Asia-Pacific M&A insurance claims climb on complex deals

Aon secured more than $26m in regional payouts over the past three years.

Claims under transaction risk insurance are increasing across Asia-Pacific as the region's mergers and acquisitions (M&A) market matures, with larger and more complex deals driving higher-value losses.

Warranty and indemnity (W&I) insurance and standalone tax liability insurance are becoming more widely used in transactions across markets, including India, Singapore and South Korea, supported by greater underwriting capacity and broader adoption, according to Aon's 2026 Global Transaction Solutions Claims Study.

Aon said APAC claims trends are now broadly in line with global patterns, with disclosure issues, inaccurate financial statements, compliance breaches and tax-related exposures amongst the main causes of claims. 

Claims activity has risen steadily over the past decade as more companies adopt transaction risk insurance. 

In APAC, Aon secured more than $26m in claims over the past three years, including several high-value cases. 

In North America, clients recovered more than $1b in transaction solutions claims in 2025, with average payouts exceeding $10m and median payments of more than $8.2m, both record highs.

The report said claims were initially concentrated in Australia and New Zealand, where W&I insurance was first adopted, but growth is now being driven by India, South Korea and Southeast Asia.

Standalone tax liability insurance has also become a regular feature in Indian transactions and is gaining wider use in South Korea, Japan, China and Australia. 

These policies are commonly used to cover identified tax risks such as capital gains tax exemptions, withholding taxes and net operating losses. Aon expects claims activity to increase further as more policies mature.

The study found that APAC claims are increasingly linked to large-cap and cross-border transactions, with several claims exceeding $10m. 

Tax and regulatory issues account for some of the region's largest and most complex claims, often emerging years after deals are completed.

Whilst operational and disclosure-related claims usually arise within the first year after completion, tax-related claims may not be reported until more than five years after a policy begins because of audit cycles and regulatory enforcement timelines.

Across sectors, common claim triggers include undisclosed contracts and liabilities, differences between reported financial results and actual performance, regulatory and licensing breaches, and tax disputes involving transfer pricing, customs duties and withholding obligations.

The report also identified sector-specific risks. Consumer and retail transactions are more exposed to regulatory scrutiny, customer liabilities and disclosure gaps.

Technology and payments deals face licensing, certification and contract concentration risks, whilst cross-border transactions are more likely to involve tax and regulatory issues linked to multinational structures and financing arrangements.

According to the study, W&I and tax insurance are becoming a standard part of transaction planning, particularly for large and cross-border deals where sellers offer limited recourse. 

Globally, Aon said it has supported clients on more than 2,000 transaction risk insurance claims and secured more than $3b in recoveries.