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Prediction: Germany: Expect an increase in transactional risk claims

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Prediction

The transactional risk insurance market has been very competitive over the last few years due to relatively low deal flow and new insurers and MGAs in the German market. This has led to falling premiums, lower retentions and broader coverage. As a consequence, an increase in claims is expected. In turn, this should lead to rising premiums, as it is likely that the broader coverage will remain. Irrespective of this, the steadily growing range of warranty and indemnity/transactional offerings in Germany shows that the market remains attractive for insurers. This will be all the more true if, as expected, the M&A market in Germany becomes more dynamic again.