Until fairly recently, the concept of insurance was primarily concerned with the risk transfer of physical assets. However the digital revolution, coupled with unprecedented events in the socio-economic environment over the last two years, has resulted in a significant shift towards the insurance of intangibles.
Go back fifty years and companies measured their value in tangible assets, such as their premises, stock and equipment. But for today’s businesses, the value of their intangible assets has soared and in many cases, overtaken the value of their physical resources; examples include brand, reputation, intellectual property and data. Predictions vary but certain reports state that intangible assets account for 90% of portfolios among Standard & Poor’s 500 companies.dummy This compares to just 17% in 1975.