Intangible Assets Impact Report
2022 Intangible Assets Financial Statement Impact Comparison Report
Pandemic-induced acceleration of digital assets adoption and "war" exclusion cyber insurance issues
Sponsored by Aon. Independently conducted by the Ponemon Institute.
Publication date: April 2022
Intangible assets versus tangible assets
Potential losses related to intangible asset values from evolving perils, such as cryptocurrency fraud, computer system disruptions and intellectual property misappropriation are significant. How do these compare to potential losses related to tangible asset values from traditional perils, such as fires and weather? And how are organizations using insurance to protect these different types of assets?
The protection gap
Our research indicates companies value intangible assets higher than tangible assets.1 But tangible assets, despite their lower value, are insured to a much greater extent - 58 percent compared to just 16.6 percent.
What can organizations do?
This research aims to provide a better understanding of the relative financial statement impact of digital asset and intellectual property losses, to help organizations make better decisions.
It provides insights which may help companies allocate resources and determine the optimal amount of risk transfer, including insurance, to mitigate the financial statement impact of intangible asset losses, and potentially increase the value of the underlying intangible assets.
Key findings from the report show:
- 84% of organizations use or intend to use cryptocurrency or NFTs in 2022
- The increased value of, and reliance upon, intangible assets, including information assets and intellectual property
- The differences between the valuation and Probable Maximum Loss of Property, Plant & Equipment, and intangible assets
- An increase in cyber ransomware business interruption losses relative to historical data breach privacy losses
- The benefits of insuring cyber assets and intellectual property, both financial protection from losses and leverage to increase value of organization
Read the report for the full, in-depth analysis:
About this research
The consolidated sampling frame is composed of 61,073 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. 2,671 respondents completed the survey, of which 290 were rejected for reliability issues. The final sample consisted of 2,381 surveys.
1 The average total value of PP&E is approximately $1,109 million for the companies represented in this research. The average total value of information assets is slightly higher at $1,213 million.
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