Two years after the Earth was wiped out, Covid-19 continues to affect national and international ecosystems. The insurance world is no exception. With guaranteed liability insurance, or “W & I insurance,” and tax risk-focused Transact, we offer eclectic customer-friendly insurance solutions.
A vibrant market modified by Covid-19
Few markets have been unaffected by this global crisis, and the transaction insurance market has been strongly affected by the initial confinement. Subsequent outages have created a lot of uncertainty that emphasizes corporate valuation and the fulfillment of key contracts. M & A activity quickly returned to normal in most sectors, but the crisis affected transaction trends in certain sectors, such as the hotel industry, before the peak transaction volume peaked between 2021 and 2022. Continues to exert. Still affected or Covid’s influence is bringing IT and medical care.
There are also changes in the attitudes of the parties towards the use of W & I insurance. If, before Covid-19, these insurance products were used to facilitate transactions by reducing the seller’s residual liability, especially in the context of the “auction” process, you now have It seems that more and more buyers are voluntarily looking for insurance to ensure that they are a reliable remedy in the event of a warranty breach. In this way, Covid-19 has made it possible to identify the role of an insurance company that is considered a solid and effective guarantor. Transact is a perfect representation of this.
Transact Risk Partners: Insurance Expertise on M & A and Tax Risk
Transact is a general management agency (MGA) specializing in M & A and tax risk insurance. As an MGA, Transact is obliged by the insurance company to negotiate a professional insurance policy with the resources and expertise that Transact needs. This structure allows Transact to focus on the underwriting and needs of multiple diverse clients, including investment funds, industrial and private equity. Transact specializes in insurance for files with risks in France, Benelux and Germany.
To do this, Transact sets itself apart with its in-house expertise and vast network of tax advisors. In fact, the team consists primarily of former M & A and tax attorneys, all aware of the true challenges of their clients and have been trained and worked in “first-class” or “four major” companies. Therefore, each party’s transactions and requests are fully controlled, analyzed, and controlled. Combining this field of technical skills with field experience, Transact can be proactive in its specialized businesses and markets. Transact intervenes to facilitate customer transactions and avoids adding new steps to very short deadlines, which are often feared by customers. File analysis and bespoke insurance policy issuance must be perfectly aligned with the business schedule.
This expertise is also reflected in claim management. As with damages, dealing with customers must be quick and practical.
Liability Guarantee and Specific Compensation Insurance Contracts (W & I)
It was rarely used in France about five years ago, but now more and more French companies have W & I insurance. Some players even estimate that such insurance will be available in 15% to 20% of transactions in France, suggesting great potential for development. As a reminder, these insurance policies are specifically intended to provide specific coverage in the event of a breach of the declarations and warranties contained in the acquisition agreement. Such policies provide protection not only to buyers and sellers, but also to intermediaries involved in the merger and acquisition process. Backed by a wealth of experience and know-how, Transact provides its customers with personalized adaptive solutions for fast transaction protection.
Tax risk insurance
If the acquirer is faced with complex tax laws, the impact is unpredictable and can have a significant impact on the business. Whatever the situation, this insurance tends to guarantee identified but unrealized tax risks. The purpose in that case is to provide protection against this potential tax obligation and thus allow clients to carry out transactions without insured tax risks. Therefore, Transact provides each client with a customized, practical and innovative solution by integrating these tax ranges into W & I insurance policies or independent tax insurance. Frequently insured risks in France are related to IFU and DAS2 filings and a “3% tax”.
A progressive and practical approach to insurance adapted to the French market
Transact has successfully redefined the underwriting process since its inception in 2017. Today, Transact is a leader in the Benelux market and one of the major players in the French market. Transact offers value based on innovation, efficiency and rigor, providing a practical and visionary approach to insurance. To date, more than 700 operations have been performed, with a total risk of € 9.4 billion. Transact is particularly marketed thanks to the French and French speaking team led by François Piquet, is currently growing, understands the peculiarities of the French market and works in both English and French upon customer requirements. can do. ..