Spain
Warranty and Indemnity insurance: R&W insurance policies in M&A transactions
Since 2017, the use of R&W insurance policies in M&A transactions (known as R&W insurance or W&l insurance) is on the rise, in part because (i) the contracting process has been simplified in time and form; (ii) there is greater supply-side competitiveness, leading to lower premiums; and (iii) the trend has been driven by a seller’s market.
Therefore, although they are not yet widespread, until 2020 the trend was clearly upward, especially in transactions involving private equity funds and in auction processes. However, owing to the COVID-19 pandemic, this upward trend seems to have slowed down somewhat.