DUAL Group Launches Global Practice for Transactional Risk Insurance

As the global mergers and acquisitions (M&A) landscape continues to evolve, DUAL Group has strategically unified its transactional risk operations into a single, global practice. This timely consolidation comes on the heels of a notable uptick in transactional risk rates and a surge in M&A deal values, which reached nearly $5 trillion globally. The insurance industry is witnessing a pivotal moment, characterized by rising claims and a greater need for sophisticated underwriting solutions that can address the complexities of modern deals.

In 2025, North American rates for representations and warranties (R&W) insurance rose by an impressive 16% year-on-year, marking the end of a three-year decline. This increase is largely attributed to accumulated claims experience rather than a shortage of capacity. Additionally, leading insurance broker Marsh reported placing a record $91.6 billion in transactional risk limits, a 34% increase from the previous year. Such figures indicate not only a recovering market but also a growing appetite for transactional risk coverage as businesses navigate an increasingly competitive and complex M&A environment.

Understanding the New Global Practice

The newly unified global practice at DUAL Group brings together over 80 underwriters operating across 11 jurisdictions, including the Americas, the UK, Europe, and the Asia-Pacific region (ANZ). This consolidation allows DUAL to provide a cohesive service offering that spans various product lines, including warranty and indemnity, tax, contingent risk, title, and climate risk insurance. By leveraging a single operating model, DUAL aims to enhance its competitive advantage over firms that operate through fragmented networks.

The Role of Liberty Specialty Markets

DUAL's initiative is supported long-term by Liberty Specialty Markets, which acts as the lead capacity provider through a global binder. This partnership ensures that DUAL has the necessary backing to meet the increasing demand for insurance products that address the challenges posed by cross-border transactions. Richard Clapham, DUAL Group's chief executive, emphasized the importance of specialist underwriting in a market characterized by larger and more intricate deals, stating, "The need for specialist underwriting and consistent, high-quality execution has never been greater."

The Impact of Market Dynamics on Transactional Risk

The transactional risk insurance market has been significantly impacted by various dynamics, particularly the rise in deal activity across different regions. In the Asia-Pacific, the demand for warranty and indemnity (W&I) and contingent risk cover has expanded beyond its traditional base in Australia and New Zealand, now extending into markets like Japan, South Korea, and Singapore. Meanwhile, in North America, R&W insurance has become a standard fixture in middle-market and large-cap transactions.

The **16% rate increase** in the R&W market reflects a maturation of this segment, demonstrating a growing acceptance of transactional risk insurance as a necessary component of the deal-making process. In Canada, the cross-border deal activity with the US has further sustained demand for R&W and tax liability coverage, making it essential for insurers to track not just domestic market conditions but also the interconnectedness of North American markets.

Competitive Landscape and Industry Trends

The landscape for transactional risk insurance has become increasingly competitive, particularly in the UK and Europe, where the number of specialist insurers has roughly doubled over the past five years. According to Gallagher, similar trends are observable in the ANZ and North American markets, as managing general agents (MGAs) and Lloyd's coverholders expand their transactional risk capabilities. This competitive deepening underscores the need for a unified operating model that offers clients a single access point to combined capacity across diverse product lines and regions.

• Over 80 underwriters working across 11 jurisdictions
• Target of £500 million in gross written premiums by 2030
• Partnership with Liberty Specialty Markets for long-term capacity
• Increasing demand for multi-product solutions on complex transactions

Benefits of a Unified Operating Model

The rationale behind DUAL's unification is to meet the growing demand for multi-product solutions in complex transactions. Paul Smith, DUAL's group head of transactional risk, noted that clients are increasingly looking for integrated insurance solutions backed by robust claims handling processes. The unified model aims to provide this by sharing expertise and data while retaining local market knowledge, which is critical for informed underwriting decisions.

Local Expertise Meets Global Scale

The combination of global scale and local expertise is essential, especially in jurisdictions with unique regulatory environments and market dynamics. For example, the underwriting approach in Australia may differ significantly from that in continental Europe due to varying legal frameworks and business practices. DUAL's strategy ensures that while the benefits of scale are utilized, the localized knowledge that is crucial for effective underwriting remains intact.

The Future of Transactional Risk Insurance

As the transactional risk insurance market matures, the focus on certainty of coverage has become paramount. Stephen Tompson, head of supercoverholders at Liberty Specialty Markets, highlighted that certainty in risk coverage is crucial for a streamlined and efficient deal process in today's volatile business environment. This sentiment is echoed throughout the industry as businesses seek to mitigate risks associated with complex transactions.

Looking ahead, DUAL Group has set an ambitious target of generating £500 million in gross written premiums from its unified transactional risk practice by 2030. This goal reflects not only the firm's confidence in the growth of the transactional risk market but also its commitment to providing innovative solutions to meet the evolving needs of clients engaged in M&A activities across the globe.

Key Takeaways

• DUAL Group has consolidated its transactional risk operations into a global practice.
• The North American R&W insurance market saw a 16% rate increase in 2025.
• Over 80 underwriters operate under the unified model across 11 jurisdictions.
• The aim is to generate £500 million in gross written premiums by 2030.
• Local expertise combined with global scalability enhances underwriting effectiveness.

Frequently Asked Questions

What is transactional risk insurance?

Transactional risk insurance is designed to protect parties involved in mergers and acquisitions from various risks associated with those transactions. This includes coverage for breaches of representations and warranties, tax liabilities, and other contingent risks that may arise after a deal is closed. The insurance helps to facilitate smoother transactions by providing financial protection against unforeseen issues.

How has the demand for transactional risk insurance changed?

The demand for transactional risk insurance has significantly increased, particularly as deal sizes and complexities have grown. In recent years, the market has seen a surge in activity, with companies seeking coverage to mitigate risks in cross-border transactions and larger deals. This shift has led to rising rates and an increase in the number of specialists entering the market.

What are the benefits of a unified transactional risk practice?

A unified transactional risk practice allows for streamlined access to a comprehensive range of insurance products across different regions and jurisdictions. It enhances the efficiency of the underwriting process, enables better risk assessment, and provides clients with a single point of contact for their insurance needs. This model is particularly advantageous for clients involved in complex, multi-product transactions.

What role do underwriters play in transactional risk insurance?

Underwriters are responsible for assessing the risks associated with insurance applications and determining the terms and pricing of coverage. In the context of transactional risk insurance, underwriters evaluate the details of the transaction, including the parties involved, the nature of the deal, and any potential liabilities. Their expertise is crucial in providing tailored solutions that meet the specific needs of clients engaged in M&A activities.