Large insurers are already offering protection for cross-border deals that may fall foul of regulatory scrutiny from the U.S. Committee on Foreign Investment, with Aon being the first to provide this type of coverage.
However the election of Donald Trump as President of the United States, with his rhetoric against Chinese trade and investment, may potentially see such risks for US-China deals increase.
Insurers have begun offering protection for cross-border deals that might fall apart due to regulatory scrutiny, targeting Chinese companies that are aggressively pursuing acquisitions in the United States. Outbound M&A volume from China has more than doubled so far this year to nearly $196 billion, a record, according to Thomson Reuters data. The United States accounts for nearly 30 percent of these deals, making it the most targeted country.