Navigating New Risks in a Fast-Changing World –Why We Started Pantheon
Pantheon Underwriters has just turned three. For us as founders, this anniversary is more than just a number. It is a reminder of how far we have come, how much we have learned, and how much more lies ahead.
The past three years have been intense: building a company, gaining the trust of clients and brokers, and managing deals in a market that never stands still. We have had late nights, setbacks, and moments of doubt, but also the great satisfaction of seeing Pantheon grow into its solid place in the M&A community as a trusted partner.
We feel now is the right time to launch this blog. The world of W&I and M&A insurance is changing fast, and with it, the risks our clients face. In this environment, we believe it is important to share insights, reflect on developments, and give a voice to the challenges we see every day.
Where It All Began
My first real encounter with W&I insurance was more than ten years ago, when Xianbei and I worked in the same M&A team at AIG. At that time, almost everything was still placed through London. If a deal took place in Germany, it was London underwriters who decided how the policy looked, what was covered, and what it cost.
For large-cap transactions, this worked reasonably well. But for the vast number of smaller and mid-sized deals which make up the backbone of the German economy it often didn’t. The wordings, the approach, even the timelines: many things simply didn’t fit.
Everyone who worked with W&I insurance back then still remember dozens of transactions where the sellers were family-owned since generations and deeply rooted in their ecosystem, but had no idea of M&A and even less so of W&I insurance. The "fancy" W&I policy in English language felt far removed from the reality of this business. That was the spark: The idea that German-speaking markets, and especially SMEs, deserved a product offering that reflected their reality.
How the Market Has Changed
Fast forward a decade, and W&I insurance has become a standard tool in many transactions. Awareness has grown, the product has matured. But one thing has not changed enough: SMEs remain underserved.
Roughly 90% of SME transactions in the German-speaking market still go without W&I insurance. Not because the need isn’t there, but because the product wasn’t designed with them in mind. The complexity from the transaction documents is not reduced by the classic way of W&I insurance, but even adds another layer of confusion sometimes.
That is why we created Pantheon: to combine international know-how with a genuine local approach, and to bring W&I insurance to the full spectrum of businesses.
Why SMEs Matter
When we talk about SMEs, we mean real businesses at the heart of our communities:
- Medical practices
- Local shops and Handwerksbetriebe
- Opticians, consulting businesses, facility managers and any other industries that are founder-owned
- Family-owned companies facing succession as the owner retires
- Start-up founders selling their first venture — a segment still largely untapped
These businesses represent the vast majority of economic activity. When they change hands, risks are just as real as in large transactions. A tax issue or warranty breach can be just as painful for a family business as for a listed corporation.
Our mission is to make sure W&I insurance is a vailable and useful for them too.
The Role of Brokers
One thing has never changed: the key to reaching SMEs is working closely with brokers.
Brokers often know their clients personally. Theyunderstand what keeps a business owner awake at night: whether it is the family’s financial security, the future of employees, or the smooth handover to the next generation.
Together with brokers, we can design solutions that truly help these businesses manage risk, rather than simply adapt an international standard product.
The Challenge Ahead: A Fast-Changing World
The greatest challenge today is not just how toserve SMEs, but how to respond to a world where risks emerge faster than ever.
- Geopolitical instability: conflicts, sanctions, and energy crises that impact supply chains and valuations.
- Regulatory pressure: compliance issues, antitrust concerns, and cross-border complexities.
- Cyber exposure: data breaches and IT vulnerabilities that increasingly play a role in transactions.
- ESG requirements: buyers and investors scrutinizing environmental and social liabilities more closely.
All of these factors shape deals, and therefore shape insurance. Our role is to stay close to these developments and adapt policies in a way that gives clients confidence even in uncertain times.
Why This Blog
With this blog, we want to open the conversation. We will share:
- Our view on market trends and how they affect transactions.
- Examples of risks we see emerging in practice.
- Insights on how international standards can be adapted locally.
- Reflections from the journey of building Pantheon in a rapidly changing industry.
This will not be a place for polished press releases. It will be a space where we speak honestly about what we see, what works, and what we still need to improve.
Looking Forward
When we started Pantheon, our mission was simple: to bring W&I insurance closer to the needs of the German-speaking market. Three years in, that mission feels more relevant than ever.
The next years will bring more change than the last ten. We are looking forward to navigating these changes together — with our partners, our clients, and everyone who shares our interest in how insurance can support real businesses in a fast-moving world.
Stay tuned for many insights and shared views from our business partners.
