Notification frequency fell slightly from 2022 year of account (YOA) and 2023 YOA - a year-on-year decrease of approximately 21%.

We have paid out and reserved roughly $315m involving R&W claims, with the majority resulting from just five breach types.

We have seen an uptick in claims severity on the 2021 YOA, especially in EMEA (but anticipate that this will drop back again on the 2022 YOA and beyond).

While tax-related issues still make up a large proportion of notifications, we are increasingly seeing an uptick in third-party claims. As R&W policies typically cover costs associated with the defense of these claims, and these are rising steeply, insurers’ costs are increasing.

49% of R&W notifications involving an alleged breach of a general warranty are received within 12 months of closing, suggesting that insureds are becoming more systematic about assessing whether they have a policy claim post-acquisition.

GTS’ Americas region saw the smallest decline in R&W notification count in 2023. The Europe, Middle East and Africa region saw a notable drop in R&W notifications in 2023, while the Asia Pacific region experienced the largest fall, with the lowest number of R&W notifications in three years.