Understanding the Strategy, Valuation and Risk of Intangible Assets
Financial Statement Impact Comparison Study & Report conducted by
Ponemon Institute LLC, Sponsored by Aon
Over the past several years, assets driving business capital have shifted from tangible to intangible1; however, the approach to insurance protection has not kept up.2 It is imperative that C-suite decision makers act to manage their assets appropriately.
Despite the greater average potential loss to information assets of $1.08 billion compared with $795 million in property, plant and equipment (PP&E), the latter has much higher insurance coverage (60% versus 16%). Although few companies have a trade secret theft insurance policy and/or a patent liability policy, by having a greater understanding of the value of their intangible assets compared to their tangible assets, organizations will adjust their allocation of resources accordingly to insure what’s most valuable to them – their intangible assets.
Since 2015, Aon and Ponemon have conducted a global study on the relative insurance protection of tangible versus intangible assets. Download the full report: 2019 Intangible Assets Financial Statement Impact Comparison Report
Aon’s Intellectual Property Solutions sponsored Ponemon Institute Study and Report: “2019 Intangible Assets Financial Statement Impact Comparison Report”
1Capitalism without Capital The Rise of the Intangible Economy, Jonathan Haskel & Stian Westlake (Princeton University Press, 2018)
2“If you looked at a classic S&P 500 company 40 years ago, 83% of their balance sheet would have been tangible assets. Today, it’s only 12%. Insurance is pretty good at insuring the tangible, but quite challenged at finding the appropriate covers for the intangible.” Lloyd’s of London CEO, John Neal, March, 2019.
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