2024 Intangible versus Tangible Risks Comparison Report

2024 Intangible versus Tangible Risks Comparison Report Image
De-risking AI, IP, and Cyber

2024 Intangible Versus Tangible Risks Comparison Report

Download Paper

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

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

Potential losses related to intangible asset values from evolving perils such as generative artificial intelligence (AI), cyber security, and intellectual property (IP) misappropriation are already significant. As we journey through a highly complex multi-decade AI transformation – where the upside rewards and downside perils are uncertain – the velocity of these risks is set to increase.

Despite this, a significant protection gap persists for intangible assets, with only 19 percent insured according to our research. Tangible assets, despite their lower relative value, are insured to a level three times greater, at 60 percent.

2024 Intangible versus Tangible Risks Comparison Report Diagram

44%

Only 44 percent of respondents said they are prepared for a cyber or IP ‘Black Swan’ event.

Quote icon

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 organizations 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) compared to certain intangible assets (Information assets and IP)
  • Quantification of potential losses from tangible compared to intangible assets
  • Insurance protection of tangible compared to intangible assets

Key findings from the report show:

  • The likelihood of a loss is higher for intangible assets than for tangible assets.

  • The average total value of intangible assets is nearly 14% higher than that of tangible assets.

  • The average Probable Maximum Loss for intangible assets is almost 37% higher than that of tangible assets.

  • 67% of organizations use or intend to use AI products or services.

  • 56% of organizations had a material or significantly disruptive security exploit or data breach one or more times in the past 24 months.

  • While most organizations do not have specific IP insurance policies, nearly two-thirds of organizations 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.

2024 Intangible versus Tangible Risks Comparison Report Image

Let’s Connect

Talk to Our Team

Contact our team today to learn more about how we can help your business.

Contact Us

Aon's Better Being Podcast

Our Better Being podcast series, hosted by Aon Chief Wellbeing Officer Rachel Fellowes, explores wellbeing strategies and resilience. This season we cover human sustainability, kindness in the workplace, how to measure wellbeing, managing grief and more.

Aon Insights Series Asia

Expert Views on Today's Risk Capital and Human Capital Issues

Aon Insights Series Pacific

Expert Views on Today's Risk Capital and Human Capital Issues

Aon Insights Series UK

Expert Views on Today's Risk Capital and Human Capital Issues

Construction and Infrastructure

The construction industry is under pressure from interconnected risks and notable macroeconomic developments. Learn how your organization can benefit from construction insurance and risk management.

Cyber Labs

Stay in the loop on today's most pressing cyber security matters.

Cyber Resilience

Our Cyber Resilience collection gives you access to Aon’s latest insights on the evolving landscape of cyber threats and risk mitigation measures. Reach out to our experts to discuss how to make the right decisions to strengthen your organization’s cyber resilience.

Employee Wellbeing

Our Employee Wellbeing collection gives you access to the latest insights from Aon's human capital team. You can also reach out to the team at any time for assistance with your employee wellbeing needs.

Environmental, Social and Governance Insights

Explore Aon's latest environmental social and governance (ESG) insights.

Q4 2023 Global Insurance Market Insights

Our Global Insurance Market Insights highlight insurance market trends across pricing, capacity, underwriting, limits, deductibles and coverages.

Regional Results

How do the top risks on business leaders’ minds differ by region and how can these risks be mitigated? Explore the regional results to learn more.

Human Capital Analytics

Our Human Capital Analytics collection gives you access to the latest insights from Aon's human capital team. Contact us to learn how Aon’s analytics capabilities helps organizations make better workforce decisions.

Insights for HR

Explore our hand-picked insights for human resources professionals.

Workforce

Our Workforce Collection provides access to the latest insights from Aon’s Human Capital team on topics ranging from health and benefits, retirement and talent practices. You can reach out to our team at any time to learn how we can help address emerging workforce challenges.

Mergers and Acquisitions

Our Mergers and Acquisitions (M&A) collection gives you access to the latest insights from Aon's thought leaders to help dealmakers make better decisions. Explore our latest insights and reach out to the team at any time for assistance with transaction challenges and opportunities.

Navigating Volatility

How do businesses navigate their way through new forms of volatility and make decisions that protect and grow their organizations?

Parametric Insurance

Our Parametric Insurance Collection provides ways your organization can benefit from this simple, straightforward and fast-paying risk transfer solution. Reach out to learn how we can help you make better decisions to manage your catastrophe exposures and near-term volatility.

Pay Transparency and Equity

Our Pay Transparency and Equity collection gives you access to the latest insights from Aon's human capital team on topics ranging from pay equity to diversity, equity and inclusion. Contact us to learn how we can help your organization address these issues.

Property Risk Management

Forecasters are predicting an extremely active 2024 Atlantic hurricane season. Take measures to build resilience to mitigate risk for hurricane-prone properties.

Technology

Our Technology Collection provides access to the latest insights from Aon's thought leaders on navigating the evolving risks and opportunities of technology. Reach out to the team to learn how we can help you use technology to make better decisions for the future.

Top 10 Global Risks

Trade, technology, weather and workforce stability are the central forces in today’s risk landscape.

Trade

Our Trade Collection gives you access to the latest insights from Aon's thought leaders on navigating the evolving risks and opportunities for international business. Reach out to our team to understand how to make better decisions around macro trends and why they matter to businesses.

Weather

With a changing climate, organizations in all sectors will need to protect their people and physical assets, reduce their carbon footprint, and invest in new solutions to thrive. Our Weather Collection provides you with critical insights to be prepared.

Workforce Resilience

Our Workforce Resilience collection gives you access to the latest insights from Aon's Human Capital team. You can reach out to the team at any time for questions about how we can assess gaps and help build a more resilience workforce.