In the past, RWI insurers have not prioritized the buyer's due diligence regarding the condition of the target's assets. They typically assumed that buyers were performing sufficient investigations.
However, a notable shift is occurring in the industry, as insurers are now beginning to scrutinize these due diligence efforts more closely. This change reflects a growing awareness of the potential risks associated with asset conditions.
As insurers adapt to this new focus, it may lead to more rigorous evaluations and potentially impact the terms and pricing of RWI policies in M&A transactions.