Views From the Market Episode 134 - The Growing Midmarket Presence of Representation and Warranty Insurance
Apr 29, 2025
Rishi Dhir, Head of Transactional Insurance Solutions at Willis Towers Watson, shares insights from his expertise in mergers and acquisitions. He discusses the increasing traction of representation and warranty insurance (RWI) in Canadian midmarket deals as low as $5 million. Rishi highlights decreased premiums and deductibles, as well as the growing importance of supply-chain flexibility amid tariff changes. The conversation underscores how RWI supports buyers through careful due diligence and tailored industry solutions, while also emphasizing the need for knowledgeable brokers.
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RWI Has Moved Into The Lower Mid‑Market
- Representation and warranty insurance (RWI) now applies regularly to deals as small as $5M enterprise value in Canada.
- Premiums and deductibles have fallen, expanding applicability across the lower mid-market.
Don't Assume Narrower Coverage On Small Deals
- Expect similar breadth of coverage on smaller deals as on larger ones; carriers do not necessarily narrow coverages for size alone.
- Address diligence gaps because exclusions still focus on identified or undelleged issues.
Buy Meaningful Limits And Reconsider Walkaways
- Consider buying higher limits than the 10% rule of thumb in lower mid‑market deals to gain meaningful protection.
- Evaluate walkaway (no‑seller indemnity) options as premiums and pricing gaps have narrowed recently.