There has been a strong uptick in tax risk coverage recently and we expect tax to be the most frequently notified claim type in the year ahead. Coverage for tax risks has expanded under warranty and indemnity (W&I) policies, and there is now a well-established market for standalone specific tax risk policies. These policies not only cover known tax risks excluded from W&I insurance (e.g. due to disclosure or high quantum) but are increasingly used to cover business restructuring risks, real estate transaction taxes, financing transactions and international tax matters. The higher volume of notifications will not necessarily translate into higher claim payments, as many tax claims are notified protectively at the time the tax authority opens an enquiry or audit, and there is often a long lead time before an insurable liability crystallises. Demand for tax cover is expected to continue to rise as the market increasingly views it as a routine tool for managing complex and high quantum tax risks.