WTW announced the introduction of a new financial product targeting clients intending to protect and leverage their intangible assets by considering transfer of the associated risks. To meet client demand, WTW is introducing Intangible Asset Protection (IAP), a first-of-its-kind product to fill a coverage gap in the market.
An intangible asset is one that is not physical in nature but one that can hold significant value, and which can be created, transferred, bought or sold. Typical examples of intangible assets include intellectual property rights such as patents, trademarks, and copyrights, in addition to databases, contracts, and licensing agreements. Non-public, proprietary information such as formulas, processes, R&D testing data, designs, algorithms, and computer programming code are also typically defined as intangible assets that carry exposures where a company might want to consider protecting and transferring the associated risks, which is where WTW’s new IAP product would apply.
This new IAP coverage closes a coverage gap in cyber, property, business interruption, and traditional intellectual property (IP) insurance. In listening to clients, WTW has created IAP to offer protection against IA-related exposures and their potential financial impacts. IAP is a tailored insurance offering that will initially cover non-public, proprietary, intangible assets from accidental or malicious insider actions resulting in disclosed, misappropriated, damaged, destroyed or lost IA.
Kim Cauthorn, Global IP Leader, WTW, commented, “We listen closely to the needs of our clients; intangible assets comprise the majority of enterprise value for many entities today, but most of those assets are uninsured. Accordingly, that calls for a product that closes a key insurance coverage gap.” Beginning with coverage capped at $10 million in year one, it will expand through an iterative approach to cover additional intangible asset categories and exposures at higher limits. “IAP is the first holistic, modular vehicle for clients to tailor coverage to fit their IA risk profile, with the potential to grow and evolve with their business needs.”
Aoife Woulfe, Head Intellectual Property, Tokio Marine Kiln (TMK), the carrier partnering on the solution, commented, “Tokio Marine Kiln has a longstanding reputation for intellectual property products that address changing clients’ needs, and we are proud to partner with WTW on this pioneering product. This product addresses critical coverage gaps in intangible risks and has the potential to become invaluable to clients by increasing the resilience of their businesses to unexpected events.”
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