W&I insurance for Chinese investors in Germany
During the last years, the number of Chinese outbound transactions to Germany have increased considerably and reached a record high in 2016. Often, Chinese investors are not familiar with the particularities of the European market. Against this backdrop, the need to mitigate transactional risk is increasing in particular for Chinese investors. The use of Warranty & Indemnity (W&I) insurance, has become commonplace in the US and European M&A markets over the last years. With SASAC having emphasized the importance of risk insurance in the context of outbound investments for SOEs in their regulation of 7 January 2017, the importance of W&I insurance for Chinese outbound M&A maybe further increase.