Willis Towers Watson
What is it?
Tax insurance provides insurance protection against the risk that a tax authority challenges a tax position or structure.

Tax insurance originated from corporate mergers and acquisitions, where a buyer's advisers identified the potential for a challenge by the tax authority which could impact on the value of the target business.

The insurers offering tax insurance have developed their understanding of tax risks and have therefore expanded their appetite for underwriting tax insurance into other tax exposures arising from a single or line of transactions entered into by a bank or large corporate.
Who should consider buying this insurance?
Tax insurance should be considered by any corporate entity, investment fund, bank, buyer or seller or other stakeholder who:

– Has taken or is considering taking a tax position that they believe in but
    which they wish to gain certainty of
– Is buying or selling a target business and needs to gain security
   regarding a tax position
– Has a contingent tax liability within their accounts that, if released via an
    insurance policy, could enable a revised financial position to be recognised
– Is unable to release funds to investors or close the position entirely until
   the contingent tax exposure has been dealt with
How do we add value?
FINEX Global consists of highly experienced and qualified professionals with both legal backgrounds and extensive experience of arranging insurance for complex corporate transactions. Understanding not only the structure and tax risk exposure but also the commercial purpose of the steps is important in advising on how tax insurance can be structured to protect and enhance the client's position.

The insurers offering tax insurance are limited; as a result, most insurers offering tax insurance will only consider risks which are presented by those insurance brokers who have the knowledge and experience to guide the client on the process of arranging such policies.

We can provide clients and their advisers with:

– Information insurers require (both initially and on-going)
– The structure of the policy and policy coverage
– Potential insurers appetite in the current market
– Access to the global insurance market
– Experience of previous tax insurance placements
– The insurers underwriting process and timescales

Our expertise, knowledge and experience of working with the tax insurance market are invaluable in assisting our clients and their advisers in arranging tax insurance.

We have a number of core initiatives which provide tangible value to our clients' risk management process including:
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