Aon plc (NYSE: AON), a leading global professional services firm, today released its 2026 Global M&A and Transaction Solutions Claims Study, which highlights the continued evolution of the global M&A insurance landscape across Representations and Warranties (R&W), Warranty and Indemnity (W&I), Tax and Contingent Risk insurance.
Aon’s study is based on proprietary data from nearly 2,000 claims and more than $3B in recoveries secured globally across transaction solutions products since inception, with record recoveries in North America and increasing claims activity across EMEA and APAC.
“The global claims environment is evolving rapidly, as rising claim frequency, increasing severity and shifting notification patterns impact the M&A insurance landscape,” said Stephen Davidson, Global Head of Transaction Solutions Claims for Aon. “At the same time, the market continues to demonstrate the value of high-quality underwriting data, sophisticated analytics and close partnership between insurers, brokers and clients to proactively manage risk before a deal is signed and achieve fair and efficient outcomes when claims do arise.”
Significant year-over-year increases in R&W and W&I insurance payments
The report reveals that in 2025, North American clients secured more than $1B across transaction solutions policies, including more than $440M from R&W insurance alone.
Larger claims are becoming more common in North America, with a growing proportion of losses exceeding 60 percent of policy limits and an increasing number reaching full limits. Approximately four percent of claims allege losses greater than $100M, while claims based on valuation multiples accounted for 68 percent of total paid losses in 2025.
Median R&W claim payments exceeded $8.2M in 2025, up from $5.5M in 2024, reflecting continued complexity in post-close disputes and increasing sophistication in the use of transaction risk insurance solutions.
In EMEA, claims activity continues to accelerate; notifications increased from 70 in 2024 to 119 in 2025. Claim frequency is also increasing, with insurer data showing a notification submitted on 21 percent of the policies placed across the market in 2023. Earlier notifications emerged as a trend in 2025, with a notification submitted on 9.5 percent of Aon-placed policies by December 31, 2025, reflecting maturing underwriting years and claims being filed across a broader portion of the policy lifecycle.
In APAC, there is a growing body of W&I and tax notifications across Australia, New Zealand and the broader markets in Asia, although the claims rate remains varied as the product matures in some regions.
Core drivers of claims
In terms of North American breach trends, compliance with laws remains the most frequent breach type, accounting for more than 20 percent of notifications. Material contracts, financial statements and tax breaches each represent more than 10 percent of notifications. Financial statement breaches continue to account for the highest proportion of paid losses, representing 38 percent of total losses, while intellectual property-related claims grew from approximately five percent of all losses between 2019-2024 to roughly 10 percent of total losses in 2025.
The main notification driver across EMEA is tax, which accounts for more than 20 percent of notifications; given the routine nature of audit activity in the region, this is expected and does not drive paid losses. Financial statement breaches account for a similar percentage of notifications but are the main driver of loss. Across APAC, disclosure continues to be the most common breach type.
Other key findings from the report include:
- In North America, fifty-one percent of claims are now filed more than 12 months after closing, continuing the trend toward later reporting within the policy period.
- Eight-figure claims represented approximately 41 percent of North American payments in 2025, compared to 27 percent in 2024.
- Claims activity continues to increase as the use of R&W and W&I grows and buyers become more familiar with how the policy can protect against deal risks undiscovered in the due diligence process.
- Tax insurance remains a low-frequency claims solution, though more than $350M has been recovered for clients in North America through negotiated resolutions with tax authorities across different types of claims.
In its seventh year, Aon’s annual Global M&A and Transaction Solutions Claims Study is the premiere indicator of how the firm’s historical claims data can assist clients, advisors and insurers on their next deal. Read the full study here.
ENDS
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.
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