Sven Förster’s Post

Navigating Risks in M&A Transactions: A Lawyer’s Perspective on Insurance Due Diligence and W&I Insurance https://lnkd.in/geNQx42w #legal #law #m&a #insurance #duediligence

Really privileged to chat about the current trends and issues in the growing intersect of insurance and legal finance with an all-star panel in London at the inaugural Dealmakers Forums European conference. Many thanks to co-panelists Verity Jackson-Grant, Tamar Katamadze, and Jamie Molloy for the interesting and lively discussion. Some key takeaways: 1. Insurance is truly being innovative in this space -- something that can be surprising for folks that have limited interactions with the wider insurance community. It's part of the natural evolution to the legal finance market, and it's complimentary to it. 2. Mosaic Insurance's new solution for sovereign default in international arbitration is a good example of this. Ditto what Ignite Specialty Risk and others can do in the ATE and capital protection space. This is exciting! 3. BUT, there are limits to what insurance can do, and where it can play. Insurance underwriters are seeking long term, sustainable trades with law firms, legal investors, and litigants. This has to be understood and taken into account before bringing a risk to market. 4. The jargon! JPI, AJI, ATE, WIP, CPI, the other CPI, "wraps", ROL, D&C -- it's endless, and can be confusing. But all these solutions actually set about to solve the same core issues and have logical market principles behind them. 5. What do you? How do you navigate this sprawling area? It's admittedly self-serving, but the reality is you need a seasoned broker with true expertise in the area and deep market relationships. And you should bring them in early to position a risk the right way in the market. We've deliberately built the largest and best team in the business at CAC Specialty in order to provide this level of service. 6. And if you're a lawyer in this space, you should be trying to get as educated as you can about the art of the possible to properly advise clients and best position your law firm. Simmons & Simmons use of Verity Jackson-Grant is brilliant in this way, and should be seen more at law firms.