R&W Insurance

Question 1

Specific insurance solutions to ring fence existing issues to achieve acceptable level of exposure for these six categories

Answer 1

1. Litigation
2. Environmental
3. Break fees
4. Fraudulent conveyance
5. Successor liability
6. Contingent risk

Question 2

What percent of buy-side R&W insurance deals have NO seller indemnity at all?

Answer 2

Aon: 20-25%
Rosen: 30-50%

Question 3

What is increase in retention for buy-side R&W insurance deals have NO seller indemnity at all?

Answer 3

With indemnity, retention is 1.0 - 1.5% of PP

Without indemnity, retention is 1.5 - 2.0%

Question 4

RWI covers consequential and multiples for damages?

Answer 4

Carriers will follow silence in agreement with silence in policy

Question 5

Do these policies actually pay out?

Answer 5

AIG paid over $100MM under policies in 2015

Question 6

What top 5 R&W breaches most often lead to claims?

Answer 6

1. F/S
2. Tax
3. IP
4. E/B

Question 7

% of RWI policies that have a claim?

Answer 7

12-18%

Question 8

Premium as % of policy limit for 1. R&Ws 2. Tax 3. Litigation and 4. Environmental

Answer 8

1. R&Ws = 3%
2. Tax = 3 - 6%
3. Litigation = 7-10%
4. Environmental = Varies based on exposure