DealLawyers.com Blog

It seems the days of RWI being limited to deals of $50 million or more are over. This Woodruff Sawyer blog says that RWI providers are now offering products with features that make sense for smaller deals.

Small deals have always faced a structural mismatch with RWI. The diligence burden, underwriting timelines, and fee structures were designed for complexity and scale. For a $20 million add-on, the traditional RWI process can feel disproportionate, both in terms of cost and time. Insurers are now responding with products that preserve the core value proposition of RWI—risk transfer, deal certainty, and clean exits—while eliminating friction.

It describes two new offerings — MIO Fusion and Blue Chip Aqua — and says that these signal a broader shift in the market for RWI — which is moving toward more options with tiered offerings to align with deal size & complexity and the sophistication of the buyer. In fact, this Horton Group blog says they’ve seen coverage for deals as small as $5 million and premiums for as little as $30,000.

Woodruff Sawyer predicts other innovations in the RWI market, including: