Snapshot
- M&A activity across the Pacific region gained momentum in 2024, with heightened interest in infrastructure, technology, and natural resources.
- Despite slight upward pressure on premiums driven by larger transactions and broader coverage requests, W&I insurance remained a key facilitator of deals.
- Insurers adapted underwriting amid rising claim severity in areas like employment, cyber and compliance.
- As deal complexity grew comprehensive due diligence helped both buyers and sellers protect their balance sheets, manage unforeseen liabilities, and drive successful transaction outcomes.
Over 2024, the M&A market in Australia and New Zealand demonstrated gradual recovery despite persistent inflationary pressures. Financial sponsors were cautious, placing a stronger emphasis on risk and insurance considerations, and competitive tension continued to be a key driver of deal structure, with sell-buy flips continuing to evolve in the region.
W&I insurance remained a key tool for de-risking transactions, with growth in larger deals and increased foreign involvement driving a slight increase in premiums. Despite the uptick, insurers’ appetite in the Pacific region continued to expand and more comprehensive coverage metrics, lower retentions, and extended policy periods became increasingly common. Claims activity rose in parallel, reflecting both regional legal and regulatory nuances and the heightened scope of W&I policies.
Beyond W&I, various specialty insurance lines gained prominence, including litigation and contingent risk insurance offering protection against legal issues, and tax liability insurance addressing the growing complexities of multi-jurisdictional operations and restructurings.
In 2025, market sentiment across the Pacific appears increasingly positive. Despite ongoing caution around interest rate volatility and shifting monetary policies, corporate investors appear to be showing renewed confidence in cross-border transactions, particularly in sectors linked to digital innovation and sustainability. Capital flows remain robust, although dealmakers are focusing more heavily on due diligence and risk mitigation strategies before committing to significant outlays.
Learn more about key market trends and conditions in our M&A and Transaction Solutions Insurance Market Insights 2024-2025. Report highlights include:
- Analysis of latest W&I trends
- An overview of M&A claims
- Observations on underwriting focus areas
- Insights on dealing with known issues
- Risk and insurance due diligence considerations
- Conditions update across key lines including automobile, casualty, cyber, Directors and Officers, and property
- 2025 outlook on anticipated insurance market movements
