M&A Insurance Claims in Pacific Region Reveal High Frequency and Evolving Risk Landscape, Aon Study Finds

 

• Disclosure, tax and compliance breaches dominate W&I insurance claims in Australia and New Zealand.
• Eighty percent of claims in the Pacific region stem from deals valued under AU$500 million.
• Aon’s Pacific region clients recovered approximately AU$30m in paid M&A insurance claims in the last year, with a successful claims payout on almost 60 percent of the claim notices submitted.

SYDNEY, 17 July, 2025 - Aon plc (NYSE: AON), a leading global professional services firm, today released regional insights from its 2025 Transaction Solutions Global Claims Study, highlighting key trends in M&A insurance claims across the Pacific region. The study, based on Aon’s proprietary claims data and insurer surveys, reveals that Australia and New Zealand (ANZ) continue to experience a high frequency of warranty and indemnity (W&I) insurance claims, particularly in smaller transactions.

The Pacific region saw claims filed on approximately 20 percent of W&I policies placed, with 80 percent of those claims arising from deals with an enterprise value of less than AU$500 million. This underscores the heightened risk profile of small-to-mid-market transactions and the critical role W&I insurance plays in protecting deal value. The introduction of synthetic warranties and lower minimum premiums is helping insurers tailor offerings to the small-to-medium enterprise sector.

Top Causes of W&I Claims in the Pacific

 

The most common triggers for claims in ANZ include:

• Compliance with laws
• Tax matters
• Financial statements
• Litigation
• Employment issues

The report revealed that employment-related claims are particularly prevalent due to regulatory complexity and evolving legal standards. Inadequate disclosure during due diligence remains a recurring issue, often contributing to claims. This includes both general warranties and specific disclosures.

Timing and Trends

 

Nearly 25 percent of claims in the Pacific region are reported within six months of deal closing, and almost 50 percent are submitted within 12 months. Close to 100 percent of claims are filed within three years, aligning with the typical duration of W&I policy periods.

“The Pacific region continues to demonstrate the value of W&I insurance, particularly in smaller transactions where deal risks are often more concentrated,” said Ami Kalmath, claims manager, financial specialties and transaction solutions, Pacific at Aon. “Our data shows that when clients engage early and collaborate closely with their advisors and insurers, claims are resolved more efficiently and with better outcomes.”

“We’re seeing a more sophisticated approach to risk transfer in the Australian M&A market,” added Kris Karlsson, head of M&A and transaction solutions, Pacific at Aon. “Buyers and sellers alike are leveraging W&I insurance not just as a deal enabler, but as a strategic tool to manage post-close risk. The data reinforces that this product is delivering real value when it matters most.”

To explore the full report and regional insights, visit Aon's 2025 Transaction Solutions Global Claims Study.

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.

Follow Aon on LinkedIn, X, Facebook and Instagram. Stay up-to-date by visiting the Aon's newsroom and sign up for news alerts here.