Aon Strengthens Insights on Evolving Transaction Risk Market in Asia Pacific as Claims Activity Increases

SINGAPORE – 14 July 2026 – Aon plc (NYSE: AON), a prominent global professional services firm, has unveiled findings from its 2026 Global Transaction Solutions Claims Study, focusing on the evolving landscape of transaction risk in the Asia Pacific (APAC) region. The report underscores significant trends in claims and the growing importance of transaction risk products such as warranty and indemnity (W&I) insurance and standalone tax liability insurance in regional deal-making.

The study reveals that these transaction risk products are increasingly integral to structuring deals in markets like India, Singapore, and South Korea. Enhanced underwriting capacity and a broader acceptance of these products are facilitating their incorporation into transaction risk management strategies.

Martijn de Lange, managing director of Transaction Solutions in APAC for Aon, noted that the outcomes of claims in the transaction risk market are influenced by the quality of due diligence, financial analysis, and post-completion integration, in addition to policy coverage. He highlighted a notable increase in claims frequency and severity, particularly in large and cross-border transactions, emphasizing the protective role of W&I and tax insurance in safeguarding deal value. De Lange also pointed out that the APAC region is becoming increasingly influential in shaping global transaction risk trends, with local claims experiences reinforcing the necessity of structured insurance solutions to manage evolving risks.

Businesses are recognizing the value of these products when claims arise, which bolsters their confidence in protecting deal value. Current claims trends in APAC align closely with global patterns, with common sources of loss including disclosure-related issues, inaccuracies in financial statements, compliance breaches, and tax-related exposures.

Claims Activity Increases as Market Matures

Over the past decade, the APAC region has experienced a steady rise in claims activity, providing deeper insights into frequency, severity, and loss drivers. Aon’s internal claims data indicates that clients in North America recovered over US$1 billion on transaction solutions claims in 2025, with average payouts exceeding US$10 million and median payments surpassing US$8.2 million—both record highs. In APAC, Aon has secured over US$26 million in claims over the last three years, which includes several high-severity claims.

Initially, claims activity was concentrated in Australia and New Zealand, where W&I insurance was first adopted. However, a second wave of growth is now emerging across India, South Korea, and Southeast Asia. Standalone tax liability insurance has become a standard component of transactions in India and is gaining traction in South Korea, Japan, China, and Australia. These policies are increasingly utilized to manage identified tax exposures, such as capital gains tax exemptions, withholding taxes, and net operating losses. Claims activity is anticipated to rise further as current trends continue and policy years mature.

High-Value Claims and Long-Tail Risks Shape the Region’s Profile

The study highlights that claims in APAC are increasingly characterized by high-severity losses, particularly in large-cap and cross-border deals, with several claims exceeding US$10 million. Tax and regulatory exposures are driving some of the region’s largest and most complex claims, often surfacing several years after deal completion and contributing to a pronounced long-tail risk profile.

Operational and disclosure-related issues typically arise within the first year post-completion, while tax-related claims may be reported more than five years after policy inception, reflecting audit cycles and enforcement timelines in the region.

Disclosure, Financial and Compliance Risks Drive Claims Across Sectors

In APAC, disclosure issues, inaccuracies in financial statements, compliance with laws, and tax-related exposures remain significant drivers of claims, consistent with global trends. Common claim scenarios include:

• Undisclosed or misrepresented material contracts and liabilities
• Discrepancies between reported financials and actual performance
• Non-compliance with regulatory and licensing requirements, particularly in highly regulated sectors
• Tax disputes related to transfer pricing, customs duties, and withholding obligations

Sector-Specific Risks Continue to Evolve

The study identifies distinct loss patterns across key industries:

• Real estate and infrastructure: Claims related to asset condition, environmental liabilities, and lease obligations
• Consumer and retail: Regulatory scrutiny, customer liabilities, and disclosure gaps
• Technology and payments: Risks associated with licensing, certification, and contract concentration
• Cross-border structures: Tax and regulatory exposures in multinational and complex financing arrangements

The findings indicate that W&I and tax insurance are increasingly woven into transaction planning and risk management strategies, especially for large and cross-border transactions where traditional seller recourse may be limited.

Anita Vivekananda, managing director of Transaction Solutions in APAC for Aon, stated that as claims experience deepens across the region, clients are becoming more confident in pursuing recovery and leveraging these solutions as part of their deal strategies. She emphasized that the growing prevalence of long-tail tax and regulatory exposures is contributing to a more complex risk landscape, making transaction insurance an essential consideration for organizations seeking growth and investment opportunities.

About the Report

The 2026 Global Transaction Solutions Claims Study provides insights aimed at helping Asian buyers, sellers, and advisers understand emerging claims patterns and the role of insurance in supporting transaction outcomes over time. The study reflects ongoing claims engagement across transaction solutions, with Aon having assisted clients on over 2,000 claims and secured more than US$3 billion in recoveries globally.

For further details, see the full report here.

Source: www.zawya.com

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Published on 2026-07-14 06:15:00 • By the Editorial Desk