Scott Seaman Discusses Factors Behind the Rise in Popularity of Transaction Insurance Policies

Scott Seaman—Chicago-based partner and co-chair of Hinshaw's global Insurance Services Practice Group—recently discussed with Law360 Insurance Authority the growth in transaction insurance policies notwithstanding a recent decline in company mergers and acquisitions.

Seaman notes that while representations and warranties insurance remains the most popular form of transaction insurance, policies—including tax insurance and contingent liability insurance—are gaining momentum. He says these policies have grown alongside representations and warranties insurance because "they often fill in some gaps not covered" by the more popular product.

Seaman credits this rise in popularity to improvements in underwriting, which he says have made the process of applying for such insurance more streamlined. "[T]he process has been streamlined considerably as insurers have become more comfortable accepting buyers' deal due diligence [and] started employing M&A attorneys on their teams," Seaman said. He added that insurers now also "have a better understanding of the risks, and understand the needs of their policyholders."

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"Transaction Insurance Marching On Despite M&A Slowdown" was published by Law360 on October 21, 2022.