularly within private capital and corporate transactions, with increased submission volumes and ongoing product development across warranty and indemnity (W&I), tax, insurance due diligence, and contingent risk solutions. 

Submission volumes rose in 2025, alongside a modest increase in average deal value, reflecting continued demand for transactional insurance solutions across a broad spectrum of deal sizes and geographies, according to the report. Insurers expanded their appetite to support transactions ranging from smaller enterprise values below $5 million to multi-billion-dollar deals, while new managing general agents and insurers entered the market, contributing to competitive dynamics. 

Premium pricing trends showed signs of stabilization after a prolonged period of decline, while retention levels continued to decrease across much of the market, per Gallagher. The report notes that "tipping-to-nil" structures became more widely available, although some insureds opted for higher retentions based on their risk tolerance and transaction-specific considerations. 

Regional activity varied, with the UK and EEA experiencing strong deal flow supported by competitive pricing and broad coverage, while the United States market was shaped by liquidity constraints and the growing importance of secondary transactions and continuation vehicles, according to the report. In Canada, activity shifted toward smaller transactions following early-year disruptions, while Asia-Pacific demonstrated resilience with modest growth in deal volumes and continued insurer competition. 

Other regions also showed notable developments, with deal volumes increasing in the Middle East despite geopolitical uncertainty, and insurers expanding their participation in African markets, per Gallagher. South America experienced growing adoption of representations and warranties insurance, particularly in infrastructure, energy, and real estate sectors, reflecting broader geographic diversification of transactional insurance usage. 

Product innovation remained a central theme in 2025, with tax insurance experiencing increased demand for both transaction-related and non–mergers and acquisitions (M&A) risks, according to the report. Contingent risk insurance gained traction in restructuring and financing scenarios, while insurance due diligence continued to play a role in identifying risks and supporting transaction execution. 

Claims activity remained elevated, with a meaningful proportion of policies generating notifications and a smaller percentage resulting in payments, according to Gallagher. The report highlights that loss severity persisted, with some claims reaching full policy limits, and that claims handling and service quality have become increasingly important factors in insurer selection. 

Private equity continued to be a key driver of transactional insurance demand, supported by significant available capital and the need for risk mitigation tools across the investment lifecycle, per the report. Transactional insurance products were used not only for deal execution but also for portfolio risk management and governance considerations. 

Looking ahead, the outlook for 2026 is described as cautiously optimistic, with stabilizing interest rates, strong balance sheets, and available investment capital expected to support continued deal activity, according to the report. However, ongoing geopolitical risks, including the Middle East conflict and its potential impact on energy markets and supply chains, may introduce volatility into the transaction environment.