Hunton Insurance Recovery Blog

Aon released a recent report titled “Rep & Warranties Payouts Set Records In 2024, Aon Says.” That report described over $300 million in representation and warranties insurance claim payouts for North American clients, a record annual total. Aon also reported that the median payment size was $5.5 million, indicating significant recovery on noticed claims. Hunton partner Syed Ahmad was recently quoted in a Law360 article, commenting that the market for M&A insurance is largely driven by the underlying deal activity. He added that “[r]ecoveries at this rate can also influence perceptions and increase the demand for these products by repeat players in the marketplace.”

The report highlights that efficiency in the claim process remains a concern among insureds despite record payouts. As the report suggests, claim process efficiency can depend on the time spent gathering and providing information responsive to the insurer’s information requests and quantifying the covered loss. Experienced coverage counsel can help expedite the claim process by anticipating insurer requests and engaging qualified third-party experts to prepare loss calculations early.