Transactional Risk Insurance: Effective Protection Against Difficult-to-Diligence Risks

Short summary

Aon reports that North American deal values rose 73% between 2024 and 2025, driving increased demand for transactional risk insurance. In 2025, clients recovered over $1 billion across transaction solutions claims, with median reps and warranties payments hitting a record $8.2 million. Financial statements claims account for 38% of paid losses, with improper revenue recognition the single greatest driver, highlighting the difficulty of detecting risks during diligence.

• •Aon clients recovered over $1B in transactional risk insurance claims in 2025
• •Median reps and warranties payment reached record $8.2M; average ~$10.4M
• •Financial statements claims are largest category at 38% of paid losses since 2019

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