Representations-and-Warranties-Market-Trends-in-Q2-2024

Representations and Warranties Market Trends in Q2 2024

06/17/2024 Written by: AP Mergers & Acquisitions Insurance

The number of submissions in the Representations and Warranties marketplace continued to rise in Q2 2024, above the previous quarter. This is consistent with the increase in M&A activity we have seen in the U.S., as inflation is expected to remain steady or drop, and investors have adjusted to the geopolitical climate.

Despite the increased number of submissions in the marketplace, pricing for Representations and Warranties policies remains at an all-time low, with rates hovering around 2.6%. Additionally, retentions on policies have significantly decreased as insurers try to get creative on how to win deals without giving up too much premium.

Looking ahead, we anticipate the low rates will continue in the short-to-medium term because there is still excess underwriting capacity in the marketplace. However, we expect that rates will begin to rise in 2025. Given the continued rate of claims on Representations and Warranties policies and the dollar value of claims payouts, premium rates will need to rise in the future.

Stay ahead of the Representations and Warranties market trends. Subscribe today:

Subscribe today!
Optimistic-M&A-Outlook-for-Q3-2024-Amid-Low-RWI-Rates 
Optimistic M&A Outlook for Q3 2024 Amid Low RWI Rates 
Mergers & Acquisitions Insurance07/19/2024

As we enter Q3 2024, the M&A outlook remains optimistic. Deal flow has been steady and is picking up compared to the previous year. According to a recent report by Euclid Transactional (one of our...

Representations-and-Warranties-Insurance-Policies-on-the-Rise-as-MA-Activity-Gains-Momentum-in-2024
Representations and Warranties Insurance Policies on the Rise as M&A Activity Gains Momentum in 2024
Mergers & Acquisitions Insurance05/22/2024

As M&A activity picks up in 2024, the number of Representations and Warranties Insurance (“RWI”) policies placed in the market has increased in tandem. The uptick in activity is driven by the...

Case Study: GLP-1 Cost Effectiveness and Coverage for Employer-Sponsored Health Plans
Mergers & Acquisitions Insurance04/12/2024

GLP-1 receptor agonists, or GLP-1 RAs, are changing the game for people living with Type 2 diabetes and obesity. These powerful medications, such as Ozempic, Trulicity, and Wegovy, not only help...