The Future of M&A Insurance
The Origins
Mergers and Acquisitions (M&A) insurance emerged in the late 20th century when deals between buyers and sellers became more complex.
Like all areas of risk, M&A transactions evolved and adapted which gave light to unforeseen liabilities introducing the demand for the development of other insurance products such as Warranties and Indemnities (W&I) insurance, Tax Liability insurance, and Contingent Risk insurance.
The Future
As the insurance industry, and risk landscape of transactions continue to evolve, the introduction of a more stream-lined and digitalised acquisition process is a crucial adaption to the traditional M&A insurance product. This new take means increased efficiency and far fewer complications when obtaining the relevant cover, allowing access for SME’s and smaller businesses, without the previously lengthy and costly process.
UIB Nordic are working alongside a market-leading insurer in the implementation of their online platform that allows businesses to obtain a quote within minutes. This automated process greatly reduces the need for external parties, such as accountants or lawyers, thereby speeding up the time needed to get insurance in place and finalize the transaction.
Benefits
All the benefits that traditional M&A insurance has offered will continue to be available to purchasers of this new, more standardised product. The parties to the transaction will be enabled a clean exit, without the need for any escrow account, as well as being able to offer higher guarantee amounts than otherwise might have been possible. The amount of time and effort required by an organisation to access this market is now greatly reduced, which allows for a whole new segment of businesses to get the cover they want, and at a lower cost.
How UIB Can Assist
UIB Nordic has a team of insurance experts who have many years of experience within the market allowing them to offer local expertise to clients, as well as access to a global network of offices through the UIB Group which offers worldwide capabilities.
Contact the team to discover more about this new feature in the market and how the UIB Nordic team can assist you with your M&A transactions.
Or click the link below to explore UIB Nordic’s broad range of insurance capabilities.
