Rise Of Intangible Economy Means Big Changes To Risk Landscape
Friday, April 16th, 2021 Risk ManagementIntangible assets account for nearly 70% of total business value – about $11 trillion – for the world’s 50 largest corporations, according to a new report from international insurance broker Howden.
The rise of the intangible economy means big changes for the risk landscape, Howden said.
‘The shift towards an asset-light economy is transformative; intangible – and largely uninsured – exposures are becoming more substantive,’ said David Flandro, managing director of HX Analytics.
‘The rise of technology companies and peer-to-peer disruptors is indicative of an ability to create value from intangibles. In fact, the bulk of corporate value today is associated with intellectual property, brand and reputation ahead of property, plant and equipment. The trend towards intangible value is accelerating.’
