A new study by Aon has revealed that transaction risk products, including warranty and indemnity (W&I) insurance and standalone tax liability insurance, continue to be a key consideration in Asia dealmaking.
Aon’s 2026 Global Transaction Solutions Claims Study highlighted the continued evolution of the region's transaction risk market and emerging claims trends. The report found that growing underwriting capacity and wider adoption in markets such as India, Singapore and Korea have supported their integration into transaction structuring and risk management.
Aon Managing Director of Transaction Solutions in APAC Martijn de Lange said that as the transaction risk market across the Asia Pacific region continues to evolve, claims outcomes are shaped not only by policy coverage but also by the quality of diligence, financial analysis and post-completion integration.
"We are seeing greater claims frequency and higher-severity outcomes, particularly in large and cross-border transactions, reinforcing the value of Warranty & Indemnity and tax insurance in protecting deal value. The region is also playing an increasingly important role in shaping global transaction risk trends, with claims experience reinforcing the value of structured insurance solutions in managing evolving deal risks."
Businesses are seeing these products deliver value when claims arise, reinforcing confidence in their ability to protect deal value. APAC claims trends are now broadly aligned with global experience, with disclosure-related issues, financial statement inaccuracies, compliance breaches and tax-related exposures among the most common sources of loss.
Claims activity increases as market matures
As adoption has increased over the past decade, APAC has seen a steady rise in claims activity, providing deeper insight into claims frequency, severity and drivers of loss. In North America, according to Aon's internal claims data as of July 2026, clients recovered over $1bn on transaction solutions claims in 2025 with average payouts exceeding $10m, and median payments reaching more than $8.2m - both record highs. In APAC, Aon secured more than $26m in claims over the past three years, including several high-severity claims.
While early claims activity was concentrated in Australia and New Zealand, where W&I insurance product was first adopted, a second wave of growth is emerging across India, South Korea and Southeast Asia.
Standalone tax liability insurance has become a regular feature of transactions in India and is gaining traction across South Korea, Japan, China and Australia. These policies are increasingly used to manage identified tax exposures, including capital gains tax exemptions, withholding taxes and net operating losses. Claims activity is expected to rise further based on current trends and as policy years mature.
High-value claims and long-tail risks shape the region's profile
The study highlights that APAC claims are increasingly characterised by high-severity losses, particularly on large-cap and cross-border deals, with several exceeding $10m. At the same time, tax and regulatory exposures continue to drive some of the region's largest and most complex claims, often emerging several years after deal completion and contributing to a pronounced long-tail risk profile.
While operational and disclosure-related issues typically arise within the first year post-completion, tax-related claims may be notified more than five years after policy inception, reflecting audit cycles and enforcement timelines across the region.
Disclosure, financial and compliance risks drive claims across sectors
Across APAC, disclosure issues, financial statement inaccuracies, compliance with laws and tax-related exposures continue to drive claims, consistent with broader global trends. Typical claim scenarios include:
Undisclosed or misrepresented material contracts and liabilities
Gaps between reported financials and underlying performance
Regulatory and licensing non-compliance, particularly in highly regulated sectors
Tax disputes involving transfer pricing, customs duties and withholding obligations
Sector-Specific risks continue to evolve
The study identifies distinct patterns of loss across key industries:
Real estate and infrastructure: claims linked to asset condition, environmental liabilities and lease obligations
Consumer and retail: regulatory scrutiny, customer liabilities and disclosure gaps
Technology and payments: licensing, certification and contract concentration risks
Cross-border structures: tax and regulatory exposures on multinational and complex financing arrangements
The findings indicate that W&I and tax insurance are increasingly integrated into transaction planning strategies and risk management strategies, particularly for large and cross-border transactions where traditional seller recourse may be limited.