The growing intangibility of business value: expanding the boundaries of insurability

Today, the world's biggest companies derive their economic value mostly from intangible assets, not from the production of physical assets. With the transformation of the corporate sector, demand for insurance solutions is moving from asset covers to protection for business risks that were previously uninsurable like earnings and cash flow losses.

Key takeaways

  • Digital transformation has given rise to new business models which derive value mostly from intangible assets like intellectual property, networks, platforms, data and customer relationships.

  • Today intangible assets account for more than 80% of the enterprise value of S&P 500 companies.

  • Demand for insurance solutions is also moving from asset covers to protection for business risks like earnings and cash flow losses.

  • Increasing availability of data, the evolution of analytical capabilities and innovative trigger solutions, allow to insure risks which were previously uninsurable.

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Economic insights The growing intangibility of business value: expanding the boundaries of insurability

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