Transactional risk insurance demand rises in India amid surge in large M&A deals

NEW DELHI: Amid strong rebound of global mergers and acquisitions (M&A) activity in 2025, Indian dealmakers are increasingly turning to transactional risk insurance to navigate complexity, manage execution risks, and drive deal certainty, a report said on Wednesday.

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.

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.