"With the acceleration of digital business models, amplified by COVID-19, this value could now increase much further, becoming a major blind-spot for firms not factoring intangible assets into their risk models", as LLOYD's representattives mentioned in a statement.
"Preparing for a new reality looks at the increasing value of intangible assets, and the role of risk managers and the insurance industry in protecting them".
COVID-19 has disrupted global supply chains and moved the world towards de-globalisation. It has changed working arrangements, businesses' ability to trade, and consumer behaviours. It has also created a new social contract between businesses and society and has accelerated underlying market trends such as the shift to remote workforces and digital transactions.
According to Trevor MAYNARD, head of Innovation at LLOYD's, "as an industry we need to recognise that the world has changed and adapt to how it looks now. COVID-19 has changed the risk landscape, exposing companies to new risks and encouraging companies to think about how they now operate. Whilst a range of insurance products already exist to help organisations manage their risks related to reputation, human capital, and intellectual property, it is important that at LLOYD's we work together with the market to innovate and create new products to help customers mitigate risks and protect themselves from future threats."
"As we move swiftly into the new reality, it's apparent that many businesses aren't adequately prepared for it. The key drivers of corporate value are completely different now to in the past, and this shift has only been amplified by COVID-19. Whilst physical assets are still a focus, recognition of what intangible assets are and how much they represent a firm's value may come as a hard awakening for some organisations. In order to remain resilient and competitive, organisations across all industries must be proactive in finding new ways to enhance their business practices to protect these assets, and this will require a new way of thinking and acting", said Paul MERREY, partner, KPMG.