Warranty and indemnity growth and adoption in 2025 is predicted to exceed the record-breaking levels recorded in 2024, according to the results of a study by broker and advisor HWF Partners. The study – based on data from 24 insurance and over 18,500 policies placed globally – suggests W&I has become an established mainstream product across Western Europe.

The data pool shows that a significant majority of claims notifications continue to arise from risks that cannot be diligenced, with over half (52.44%) arising from seller fraud, non-disclosure and third-party claims. HWF says these are, by definition, unknown or unforeseeable risks beyond the scope of even the most robust pre-transaction assessments.

The report also showed that paid claims continue to increase, having grown steadily since 2022, with nearly half (48.51%) of closed notified claims resulting in a payment. The improved data pool also confirms a high notification rate under W&I policies, with 12.46% of policies receiving a claims notification across the review period, compared with 11.64% based on the data in last year’s survey, indicating a consistent and maturing claims environment.

David Wall, managing director and co-head of private equity at HWF Partners, said: “This report once again confirms hugely positive claims outcomes across the EMEA region. With 2025 set to break the record levels of W&I uptake in 2024 and a maturing claims environment, we expect to see claim payments continue to grow.

“Our data pool also demonstrates W&I’s effectiveness in protecting insureds from risks beyond the scope of due diligence, encouraging repeat usage. With markedly improved claims experience also driving consumer confidence, the market is ideally placed for further growth in the year ahead.”