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From cyber risk to supply chain disruption and reputational damage, a wide range of intangible risks are posing a threat to businesses in today’s inter-connected, technology-driven world.
But the commercial insurance sector has not kept pace with the changes, and in many cases is still unable to provide adequate coverage for clients’ growing roster of intangible risks, says risk management association Airmic.
“We’ve been talking for years about the need for insurance to cover risks to intangible assets yet, despite our best efforts, we’ve made very little progress. In some areas, like business interruption, there’s a perception that things have actually gone backwards,” said CEO John Ludlow at Airmic’s annual conference.
Companies today are increasingly built on a foundation of intangibles – a recent study suggested that 82% of Fortune 500 companies’ value now resides in intangible assets.
The insurance industry risks becoming obsolete to its buyers if it continues to trail behind in offering solutions, according to Ludlow.
“We know that the commercial insurance…
