January 22, 2018 09:45
Photo : Freepik
The cyber risks, transactional risks, and the international growth are the three risks identified by Chubb as the most important facing mergers and acquisitions, global, wrote the insurer in its most recent white paper. In the first quarter of 2017, the transactions totaled $ 678,5 billion u.s. dollars, an increase of 8.9 % compared to the same period in the previous year.
«The environment of mergers and acquisitions is changing rapidly, and private investors are constantly faced with financial risks growing, including cybersecurity, the transactional risk and the expansions of international,» says Seth Gillston, leading to mergers and acquisitions and private finance at Chubb. It suggests a mechanism of risk transfer for transactions to take place.
Do business with an insurer
In its white paper, Chubb suggests for firms to private investment to do business with an insurer in the course of transactions in order to properly evaluate and treat in a comprehensive manner the liabilities complex to a target entity. Firms should consider the services and the products of an insurer with a large portfolio of products in order to absorb all the complex after the conclusion of the transaction.
«The insurer should have a response capability sufficient to allow the conclusion of the transaction within a certain deadline and should eliminate or minimize the possible surprises for the uninsured,» explain the authors.