Reputation, human capital, intellectual property and other “intangible” assets are becoming the dominant driver of value in most industries and are a major blind spot for firms not factoring this into their risk models, Lloyd’s says.

In a report prepared in collaboration with KPMG, Lloyd’s says its is developing products to help organisations mitigate their exposure.

“The key drivers of corporate value are completely different now to in the past and this shift has only been amplified by COVID-19,” KPMG Partner Paul Merrey said. “As we move swiftly into the new reality, it’s apparent that many businesses aren’t adequately prepared for it.”

The report outlines a range of products available in the market responding to the risks posed to intangible assets, which are estimated to account for as much as 85% of the total business value across industries.

The report also highlights the vital role the insurance community has to play in helping organisations manage these challenges to protect their assets.

Lloyd‘s Head of Innovation Trevor Maynard says COVID-19 has exposed companies to new risks and encouraged them to think about how they now operate.

“As an industry we need to recognise that the world has changed and adapt to how it looks now,” Mr Maynard said. “It is important that at Lloyd’s we work together with the market to innovate and create new products to help customers mitigate risks and protect themselves from future threats.”

While physical assets are still a focus, recognition of what intangible assets are and how much they represent a firm’s value may “come as a hard awakening for some organisations”.