Insurance Due Diligence

Independent Insurance Due Diligence for M&A Transactions

Matrix Global provides an expert, independent Insurance Due Diligence (IDD) solution tailored to M&A investments worldwide. We work with Private Equity Houses, Legal Teams, Corporate Acquirers, Investment Banks & Advisors and Management Teams to deliver a comprehensive, technical review of a target company’s insurance programme. Our service ensures consistency, transparency, and reassurance in this critically important area of risk assessment.

Why Insurance Due Diligence Matters

In any M&A transaction, insurance is a fundamental factor in protecting the value of the investment. A poorly structured or inadequate insurance programme can expose buyers to unforeseen liabilities, hidden risks, and costly disruptions. Matrix Global’s IDD provides a clear, impartial assessment of the target’s insurance arrangements, enabling confident decision-making and risk mitigation.

Our Independent Approach

Unlike traditional insurance brokers, Matrix Global is independent and free from conflicts of interest. We do not sell insurance, nor do we promote ‘off-the-shelf’ solutions. Our IDD process is fully transparent, ensuring an unbiased review that highlights the true risk landscape of the target company.

What Our Insurance Due Diligence Covers

• Comprehensive Technical Review – Assessment of the target’s insurance programme, covering adequacy of coverage, service quality, and cost-effectiveness;
• Forensic Policy Examination – A deep dive into policy wording, exclusions, conditions, warranties, and claims history to identify any gaps;
• Pre- and Post-Completion Risk Mitigation – Identification of key issues requiring attention before and after deal closure to ensure seamless risk transfer;
• Strategic analysis of the options available to optimise the insurance programme;
• Holistic Oversight – A full review of the impact of the transaction on insurance policies, identifying potential pitfalls and solutions.

The Matrix IDD Process

We follow a structured six-step process to deliver the independent perspective our M&A clients require:

Understand

• Gain insight into the target’s business model, risk profile, operations, and strategic insurance objectives.

Assess

• Evaluate key risk exposures, including operational, contractual, supply chain, environmental, and statutory risks.
• Assess the current insurance programme’s total cost of risk and effectiveness of risk management relationships.

Review

• Analyse the target’s existing insurance structure, including exclusions, warranties, and legacy cover.
• Examine historical loss trends and the impact of a change of control.

Map

• Benchmark the target’s insurance programme against industry standards and best-in-class coverage.
• Identify uninsured or under-insured risks.

Report

• Deliver an independent technical review, including:
• Adequacy of the current programme.
• Identification of additional insurance solutions.
• Recommendations for improvements and associated cost implications.
• Prioritised action plan for pre- and post-completion risk management.

Implement

• Provide follow-up support, including:
• Assistance with Warranty & Indemnity (W&I) placement.
• Key Person insurance strategies.
• Transition management for insurance programme adjustments.
• Broker selection and appointment guidance.

Delivering Value to Investors and Management Teams

With Matrix Global’s IDD, buyers and internal management teams gain clarity and confidence that the target’s insurance programme is structured correctly for its risk profile. If deficiencies are identified, our report provides a clear roadmap for resolution, ensuring optimal outcomes at future renewals. Our expertise allows investors and management to focus on the business, knowing their insurance arrangements are robust, effective, and ready to respond when needed.

For independent Insurance Due Diligence that enhances deal certainty and protects your investment, contact Matrix Global today.