Willis, the advisory, broking and solutions firm, has introduced Merger Protect, a specialised insurance offering designed to assist organisations in managing the financial implications of US antitrust regulatory reviews during mergers and acquisitions.
The company presents the product as part of its broader transactional risk suite, developed to respond to changing challenges within the M&A landscape.
Willis explains that Merger Protect is intended to reimburse specified costs arising when a Second Request is issued under the Hart-Scott-Rodino Act by the US Federal Trade Commission or the Department of Justice, and, where relevant, during any subsequent enforcement action.
The company indicates that the solution is aimed at supporting buyers, sellers and their advisers in navigating a particularly demanding and resource-intensive stage of deal execution.
According to Willis, Second Requests often involve extensive data collection, document production and detailed analysis, which can extend timelines and increase costs. The company notes that fees associated with legal counsel, economists, e-discovery and document review may escalate rapidly, creating uncertainty around transaction expenses.
“A Second Request doesn’t mean a deal is broken but it does create financial uncertainty that comes with a regulatory deep dive,” added Aartie Manansingh, Head of Alternative Asset Insurance Solutions for Willis. “Merger Protect gives deal parties something they haven’t had before: a way to protect against the cost volatility of regulatory review without compromising their ability to defend the transaction. That is a meaningful addition to how sponsors and their advisors think about risk management in M&A.”
Willis states that the policy is typically arranged early in a reportable transaction, prior to any regulatory request being issued. In the event of a Second Request, it reimburses covered response costs in accordance with agreed terms, including applicable retentions and limits, and may continue to apply if the matter proceeds to enforcement.
The company adds that, depending on the structure of the policy, eligible costs may include fees for external legal advisers, consultants supporting the response, economists and industry specialists, along with expenses linked to data collection, hosting, document review, production and witness preparation.
Willis suggests that by turning uncertain regulatory costs into a defined insurance expense, the product allows organisations to plan with greater clarity, protect deal value and reduce exposure to unexpected financial pressure. It may also help minimise operational disruption by covering costs related to preparing executives and key personnel, enabling teams to remain focused on completing the transaction.
Willis further notes that its Litigation and Contingent Risk Solutions team works with clients to tailor cover to the characteristics of each transaction, including size, sector and regulatory exposure. The company highlights that the team combines specialist insurance expertise with insight into antitrust review processes and market developments, using data on Second Request activity and enforcement trends to help structure appropriate coverage.
