Warranty And Indemnity Insurance In MENA

Warranty and Indemnity (W&I) insurance has evolved from a specialist solution on a handful of high profile cross-border deals to a mainstream risk-allocation tool that now supports more and more global private mergers and acquisitions. The logic behind the product is elegantly simple; rather than leaving sellers exposed to post completion claims, or obliging buyers to accept residual risk, an insurer steps in as the primary obligor for breaches of the warranties set out in the sale and purchase agreement. Save for fraud, the insurer carries the loss, and the buyer's recourse is redirected away from the seller's balance sheet. For sellers, that translates into a clean exit and immediate distribution of sale proceeds; for buyers, it delivers certainty of recovery, extended limitation periods, higher caps and, in many cases, broader protection than could realistically be obtained through direct negotiation alone.