With the dust clearing on the pandemic imposed lockdowns, dealmakers continued with a frenzy of transactions over the latter half of 2021 and into 2022. PwC Global noted a 24% increase in deal activity from 2020 and the Lockton Transactional Risks team placed over 350 policies across Europe; our busiest year on record. The flurry of dealmaking led to both positives and negatives in the transactional risk market. New products and innovative usage of existing products were stress tested in the white heat of dealmaking but capacity restraints from the insurance market, both financially and in manpower, led to difficult coverage and pricing for buyers in Q4 of 2021.
Whilst dealmaking continues, the mounting headwinds of inflation, supply chain and employment issues from lockdowns, the war in Ukraine, spiralling interest rates, commodity and energy issues and potential political instability continue to raise alarm bells for dealmakers.
As we release this report in Q4 of 2022, however, we look ahead with optimism at a transactional risk market brimming with innovation, new entrants, technological and product development, and boundless enthusiasm to help dealmakers gain comfort, close difficult deals; and unlock value, whatever the market conditions.
Please click below to read our market update for 2022-23 and get in touch if you have any questions or would like to discuss a live transaction.