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Price of merger insurance is dropping

The price of merger and acquisition insurance, which inflated amid a busy deal-making season last year, is starting to drop, The Wall Street Journal reported April 13.  

The companies that want insurance to protect against risks involved with mergers and acquisitions should expect lower prices and more capacity for staff to handle their requests, according to the report.  

"We're not seeing that type of pressure, both on pricing and availability, that we were," Jodi Rosensaft, a managing director with Marsh, said during a panel, according to the Journal. 

There was an influx of merger and acquisition activity last year, which put pressure on the insurance industry to fund all deal-related policies that companies wanted, according to the report. But now that the deal-making pace has slowed, the trend has reversed, and insurers look to be more comfortable with backing deals in healthcare, Ms. Rosensaft added.

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