DUAL Group is making a strategic move to consolidate its transactional risk operations into a single global practice. This decision comes at a pivotal moment as transaction-specific risks are surging in the marketplace. North American rates for representations and warranties (R&W) coverage saw a 16% increase year-on-year in 2025, reversing a three-year decline. Simultaneously, claims frequency and severity are on the rise, while Marsh reported placing an unprecedented $91.6 billion in transactional risk limits—a 34% increase from 2024. This shift unfolds as global mergers and acquisitions approach nearly $5 trillion, a figure that underscores a marketplace marked by increasing claims experience and evolving pricing strategies.
The Rationale Behind Consolidation
By bringing together over 80 underwriters across 11 jurisdictions—including the Americas, the UK, Europe, and ANZ—DUAL aims to enhance operational efficiency and competitive positioning. The rationale here isn't just about improving workflow; it's about leveraging a tumultuous market. With Liberty Specialty Markets as the lead capacity provider through a global binder, DUAL’s unified practice will encompass warranty and indemnity, representations and warranties, tax, contingent risk, title, and climate risk lines. This is more significant than it looks. In a fragmented market, a combined practice can offer clients a broader spectrum of options while providing the potential for cost savings and improved service.
This integration is solidified through the use of shared technology, analytics, and governance structures, in addition to dedicated regional claims teams that possess local underwriting authority. DUAL has ambitiously targeted £500 million in gross written premium from this consolidated venture by 2030. Targeting ambitious premium growth reflects not only the company’s goals but also the overall confidence in the trajectory of transactional risk insurance.
Market Conditions and Their Impact
Richard Clapham, CEO of DUAL Group, noted that evolving market conditions have elevated the expectations for specialized underwriting. "As deals grow larger, more cross-border, and increasingly complex, the need for targeted underwriting and consistent execution is at an all-time high," Clapham stated, pointing to a sector that increasingly demands high-quality service. The complexity is palpable—more cross-border transactions mean more variables, and more variables mean higher risk assessments and pricing intricacies. Companies must be ready to respond quickly to these changes; the stakes are climbing.
Across its core markets, global transactional risk insurance is experiencing rapid expansion. In the Asia-Pacific region, increased deal activity has broadened the demand for warranty and indemnity and contingent risk insurance beyond its traditional stronghold in Australia and New Zealand, reaching markets like Japan, South Korea, and Singapore. North America has matured into a standard market for R&W coverage—especially amid middle-market and large-cap transactions. The recent 16% rate hike reflects historical claims experiences rather than a shortage of underwriting capacity. Particularly in Canada, sustained cross-border transactions with the U.S. continue to fuel demand for R&W and tax liability covers, mirroring North American conditions rather than solely domestic factors.
The Growth of Specialist Insurers
According to Gallagher, the number of specialist transactional risk insurers in the UK and Europe has almost doubled within five years. This competitive expansion isn't just a fluke; it’s indicative of a sector responding to increasing demand for more nuanced coverage options. This trend is also evident in ANZ and North America as managing general agents (MGAs) and Lloyd's coverholders enhance their transactional risk capabilities. Under these conditions, DUAL’s consolidated operating model stands out, offering clients streamlined access to combined capacity across various product lines and regions—a critical advantage for those navigating complex cross-border transactions.
(and this is the part most people overlook) Just having a wider range of options isn’t enough if the underlying market remains volatile. Clients need assurance that when they engage in complex transactions, the risk coverage they acquire is reliable. DUAL’s model seeks to bridge this gap, aiming to present clients with greater certainty.
Strategies for Addressing Client Needs
Paul Smith, DUAL’s group head of transactional risk, emphasized that this unified framework is crafted to fulfill the rising demand for multifaceted solutions in complicated dealings. "Insurance has always played a vital role in the deal process, but the growing need for intricate, multi-product solutions supported by enhanced claims management is unmistakable," he remarked. His observations echo a broader realization—the industry can no longer treat transactions as one-size-fits-all scenarios. The need for tailored products is not just a trend; it reflects the current demands of an increasingly complex global economy.
He further indicated that the model would optimize scale benefits by integrating shared expertise and data while maintaining a focus on local market knowledge that is essential for competent underwriting across diverse regions. The tension between global strategies and local knowledge is something that firms must manage to remain competitive. This is no small feat, given the speed at which markets are evolving.
Implications for the Future
Stephen Tompson, leading supercoverholders at Liberty Specialty Markets, underscored the focus on ensuring certainty in coverage amidst today’s volatile business environment. "Establishing confidence in risk coverage during deal proceedings has become indispensable for a smooth and efficient process," he concluded. This speaks to a larger theme emerging in the transactional risk market—coverage cannot merely be a checkbox in a deal; it needs to be a core part of the transaction conversation, integral to strategy. What this means for you is that clients will increasingly expect providers to not just meet basic coverage needs, but to understand their businesses and the intricacies that come with international dealings.
As we look ahead, the emphasis on consolidation and specialization in transactional risk insurance is unmistakable. The changing market dynamics, characterized by rising rates and heightened complexity in cross-border transactions, signify a turning point.
