What's Happening?
The Asia-Pacific (APAC) tax insurance market is experiencing rapid growth, with placements in non-M&A contexts rising to 20% in 2024. According to Marsh's Transactional Risk Global Tax Bulletin 2025, the
demand for tax insurance is increasing due to regulatory complexity and cross-border investments. Companies are using tax insurance to manage risks related to corporate restructurings, refinancing, and balance sheet management. The market's sophistication is evident as tax insurance covers a wide range of risks, including income classification, withholding tax exposures, and indirect tax disputes.
Why It's Important?
The expansion of tax insurance beyond traditional M&A transactions signifies a shift in how companies manage financial risks. This development is crucial for businesses operating in APAC, as it provides a tool to navigate complex regulatory environments and protect against potential tax liabilities. The growth of tax insurance reflects the region's evolving financial landscape, offering companies a strategic advantage in managing cross-border transactions and regulatory compliance.
What's Next?
As the APAC tax insurance market continues to grow, companies may increasingly adopt these products to mitigate risks associated with international operations. Insurers are likely to expand their offerings to cover more jurisdictions and complex tax scenarios, enhancing their competitive edge in the region.
Beyond the Headlines
The rise of tax insurance in APAC could lead to increased collaboration between insurers and legal advisors, fostering innovation in risk management solutions. This trend may also influence global insurance practices, as companies seek comprehensive coverage for diverse financial risks.
