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Business Wire
8 hours ago
- Business
- Business Wire
New Heights for M&A Insurance Claims Payouts, Aon Study Reveals
CHICAGO--(BUSINESS WIRE)-- Aon plc (NYSE: AON), a leading global professional services firm, today announced the latest edition of its Global Transaction Solutions Claims Study, informed by Aon's proprietary claims data and surveyed insurer data. The study reveals there has been a significant increase in claims activity around Representations and Warranties (R&W) insurance, also known as Warranty and Indemnity (W&I) insurance, with 2024 being the highest year on record for M&A insurance payouts. Aon's North America claims team has helped facilitate over 100 paid claims for clients in the last three years, including 39 in 2024 alone, which recovered over $300m, with a median payment of $5.5m. Activity in Europe, the Middle East and Africa (EMEA) continues to increase year-over-year, with claims notifications up by 26 percent in 2024 and the quantum of W&I claims payments up significantly, with recoveries in 2024 alone accounting for more than 35 percent of all paid claims for Aon clients in the region to date. The study analyzes claims severity and payment trends in EMEA against the wider backdrop of regional M&A deal activity, with a spotlight on key jurisdictions and success stories. In the Asia Pacific (APAC) region, a number of key trends have emerged including an increasing variety of categories of W&I breaches being claimed in Asia, including an increasing proportion of regulatory, litigation-related and disclosure-related claims, a high incidence of disclosure-related breaches in Australia and New Zealand (ANZ) representing almost 30 percent of W&I claims, as well as a consistent relatively high frequency of claims in smaller transactions particularly in ANZ. Asia has also seen a larger number of W&I and tax liability policy claims coming out of India-based risks in 2024 (making up more than 30 percent of all Asia claims), with tax risks relating to both cross-border treaty matters as well as fully domestic Indian tax risks. Drivers of R&W and W&I claims In North America, R&W claims were driven by alleged breaches of warranties relating to compliance with laws (20 percent), followed by tax (17 percent) and material contracts (13 percent). In EMEA, breach of tax warranties (26 percent) represented the top driver by frequency for W&I claims, but the biggest drivers of paid claims were breaches of warranties relating to financial statements (27 percent), compliance with laws (13.2 percent) and material contracts (11 percent). In APAC, the top W&I claims drivers were breaches of warranties relating to material contracts (19 percent) and legal compliance, tax and license permits, all at 12.5 percent of claims. Cross-industry comparisons Aon's Global Transaction Solutions Claims Study analyzes industry sectors in North America to draw comparisons between deals, claims and payments and the issues driving loss. Despite the different risk profiles between sectors, there is a remarkably even distribution across the identified industries for claim frequency and severity when compared to the percentage of deals they comprise in the overall deal pipeline. Dealmakers can apply the sector insights gathered to inform their approach for subsequent M&A activity in that industry, while insurers may be comforted that there is no one 'high risk' industry for R&W breaches. 'Understanding global M&A insurance claims trends isn't just insightful — it's essential to helping our clients navigate risk and make smarter deal decisions. R&W insurance has become an embedded part of dealmaking and risk mitigation, as evidenced through this most recent record year in claims payouts. It offers critical protection that enables transaction execution with greater confidence,' said Stephen Davidson, global head of claims at Aon. 'This study reinforces that while the coverage itself is vital, the real key to successful claims outcomes lies in collaboration. When insurers, brokers and insureds work together, we consistently see fair, efficient resolutions that preserve deal value and support long-term client success.' Other key findings from the report include: Aon has been involved in over 1,600 notified R&W and W&I claims, helping its clients to secure over $1.75bn in payments globally. More than $500m has been paid to Aon clients on notices submitted more than 12 months post-close of the transaction. To the end of 2024, the Aon claims team has worked with insurers to recover almost $200m in paid claims for Aon's EMEA clients. A steady rise in the rate of notifications across Asia shows insureds becoming more aware of policy benefits and the importance of engaging with their broker at the inception of the claim. About Aon Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.
India Today
29-05-2025
- General
- India Today
Elsa-3 capsized due to improper container loading, says maritime expert
The sinking of the Liberian-flagged container ship MSC Elsa-3 off the Kerala coast on May 25 has raised urgent questions about maritime safety and environmental Naveen Singhal, a Singapore-based Marine and Management Consultant and an empanelled specialist with the International Maritime Organisation (IMO), has attributed the disaster to improper container loading practices.'The vessel had some stability issues. It had begun listing to its starboard on Saturday. One of the things could be that maybe some of the container lashings. There's a very common practice where declared container loads are incorrect. What is stated in the cargo manifest may actually not be so—there may be actually much more than that. This incorrect weight declaration is an old story,' Captain Singhal He highlighted that shippers sometimes under-declare container weights to reduce freight costs, a practice that can have catastrophic consequences. 'If you have a top-heavy load, obviously it's going to create problems and lead to capsizing situations. This is a problem that's not just in Asian countries, it's an international problem. This problem is there in Europe and the US and it's not easy to handle this,' he said. He highlighted that shippers sometimes under-declare container weights. (Photo: PTI) Captain Singhal pointed out that while cranes (gantries) can weigh containers as they are loaded, the sheer speed of operations—often a container a minute—makes it difficult to verify every this needs to eventually be fully automated, wherein the incorrect calculations, incorrect weight declared in containers is captured right at the time when it's lifted in the gantry so that it sends an alarm and the ship staff knows, but that system doesn't exist today,' he ENVIRONMETAL FALLOUTAs for the environmental fallout, Captain Singhal said, 'The vessel has sunk in deep waters. It was carrying calcium carbide and calcium carbide has a reaction with water, but now that the vessel is sunk, so whatever reaction will be there will be deep, but it's likely that it generates some acetylene gas. So even if it does generate, it'll just bubble up over the surface.'He added, 'About six to eight containers have been washed ashore of which a few have landed on the coast and the 13 of them supposedly contain hazardous cargo. Now what is the nature of this hazardous cargo also has different grades. So what the nature of this hazardous cargo is still not known.' Regarding liability and response, Captain Singhal clarified, 'All of this will be handled by the Protection and Indemnity insurance (P&I insurance) provided by a P&I club. The hull and machinery is covered by the marine insurance company, cargo cover for cargo owners. The P&I club covers the open-ended risks which traditional insurers are loath to insure. This includes third-party damage to cargo—environmental damage caused by oil spills and pollution.'advertisement'The nodal agency to coordinate this entire operation will be the Director General of Shipping. The DG Shipping has offices all over the coast and Cochin is the one which will be monitoring closely the entire operations post the incident. It is in India's Exclusive Economic Zone or EEZ. To that extent, the government of India has a role in monitoring and calling for an investigation to be conducted by the flag state, Liberia,' he incident underscores the urgent need for stricter oversight and technological upgrades in global shipping to prevent similar disasters in the future.(With inputs from Sandeep Unnithan)
