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Euclid Transactional's Third Annual Global RWI Claims Study

On January 27, 2026, Euclid Transactional, LLC, a prominent managing general agent focused on transactional insurance, published its third annual Global Representations Warranties/Warranty Indemnity Insurance (RWI) Claims Study. This comprehensive report draws from nine years of global claims data and sheds light on critical insights and emerging trends that are vital for stakeholders engaged in the merger and acquisition (M&A) or transactional liability insurance landscape.

Key Findings from the Latest Study

The latest edition of the Global RWI Claims Study highlights claims payments exceeding $1 billion since the foundational establishment of Euclid Transactional in 2016. Among these, a significant amount of over $314 million stemmed from 44 claims paid within the preceding year. This period notably indicates heightened activity in claims payment—a crucial aspect reflecting the current state of the market.

Phil Casper, Principal at Euclid, emphasized that the findings underscore their commitment to a premium underwriting and claims service that prioritizes efficiency and client satisfaction. Remarkably, in the six years it took to disburse the initial $500 million in claims, the subsequent $500 million was paid out in less than two years, demonstrating a marked acceleration in claims resolution, particularly for complex RWI claims.

Highlights of the Global RWI Claims Study:
1. Enhanced Efficiency in Claim Resolutions: The report showcases that nearly 54.5% of claims paid were settled within a year—indicating a nearly 20% improvement in resolution speed compared to prior studies. This enhanced efficiency reflects the advantages of Euclid's experienced claims handling crew.
2. Rising Severity of Claims: Alarmingly, over 45% of the losses recorded from July 2024 to June 2025 involved payments of $20 million or more. Additionally, notable is the doubling of claims citing diminution-in-value losses in the years 2023 and 2024 compared to 2022, signifying a shift in the nature of claims.
3. Surge in Claims from the EMEA Region: Euclid's EMEA (Europe, Middle East, and Africa) division reported a staggering 333% increase in claims notifications in 2024, a significant rise from 2021. This influx stemmed from various jurisdictions across Europe, facilitated by Euclid’s offices in the UK, Germany, Denmark, Sweden, and France.

Meg Gardiner, Chief Legal Officer at Euclid, articulated that this study serves as a timely reflection on the state of the transactional insurance industry through the operational lens of their large claims team. The findings highlight the ongoing changes in the RWI landscape and emphasize the company's continued commitment to efficient claims handling.

Conclusion

Euclid Transactional remains a significant player in the transactional insurance arena, offering comprehensive coverage and support across various regions, including the Americas and Asia Pacific. Their report not only showcases the substantial financial impact they have made since their inception but also reinforces the pressing demand for effective insurance solutions in an increasingly complex transactional environment. As the industry evolves, actors in the M&A and transactional liability insurance sectors can gain valuable insights from these revelations, adapting their strategies to better navigate the current landscape.

Euclid Transactional maintains its position at the forefront of this evolving insurance sector, empowered by a robust team of underwriters and claims executives dedicated to providing top-tier service, ensuring that clients are well-prepared for the challenges ahead.