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What is the story about?
India has emerged as one of Asia's largest sources of insurance claims arising from mergers and acquisitions (M&A), highlighting growing scrutiny of financial, tax and compliance issues that surface after deals are completed.
According to Marsh's Global Transactional Risk Insurance Claims Report 2026, India accounted for 33% of all transactional risk insurance claims notifications in Asia-Pacific during 2025, second only to Japan's 40%. Claims notifications across the region rose 76% year-on-year, reflecting increasing use of warranty and indemnity (W&I) and tax liability insurance in dealmaking.
Transactional risk insurance protects buyers and investors against losses arising from breaches of warranties, financial misstatements, tax exposures or compliance issues discovered after an acquisition closes.
The report said India's claims activity increased alongside the growing adoption of such insurance products in complex transactions. Overall claim notifications in India rose 30% year-on-year, while notifications under standalone tax liability policies increased 40%.
Marsh said the trend reflects a maturing market where insurance is becoming a standard part of deal execution, particularly in private equity transactions. Private equity-backed deals accounted for 92% of claims activity in India during 2025.
Financial statement-related issues emerged as the largest source of claims across Asia-Pacific, accounting for 41% of warranty and indemnity notifications in 2025. The report noted that the increase in financial statement-related losses marked a break from the previous five years, when tax-related breaches were the most common source of claims.
Within India, tax-related issues remained the most frequent trigger for notifications under W&I policies, accounting for half of all claims, while breaches related to compliance with laws represented about a third of notifications.
The report also pointed to rising tax-related risks across the region. Tax liability insurance claims more than doubled in Asia-Pacific during 2025, resulting in the highest number of such claims since Marsh began tracking the data.
Claims severity is also increasing. Marsh reported that more than $80 million was paid to clients in Asia-Pacific during 2025, including a tax liability claim exceeding $75 million, making it a record year for claims payouts in the region.
The findings suggest that as India's M&A market grows in scale and sophistication, post-deal disputes and insurance claims are becoming a more common feature of transactions, particularly around financial reporting, tax exposures and regulatory compliance.
According to Marsh's Global Transactional Risk Insurance Claims Report 2026, India accounted for 33% of all transactional risk insurance claims notifications in Asia-Pacific during 2025, second only to Japan's 40%. Claims notifications across the region rose 76% year-on-year, reflecting increasing use of warranty and indemnity (W&I) and tax liability insurance in dealmaking.
Transactional risk insurance protects buyers and investors against losses arising from breaches of warranties, financial misstatements, tax exposures or compliance issues discovered after an acquisition closes.
The report said India's claims activity increased alongside the growing adoption of such insurance products in complex transactions. Overall claim notifications in India rose 30% year-on-year, while notifications under standalone tax liability policies increased 40%.
Marsh said the trend reflects a maturing market where insurance is becoming a standard part of deal execution, particularly in private equity transactions. Private equity-backed deals accounted for 92% of claims activity in India during 2025.
Financial statement-related issues emerged as the largest source of claims across Asia-Pacific, accounting for 41% of warranty and indemnity notifications in 2025. The report noted that the increase in financial statement-related losses marked a break from the previous five years, when tax-related breaches were the most common source of claims.
Within India, tax-related issues remained the most frequent trigger for notifications under W&I policies, accounting for half of all claims, while breaches related to compliance with laws represented about a third of notifications.
The report also pointed to rising tax-related risks across the region. Tax liability insurance claims more than doubled in Asia-Pacific during 2025, resulting in the highest number of such claims since Marsh began tracking the data.
Claims severity is also increasing. Marsh reported that more than $80 million was paid to clients in Asia-Pacific during 2025, including a tax liability claim exceeding $75 million, making it a record year for claims payouts in the region.
The findings suggest that as India's M&A market grows in scale and sophistication, post-deal disputes and insurance claims are becoming a more common feature of transactions, particularly around financial reporting, tax exposures and regulatory compliance.
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