2026 RWI Claims Report

The 2026 RWI Claims Report provides essential insights on the representations and warranties insurance (RWI) market through comprehensive claims analysis. This report helps M&A professionals understand emerging trends in claim severity, subrogation activity, coverage adequacy and the practical factors that separate successful claims from frustrating ones.

Key takeaways

1. 01

   RWI claim severity is notable

   • Claim severity, not frequency, is the dominant story. In 2025, WTW North America clients recovered over $150M, with an average resolved claim payment of ~$7.3M, both record highs. Notably, the average recovery represented ~50% of applicable policy limits, underscoring how meaningful losses have become when claims succeed. Insurers are increasingly concerned that pricing has not kept pace with severity trends and are actively reassessing underwriting, claims handling and subrogation strategies as a result.

2. 02

   Some breach types drive nearly all paid losses

   • Across industries, geographies and deal sizes, loss severity correlates most strongly with breach type. Three categories dominate outcomes:
     1. Material contracts / customer issues
     2. Financial statement breaches
     3. Compliance with laws
   • Why does this matters? Deals that appear “low risk” on traditional metrics may still generate outsized claims if these core issues are missed.

3. 03

   Long-term partnership are critical now more than ever

   • Both insurers and buyers consistently emphasize the importance of trusted, long-term partnerships. Insurers favor buyers who conduct thoughtful diligence and present claims clearly. Buyers seek insurers who underwrite and manage claims efficiently. Increasingly, both PE and strategic clients are gravitating toward small, curated panels of insurer partners.

Our latest report provides insights that may play an important role in your team’s dealmaking in 2026. By understanding these trends, you can make smarter decisions about coverage, diligence and risk management.

Download this report to stay informed, prepared for the challenges and opportunities ahead and learn more about how WTW can support your firm’s deals now and in the future.

Author

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Dom Spinelli

Head of Transactional Insurance Claims, North America

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