Euclid Study Finds Rising W&I Claims Losses
Euclid Transactional's fourth annual Global W&I Claims Study reports carriers paid $518 million on 255 claims in the latest 12-month period.
Updated on Nov. 3, 2026 in Corporate Finance
Euclid Transactional, a New York-based managing general agent specializing in transactional liability insurance, released its fourth annual Global W&I Claims Study. The study finds aggregate loss paid rose 44% compared with the prior period, as carriers paid $518 million on 255 claims.
Why it matters
Rate declines through 2022 to 2024 coincided with rising claim activity, and Euclid expects policies written in 2023 and 2024 to be unprofitable in North America. The findings signal pressure on pricing and capacity across the transactional insurance market worldwide.
Carriers paid $1.686 billion across 8,502 transactions since 2016, with payments of $20 million or more accounting for 54% of loss paid in the latest period. The study does not report how many open claims remain unresolved.
The players
Euclid Transactional
Euclid Transactional is a New York-based managing general agent specializing in transactional liability insurance, which publishes annual claims analyses for the W&I market.
Nexus Underwriting
Nexus Underwriting is a warranty and indemnity insurance underwriter that exited the W&I market in October 2024.
The details
The study analyzes nearly a decade of claims data, showing North American RWI rates fell from 5.73% in Q1 2022 to 2.65% by mid-2024 while EMEA rates declined from 2.11% to 1.46%. Financial statements claims account for 13% of EMEA notices but drive 58% of total EMEA loss paid, and Nexus Underwriting withdrew from W&I in October 2024.
Timeline
Q1 2022: North American RWI rates peaked at 5.73%.
Q3 2022: EMEA RWI rates peaked at 2.11%.
Mid-2024: North American RWI rates fell to 2.65%.
October 2024: Nexus Underwriting withdrew from W&I.
2023 and 2024: Policies written in these years are expected to be unprofitable in North America.
Market Landscape
The findings extend a multi-year pattern in which W&I pricing softened even as claims grew, a dynamic Euclid has tracked since its first annual study. Rising loss ratios in North America and EMEA suggest the competitive pricing that drove the 2022 to 2024 rate decline is now colliding with claim experience.
Buyers and sellers in cross-border M&A may face firmer W&I pricing and tighter retentions as carriers respond to rising losses. Deal teams budgeting for transaction insurance should expect the cost and terms of coverage to be less favorable than during the 2022 to 2024 period.
The takeaway
Deal-makers should treat W&I insurance terms as a moving target, reviewing retention levels and pricing assumptions before committing to a transaction. The study suggests the market is shifting toward fewer, larger underwriters with better claims data.
Further reading
Explore more Corporate Finance coverage for context on how deal-protection insurance markets are shifting.
