Representations and warranties insurance


M&A DRIVES BOOM FOR


CONCORD Concord Specialty Risk is seeing rising demand for its representations and warranties insurance products and its products and expertise in relation to uncertain tax positions. Dave De Berry, the company’s chief executive  growth to Intelligent Insurer.


insurance products in relation to mergers and acquisitions, and also its tax insurance products. Multiple factors underpin the rapid growth of these products.


C Concord’s representations and warranties insurance products are


designed to insure companies against breaches, unforeseen liabilities and other problems following a merger or acquisition. For this product line, the number of submissions the company saw doubled in 2014 compared   the gross written premiums it wrote more than tripled.


   that one of the biggest driving forces behind this growth was the fact that


28 | INTELLIGENT INSURER | Spring 2015


oncord Specialty Risk, a transactional risk insurance and loss mitigation specialist which is a series of RSG Underwriting Managers, is enjoying exponential growth in demand for its representations and warranties


  roles in large acquisitions, have thrown their weight behind the product.


  acts for many private equity funds on mid-market US deals in particular.


  policy has been a real game-changer for us,” De Berry says.


 is that rates have come down, meaning that buying such a policy can                      have liberalised and generally follow the scope such terms are accorded in the underlying transaction agreement. Third, Concord Specialty Risk has demonstrated a solid track record of paying claims in full and on time.





but there is still room for upward trajectory,” De Berry says. “There are many   are starting to dabble with it more so we feel there is a lot more growth ahead.”


He estimates that some 25 percent of transactions involving mid-market deals and private equity money now have parties buying a form of representations and warranties insurance. He believes that the percentage will continue to grow.


TAX INSURANCE The company is also seeing rapid growth in the uptake of some of its


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