Mumbai, Apr 30: As global M&A activity rebounded strongly in 2025, Indian dealmakers are increasingly turning to transactional risk insurance to navigate complexity, manage execution risks, and drive deal certainty, according to the latest insights from Marsh’s Transactional Risk Insurance 2025: Year in review report.
Globally, M&A deal value surged nearly 37% year-on-year to approach USD 5 trillion, with a sharp rise in large and mega deals. This trend is mirrored in India, where growing deal sizes, cross-border activity, and regulatory scrutiny are accelerating demand for structured risk solutions. Marsh recorded a 34% increase in global transactional risk insurance limits to USD 91.6 billion, alongside a 37% rise in policy volumes, reflecting the increasing role of insurance as a core component of deal-making.
Key India insights
In India, transactional risk insurance is gaining traction 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.
- Deal complexity: Larger and more complex deals are driving demand for higher insurance limits and multi-layered coverage structures
- Buyer shift: Corporate buyers now account for a larger share of insured transactions globally (54%), a shift increasingly visible in India as corporates pursue strategic acquisitions
- Claims trends: Claims frequency and severity are rising globally, signalling a maturing market and reinforcing the need for early engagement and robust deal structuring
Additionally, pricing trends have shifted, with premium rates increasing across regions, including Asia (up 8% year-on-year), indicating a transition toward a more disciplined underwriting environment.
Sanjay Kedia, CEO & President, Marsh India, said, “As India continues to position itself as a global investment hub, the ability to effectively manage transaction-related risks will be critical. 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.”
Aditya Samag, Private Equity and M&A Leader, Marsh India, said, “India is witnessing a clear shift toward 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.”
Looking ahead, India is expected to remain a key growth market for M&A, supported by strong domestic fundamentals, investor confidence, and increasing cross-border interest. However, global geopolitical uncertainty and evolving regulatory frameworks may continue to influence deal activity and risk strategies.
Transactional risk insurance is therefore expected to play a critical role in enabling deal certainty, bridging valuation gaps, and protecting against downside risks in India’s evolving deal landscape.
