WillisTowersWatson 2022 M&A Year in Review 

wtwThe transactional insurance landscape evolves rapidly. Our team of expert brokers leverages their deep knowledge of the market to secure optimal outcomes for our clients as part of our unwavering commitment to client advocacy. Working collaboratively, we are committed to the principle that our clients' success is our own.


After reaching record-breaking highs in 2021, M&A deal momentum slowed significantly in 2022 in the face of continuing global economic uncertainty. In some respects, lower deal volume was expected; many experts viewed 2021 an outlier year and predicted a natural market correction. Broader macro-economic volatility and uncertainty in the debt markets, however, led to a particularly slow fourth quarter. Per Bloomberg Law, 2022 had the lowest fourth-quarter M&A deal volume in the past six years, and it was also the first fourth quarter since 2018 in which there was not an increase in deal volume from the third quarter.

The representation and warranty insurance (RWI) industry, which was naturally buoyed by 2021’s extraordinary deal activity, similarly felt the reverberations of tempered deal activity in 2022. Several new insurers entered the market and other insurers hired additional underwriters in anticipation of continued, strong deal flow. However, with only moderate deal activity, insurers encountered heavy competition for each risk, which resulted in a buyer-friendly term environment in late 2022 (and continuing into 2023). Although RWI activity moderated in lockstep with the broader M&A market, other lines of transactional insurance — contingent liability and tax — saw growth accelerate during 2022. Contingent liability remains the fastest-growing area of transactional insurance, and several insurers and brokers have added specialized roles to manage these placements. Similarly, the pipeline of tax insurance opportunities has remained strong even in times of low M&A activity, as more financial and corporate clients become aware of the utility and scope of tax insurance solutions both within the context of an M&A deal and with respect to ordinary-course business planning.

This year in review addresses 2022 market trends in transactional insurance, including RWI, tax and contingent.

Questions, contact: 

Mark Rusas Industry Practice Leader, Transaction Risk & Advisory Solutions
+1 212 915 8328