Intangible asset value higher than tangible but protection gap persists
A new report from Aon finds that only 19% of intangible asset value is insured among nearly 2,500 organisations worldwide, compared to 60% for tangible assets, as the protection gap between the two persists.
The Aon-sponsored Intangible Versus Tangible Risk Comparison Report 2024 was conducted by the Ponemon Institute. It sampled those involved in cyber risk management and enterprise risk management at 2,462 organisations in North America, Europe, the Middle East, Africa, Asia Pacific and Latin America.
The report aims to help organisations better understand the evolving threats of artificial intelligence (AI), cyber and intellectual property (IP), and highlights the role insurance can play in protecting intangible assets.
The report concludes that the likelihood of a loss is higher for intangible assets than tangible assets.
Meanwhile, the average total value of intangible assets is nearly 14% higher than tangible assets. The average probable maximum loss for intangible assets is almost 37% higher.
The research also finds that 67% of organisations use or intend to use AI products or services.
Some 56% of respondents had a material or significantly disruptive security exploit or data breach at least once in the past 24 months. And while most organisations do not have specific IP insurance policies, nearly two-thirds say they have an interest in purchasing such cover.
