THE CURRENT STATE OF THE MARKET
Although non-private equity M&A deal activity stalled somewhat in 2025 due to trade policy uncertainty and global market volatility it has picked up significantly thus far in 2026, particularly in the strategic sector. We are seeing lots of acquisitions in the Technology, Media and Healthcare/Life Sciences sectors in particular.
Despite this uptick in deal volume and related expectation of a hardening market for RWI there is currently ample demand by insurers to write the business. Most M&A transactions are easily and competitively complimented with RWI with little impediments. Although there are some insurers that have internally set rate minimums and non-negotiable coverage restrictions, there still seems to be enough existing and new capacity to get deals done with multiple viable indications. Even small transactions (as low as $15M EV) can be competitively priced.
This market stability is despite anecdotal and published evidence that RWI claims are actually increasing. We estimate that approximately 20% of placements generate at least one claim. Most claims continue to relate to financial statement representations, compliance with law and material contracts.
LOOKING AHEAD
While it’s crucial to understand the current market conditions, it’s equally important to stay prepared for future fluctuations. The insurance market is cyclical, and conditions can change based on a variety of factors, including:
- economic indicators
- catastrophic events
- changes in legislation or regulation
- underwriter perception of systematic risk
KAPNICK: YOUR PARTNER IN SUCCESS
Now more than ever is an opportune time to consider the utilization of insurance deal facilitation products and solutions to make your transactions easier and faster.
As we move forward, our team at Kapnick will continue to monitor the market and provide our clients with the most accurate, up-to-date information in order to help them consider the potential costs and opportunities associated with mergers, acquisitions and divestitures.
We are committed to helping you quickly navigate through this market, offer realistic solutions, and execute with superior results.
Our goal is to help you navigate the market efficiently, offer practical solutions, and deliver superior results. Trust Kapnick to be your partner in success.
Reach out at or 888.263.4656 to learn more!
-Doug Miller
