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