India`s evolving M&A landscape fuels demand for risk solutions
Key findings from the India market include:
- Marsh facilitated some of Asia’s largest transactional risk programs, including a record-breaking USD 840 million insurance cover for a single deal in India
- The total number of policies placed for Indian transactions increased by 30% compared to 2023
- The pricing environment remains favourable due to increased competition among insurers
- Average premium rates for Warranty & Indemnity insurance policies declined by 26%, falling from 1.8% to 1.3%
- The healthcare, communications & media, and technology (CMT) sectors witnessed the most substantial growth in transactional risk insurance usage
Market confidence remained strong, with M&A activity sustaining momentum from 2023 into 2024. A key indicator of this confidence was the 26% decline in average premium rates (from 1.8% to 1.3%), making insurance more attractive for dealmakers. Sellers increasingly adopted sell-buy flips and pre-exclusivity underwriting, enhancing competition among bidders and further integrating transactional risk insurance into deal structures.
Commenting on the report, Sanjay Kedia, Chief Executive Officer, Marsh McLennan India President & CEO, Marsh India, states that, "India’s transactional risk insurance market has reached an inflection point, shaped by larger deal sizes, increased cross-border activity, and more nuanced underwriting. The transactional risk insurance market in India is currently valued at USD 146 billion and is experiencing a steady growth rate with a CAGR of 10-12%. The placement of a USD 840 million insurance cover—the largest of its kind in Asia—signals a deepening market maturity and the strategic role of insurance in navigating complex transactions. As deals move faster and become more tailored, insurance is no longer a safeguard but a catalyst enabling precision, speed, and confidence in dealmaking."
Aditya Samag, Head of Private Equity and M&A, Marsh India, said, “India’s M&A market continues to demonstrate strong momentum, with sustained deal activity across sectors like healthcare, technology, and financial services. The 30% increase in transactional risk policies placed in 2024, coupled with a significant reduction in premium rates, showcases the confidence of dealmakers in using insurance as a strategic enabler. With record-breaking deals and competitive auctions becoming more common, we see a growing reliance on risk transfer solutions to enhance deal certainty and unlock greater value for investors.”
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