HWF Partners, the specialist transactional risk insurance broker and advisor, today released its annual W&I Market Claims Report – a comprehensive study based on data from 24 insurers and 18,563 policies placed globally (excluding North America) since 2016.
Key findings show that 2025 is predicted to exceed the record-breaking levels of W&I growth and adoption recorded in 2024. W&I is now an established mainstream product in Western Europe, with increasing acceptance in Italy, CEE and the Baltics also contributing to strong growth in 2025.
The data pool shows that a significant majority of claims notifications continue to arise from risks that cannot be diligenced, with over half (52.44%) arising from seller fraud, non-disclosure and third-party claims. These are, by definition, unknown or unforeseeable risks beyond the scope of even the most robust pre-transaction assessments. This finding highlights the core value of W&I insurance as protection against residual risk, rather than a substitute for diligence.
The report also showed that paid claims continue to increase, having grown steadily since 2022, with nearly half (48.51%) of closed notified claims resulting in a payment. The improved data pool also confirms a high notification rate under W&I policies, with 12.46% of policies receiving a claims notification across the review period, compared with 11.64% based on the data in last year’s survey, indicating a consistent and maturing claims environment.
Interestingly, 49.83% of claims were brought by financial sponsors (or their portfolio companies), yet they received 60.31% of total claims payments, highlighting how financial sponsors derive a disproportionate share of claims value, reflecting their market influence. This highlights the commercial leverage repeat users of the W&I product can exert, reflecting competitive insurance market dynamics where scale, experience and repeat business can translate into stronger claims outcomes.
David Wall, managing director and co-head of private equity at HWF Partners, said: “This report once again confirms hugely positive claims outcomes across the EMEA region. With 2025 set to break the record levels of W&I uptake in 2024 and a maturing claims environment, we expect to see claim payments continue to grow. Our data pool also demonstrates W&I’s effectiveness in protecting insureds from risks beyond the scope of due diligence, encouraging repeat usage. With markedly improved claims experience also driving consumer confidence, the market is ideally placed for further growth in the year ahead.”
The study, based on data from 18,563 policies, is HWF’s most comprehensive yet, building on the 2024 report which covered 15,080 policies.
Please find a copy of the full report attached.
Interviews with the report authors can be arranged on request.
