Globally a specialized type of insurance agency that, unlike traditional agencies, is vested with underwriting authority from an insurer is called Managing General Agency (MGA), while it is not defined under Japanese laws or regulations. We are vested with such authority and provide underwriting services on behalf of MSI
(there is no capital ties between MSI and us).
Outstanding underwriting skill and experience
Kosuke Inada acted as a chief underwriter of Warranty & Indemnity insurance (W&I insurance) at a general insurance company in Japan also provided consulting services on product development and underwriting of W&I insurance for Japanese insurers since our foundation in 2019. Kosuke is recognized as a pioneer in this field in Japan. Other underwriters are also specialists in insurance, M&A, corporate laws, tax and accounting and they have a plenty of experience in underwriting of W&I insurance. With such experience, we can provide speedy, flexible, and suitable underwriting services for any M&A deal.
Strong financial security
We provide underwriting services on behalf of MSI which can offer a total limit of liability of JPY 3 billion (or other currency equivalent) per deal. MSI has extremely strong financial security and has been assigned a rating of “A+” by Standard & Poor’s and “A+” by A.M. Best (as of July 26, 2021). For more information about MSI, please visit: https://www.ms-ins.com/english/
Warranty & Indemnity insurance
Warranty & Indemnity insurance (W&I insurance) protects the insured from unknown breaches of representations and warranties made by sellers in an acquisition agreement. W&I insurance provides credit protection and extended survival for protection for buyers, protects relationships with management and sellers after the deal, helps buyers win the deal in auction, and facilitate the negotiation by bridging the gap at impasse. It also provides certainty for sellers by limiting indemnification obligations to buyers and increases cash that sellers receive at closing by reducing the amount set aside for an indemnity escrow.
Generally, premium ranges from 1% to 4% and the scope of coverage is individually decided subject to underwriting. It usually takes about 3 to 4 weeks from the first meeting with brokers to policy binding.