The adoption of deal insurance continues to accelerate as acquirers (and vendors) race to offset risk in an increasingly uncertain dealmaking environment, according to a survey commissioned by the global law firm Norton Rose Fulbright.
The firm’s report, titled “Global M&A trends and risks 2025”, based on the survey findings, says that taking a global baseline, nearly two-thirds of respondents (65%) expect the use of R&W and W&I insurance to increase in 2025 compared to 2024 (61%), including 37% who expect that the increase will be significant (up from 26%).
This trend, observable across all markets around the world, is expected to be most pronounced in the Middle East, with 47% of respondents forecasting a significant increase in the use of R&W/W&I insurance in the region.
M&A volumes in the Middle East, however, are expected to stall or decline. For instance, just 11% of respondents expect M&A volumes in the Middle East to increase year-on-year, and over half (55%) believe deal activity will decrease in the region. However, Middle Eastern investors are continuing to expand their global footprint, as demonstrated by the commitments made by regional investors to international deals.
Some survey findings
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Trend (2025/2024)
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Use of R&W / W&I insurance
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M&A activity volume
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Decrease significantly
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-
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18%
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|
Decrease somewhat
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3%
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37%
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|
Stay broadly the same
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20%
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34%
|
|
Increase somewhat
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30%
|
9%
|
|
Increase significantly
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47%
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2%
|
|
Source: “Global M&A trends and risks 2025” report by Norton Rose Fulbright
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In 1Q2025, Mergermarket, a financial news and intelligence service, on behalf of Norton Rose Fulbright, surveyed 200 of the most senior leading executives on the subject of global M&A trends and risks, including: 100 C-suite and other top-level executives (for example, CEO, COO, managing partner, chief investment officer, head of M&A, director of M&A) from multinational corporates; 50 from large private equity firms; and 50 from major investment banks.