Our outlook on the industry

Continued Global Tax Insurance Growth – 3Q26 Market Update

by jackdulin

The following is a LinkedIn Article written by Justin Berutich, Executive Director and Head of Tax at Euclid Transactional.

The global tax insurance market maintained strong momentum during the third quarter of 2026. Euclid Transactional delivered an impressive third quarter, supported by year-over-year submission growth, a substantial increase in policies bound, accelerating uptake in APAC, and the continued strengthening of North American primary rates.

During 3Q26, Euclid received 588 global tax submissions, an increase of approximately 15% from the 512 submissions received in 3Q25 and a level that remained near the historic quarterly highs reached over the past year.  Activity was broad-based across the global platform:

  • North America generated 212 submissions, up approximately 11% from 191 in 3Q25. Renewable energy continued to represent a significant source of opportunities, alongside a diverse range of transactional and balance sheet tax opportunities.
  • EMEA and the UK generated 296 submissions, an increase of approximately 26% from the 234 submissions in the prior-year quarter.  The region’s continued growth reflects strong demand for solutions addressing tax uncertainty in cross-border transactions, corporate reorganizations, and other complex tax matters.
  • APAC recorded 80 submissions, compared to 87 in 3Q25.  While submission volume moderated slightly from the prior-year quarter, activity remained near historically high levels for the region and continued to reflect the market’s growing familiarity with tax insurance.

Execution was particularly strong during the quarter.  Globally, Euclid bound 82 tax insurance policies in 3Q26, an increase of approximately 37% over the 60 policies bound in 3Q25 and a third-quarter record for the platform.

North America bound 29 policies during the quarter.  Internationally, Euclid bound 38 policies in EMEA and the UK and 15 policies in APAC.  APAC’s performance was especially notable, demonstrating meaningful progress in converting the region’s growing pipeline of opportunities into completed transactions.

Pricing in North America also continued to strengthen, driven largely by an increase in primary tax rates on line, which have increased approximately 12% over 2025 primary rates.  This movement reflects a hardening transactional insurance market that is increasingly differentiating among opportunities based on their underlying risk characteristics.  Importantly, the rate environment is being driven by risk selection and pricing discipline rather than limitations on underwriting bandwidth.  Euclid continues to have capacity for appropriately structured opportunities supported by thorough diligence, but pricing increasingly reflects the technical merits and complexity of each opportunity.

The third quarter also represented a significant milestone in terms of deployed capacity.  Euclid bound nearly $1.6 billion of tax insurance policy limits during 3Q26, bringing cumulative limits placed since the launch of the product to more than $24 billion.  The volume of limits placed during the quarter reflects both the continued expansion of the tax insurance market and the increasing size and sophistication of the tax positions being insured.

To support this growth while maintaining responsive and technically rigorous execution, Euclid’s global tax team has expanded to 26 professionals across key markets worldwide.  Additional hires are confirmed to join us in the coming months, and the team continues to recruit for open positions.  This investment reflects Euclid’s commitment to scaling its global platform while preserving the technical expertise, commercial judgment, and execution capabilities required to underwrite increasingly complex tax positions.

As we enter the final quarter of 2026, the market remains active across each of our regions.  Near-record submission levels, record third-quarter execution, strengthening pricing, and the continued development of the APAC market demonstrate the increasingly important role that tax insurance plays in helping taxpayers and transaction parties manage uncertainty.  Euclid enters the fourth-quarter with a strong global pipeline and a growing team positioned to support continued market expansion.

Do these trends align with what you are seeing in the market? If you are evaluating a tax position or transaction, Euclid Transactional’s global tax team is ready to discuss how tax insurance can support your strategy in today’s evolving environment.