Press release: Liberty GTS claims report 2026: Record M&A claims volumes and increasing severity
Liberty GTS claims report 2026: Record M&A claims volumes and increasing severity
London (4th November 2026) – Liberty Global Transaction Solutions (GTS), part of Liberty Mutual Insurance Group, today published its 2026 Claims Briefing, tracking trends across the representations & warranties (R&W) insurance market.
Based on GTS’s global claims experience, the report, the sixth since launching in 2019, examines claims notification trends, claims outcomes, policyholder behaviours and broader market developments. The results show increased claims frequency, with GTS receiving a record number of notifications in 2025, and a notable uptick in claims severity.
The report cites increased transaction activity and growing policy volumes as key drivers, highlighting the product’s success in becoming an intrinsic part of modern dealmaking. However, following several years of broadening coverage, falling retentions and highly competitive pricing, the report highlights an impending inflection point for the R&W market.
Key findings include:
- Record notifications: GTS received 176 R&W notifications globally in 2025, the highest annual total in its history and an increase of approximately 26% compared with 2024
- Increasing notification frequency: Compared with a historical rate of approximately 1 in 5 policies generating a notification, the report found this is now trending closer to 1 in 4, with particularly strong increases seen across EMEA from 2023 onwards
- Increase in larger claims payments: Claims payments of $10 million or more represent approximately 75% of total claims paid, up from around 68% at the end of 2024
- Record claim payments: Across each of its regions during 2025, GTS paid its largest-ever claims across all three regions in 2025, with individual payments reaching approximately $55 million in EMEA, $50 million in APAC and $44 million in the Americas
- Accounting and financial issues: These continue to be the largest driver of losses, accounting for 52% of amounts paid and reserved, while material contract and customer-related issues remain a significant source of large claims
- Evolving claims dynamics: The report links rising claims severity to factors including the growth of nil seller recourse structures, lower retentions, more proactive post-closing reviews for potential breaches and greater use of valuation-based loss calculations. These trends are associated with larger and potentially less predictable claims, particularly in the Americas and on smaller transactions
Gareth Rees, Global Lines Leader, GTS, said: “The value proposition of R&W insurance remains as strong as it has ever been. Buyers and sellers increasingly regard the product as an essential component of modern M&A transactions, with the market having established an impressive track record for paying significant claims.
“However, the trajectory of claims trends outlined in the report raises important questions about the long-term sustainability of certain aspects of the product. Coverage has expanded considerably, retentions have fallen and claims severity continues to increase. The challenge for insurers is to ensure the product adapts as regards pricing structure and coverage terms to enable it to manage the severity it now carries whilst continuing to provide value to all stakeholders with an interest in the long-term of the R&W market.”
Click here to view the full report.
The foregoing is not professional advice nor legal advice, is provided for information only, and is not a substitute for consulting with a professional.
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