2024 Intangible versus Tangible Risks Comparison Report EMEA Edition

2024 Intangible versus Tangible Risks Comparison Report Image

De-risking AI, IP, and Cyber

2024 Intangible versus Tangible Risks Comparison Report EMEA Edition

Sponsored by Aon. Independently conducted by the Ponemon Institute. Published July 2024.

The 2024 Intangible versus Tangible Risks Comparison Report is based on insights from 2,462 small, medium and large organisations across a broad range of industries throughout the world.

Cyber risk and generative artificial intelligence (Gen AI) top the list of C-suite concerns, and the likelihood of an intangible asset cyber event occurring is reported to be three times (3X) more likely than an attack on property, plant, and equipment (PP&E).

Yet, organisations report that insurance is in place to cover only 17 percent of information assets compared to 60 percent for PP&E. This underappreciation of the value of cyber insurance contributes to an insurance versus cyber risk gap, exposing many organisations to unnecessary financial exposures. This risk will grow as Gen AI lowers the barrier to entry for cyber criminals and heightens the impact of cyber attacks.

2024-intangible-versus-tangible-risks-comparison-report-emea-diagram

49%

Only 49 percent of respondents said they were prepared for a cyber or Intellectual Property ‘Black Swan’ event.

The industry traditionally reflects history as a way to predict the future. It’s not enough in the context of cyber or generative AI. At any point in time, there are these shocks... but over time, can we understand and model this risk? Yes.

Greg Case

Chief Executive Officer, Aon

What is the report about?

This research aims to provide a better understanding of the evolving threats of generative AI, cyber and IP. It highlights the role insurance can play in protecting intangible assets to help organisations make better decisions regarding allocation of their finite resources to protect against tangible and intangible perils.

In the report, we compare the relative:

Value of certain tangible (Property, Plant & Equipment) to certain intangible assets (Information assets and IP)
Quantification of potential losses from tangible to intangible assets.
Insurance protection of tangible to intangible assets.

Reimagined Operational Resilience in the Technology, Media and Communications Industry Image — Report

2024 Intangible versus Tangible Risks Comparison Report EMEA Edition

The current risk to intangible assets is more magnified than ever. However, an imbalance exists between the risk exposure and the transfer of that risk. The insurance market needs to do everything possible to close this gap.

David Molony

Head of Cyber Solutions, Europe, the Middle East and Africa

The likelihood of a loss is higher for intangible assets than for tangible assets.
The average total value of intangible assets is 2.45% higher than that of tangible assets.
The average Probable Maximum Loss for intangible assets is almost 43% higher than that of tangible assets.
69% of organisations use or intend to use AI products or services.
54% of organisations had a material or significantly disruptive security exploit or data breach one or more times in the past 24 months.
While most organisations do not have specific IP insurance policies, 68% of organisations say they have an interest in purchasing them.

About this research

The consolidated sampling frame is composed of 63,112 individuals located in North America, Europe, the Middle East, Africa, Asia Pacific, Japan and Latin America. Respondents are involved in their company’s cyber risk management as well as enterprise risk management activities. 2,790 respondents completed the survey, of which 327 were rejected for reliability issues. The final sample consisted of 2,462 surveys, of which EMEA survey respondents totalled to 596.