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See all the news storiesOn 17 March 2026, Tokio Marine HCC International (TMHCCI), in collaboration with law firm Galicia and broker Risco, hosted a focused webinar for the Mexican legal market exploring how representations and warranties (R&W) insurance operates in practice when claims arise.
Led by Naomi Barnes (TMHCCI), the session brought together lawyers from Galicia alongside representatives from Risco and TMHCCI, enabling a practical exchange of views grounded in real claims experience.
Beyond the “backstop”
R&W insurance is often described as a backstop in M&A transactions. In reality, the most complex and value-defining moments occur post-closing, when policy terms are tested through a live claim.
As adoption continues to grow in Mexico, a key point stands out: knowing when and how to activate a claim is critical. Early decisions can significantly influence both coverage outcomes and the time and cost involved.
A structured but nuanced process
The claims journey typically follows a structured path:
However, within that structure, complexity quickly emerges.
One of the most underestimated steps is the notice. While it does not need to be perfect, it must clearly articulate the facts and circumstances that could give rise to a claim. This early framing often sets the tone for the entire process.
From there, coverage analysis requires careful interpretation of sale and purchase agreements, disclosure materials and policy wording. These are areas where perspectives may differ between deal teams and claims specialists, and where experience plays a critical role.
Coverage is rarely binary. Many issues sit in grey areas, particularly around disclosure, known risks or specific indemnities, requiring detailed, evidence-based assessment.
Where claims converge: loss
Ultimately, most R&W claims converge on a single question: loss.
Whether assessed through diminution in value, remediation costs or financial adjustments, the chosen methodology can shape both the outcome and the timeline of a claim.
R&W claims are inherently evidence-driven. Strong documentation, clear communication and a disciplined approach throughout the process can significantly reduce friction and support more efficient resolution.
Insights grounded in experience
The session also included an open Q&A, reflecting on TMHCCI and Galicia’s experience handling claims and highlighting the practical realities behind policy wording.
These themes align with insights from the TMHCC Transaction Risk Insurance Claims Report (December 2025), which explores how claims develop in practice and where key challenges and opportunities arise.
They also reflect TMHCC’s global Transaction Risk Insurance capabilities and continued commitment to the Latin American market, combining international expertise with local insight to deliver effective outcomes for clients and brokers across the region, as the market continues to evolve.
