TRANSACTIONAL RISK INSURANCE: DEAL-ENABLING RISK TRANSFER SOLUTIONS
Buyers and sellers continue to look for ways to protect the value unlocked in a transaction. Lockton helps these parties transfer the exposure to financial loss through the use of transactional risk insurance products.
Though initially introduced to the insurance market in the late 1990s, the use of transactional risk insurance products has increased in popularity in recent years. This increase is driven by several factors, including:
A decreased appetite for risk among parties to a transaction.
The evolution of products available to provide broader coverages and more favorable terms.
A reduction in premiums charged.
A smoother underwriting process.
A greater awareness of the products.
Ultimately, it is the ability of these products to protect an investment against an unanticipated financial loss...
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Charles Sternberg, CPCU, RPLU, ARm
Vice President, Project ManagerPECAP®
Private Equity and Corporate Acquisitions Practice (PECAP®)