Marsh Report Highlights Rising Transactional Risk Claims Activity in 2025

Marsh's Global Transactional Risk Insurance Claims Report 2026 found that transactional risk insurance claims activity increased significantly in 2025, with higher notification volumes across most regions and insurers paying nearly $650 million, net of retentions, to Marsh clients during the year. According to Marsh, a relatively small number of large claims accounted for the majority of total payments.

According to the report, 665 claims notifications were recorded globally across 386 transactions in 2025. That represented a 34 percent increase in total notifications compared with 2024 and a 26 percent increase in the number of transactions that generated at least one claim notification. Marsh said growth was particularly notable in the United Kingdom and Europe.

The report found that claims continue to be reported relatively soon after policy inception. Globally, 42 percent of representations and warranties claim notifications were reported within the first year of policy inception, while 59 percent were reported within 18 months. Per the report, only 9 percent of notifications were received more than 36 months after inception.

Marsh reported that claim severity remained concentrated among a small number of large losses. Payments under $1 million accounted for approximately 49 percent of claims paid but represented just over 3 percent of total amounts paid. By contrast, payments exceeding $20 million represented less than 8 percent of claims paid but accounted for roughly 43 percent of aggregate payments. According to the report, this distribution highlights the impact of low-frequency, high-severity events.

Breaches involving financial statements continued to be the primary driver of paid losses globally. Per Marsh, financial statement breaches accounted for 52 percent of total claim payments in 2025, while tax-related breaches represented just over 1 percent of total payments despite remaining a common source of notifications. The report noted that financial statement claims often have a greater impact because misstatements can directly affect valuation and cash flow calculations.

In North America, Marsh clients reported 289 new claims during 2025, a 9-percent decrease from the prior year, while total claim payments increased 39 percent to more than $412 million. According to the report, financial statement breaches remained the largest source of both claim notifications and claim payments in the region.

The United Kingdom experienced a sharp increase in claims activity. Marsh said warranty and indemnity insurance claim notifications increased more than 150 percent year over year, while claim payments exceeded $105 million. Financial statement, compliance, and material contract breaches accounted for the largest share of payments in the region, according to the report.

Europe also recorded substantial growth in claims activity, with 240 notifications reported in 2025, representing a 103 percent increase from the previous year. Per the report, tax breaches were the most frequently notified claim type, while financial statement breaches generated 64 percent of aggregate paid amounts in the region.

Marsh concluded that rising notification volumes, combined with the concentration of losses in financial statement-related claims, continue to shape the transactional risk insurance market. According to the report, the findings underscore the importance of financial due diligence, timely claims notification, and effective claims management throughout the transaction lifecycle.