Aon Highlights Maturing Transaction Risk Market in Asia Pacific Region as Claims Trends Evolve

The report finds 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. Growing underwriting capacity and wider adoption in markets such as India, Singapore and Korea have supported their integration into transaction structuring and risk management.

"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," said Martijn de Lange, managing director of Transaction Solutions in APAC for Aon. "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 US$1 billion on transaction solutions claims in 2025 with average payouts exceeding US$10 million, and median payments reaching more than US$8.2 million - both record highs. In APAC, Aon secured more than US$26 million 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 US$10 million.

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.

"As claims experience deepens across Asia Pacific, clients are becoming more confident in pursuing recovery and leveraging these solutions as part of their deal strategy," said Anita Vivekananda, managing director of Transaction Solutions in APAC for Aon. "At the same time, the growing prevalence of long-tail tax and regulatory exposures is contributing to a more complex risk landscape, making transaction insurance an increasingly important consideration for organizations pursuing growth and investment opportunities."

About the Report

The 2026 Global Transaction Solutions Claims Study offers insights to help Asian buyers, sellers and advisers better understand emerging claims patterns and the role insurance can play in supporting transaction outcomes over time. The 2026 study reflects continued claims engagement across transaction solutions, with Aon having supported clients on more than 2,000 claims and secured over US$3 billion in recoveries worldwide.

For further details, see the full report 2026 Global Transaction Solutions Claims Study.


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About Aon

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The information contained in this document is solely for information purposes, for general guidance only and is not intended to address the circumstances of any particular individual or entity. Although Aon endeavours to provide accurate and timely information and uses sources that it considers reliable, the firm does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of any content of this document and can accept no liability for any loss incurred in any way by any person who may rely on it. There can be no guarantee that the information contained in this document will remain accurate as on the date it is received or that it will continue to be accurate in the future. No individual or entity should make decisions or act based solely on the information contained herein without appropriate professional advice and targeted research.