The average maximum probable loss for intangible assets, such as information assets and intellectual property, was 19% higher, at $1.03 billion, compared to tangible assets like property, plant, and equipment, which registered losses of $867 million, according to the report Comparative Risk Report 2024: Reducing AI, IP, and Cyber Risk by AON.
The report, based on responses from 528 companies across Latin America, emphasizes the risks associated with Generative Artificial Intelligence (GenAI).
Generative AI, which creates materials such as images, music, and text, brings about significant risks, including security and privacy breaches, and intellectual property infringement, one of the major sources of value creation in the corporate world. Cyber incidents are also identified as major sources of intangible asset losses for organizations.
The report particularly highlights the role that insurance can play in protecting intangible assets, helping companies in better allocating resources and protecting against tangible and intangible threats.
"Companies must be aware of the opportunities presented by technological evolution, without losing sight of the threat perspective. Currently, cyberattacks and data breaches are the second largest business risk in Mexico. Organizations need to proactively protect themselves through insurance policies, continuous diagnostics, protocols, and ongoing training for employees," commented Maria Fernanda González, Head of Financial Lines for Mexico at Aon.
The study reveals that the average total investment value in tangible assets is $1.087 billion, while the value of intangible assets is $1.223 billion. However, only 19% of intangible assets are covered by insurance, compared to nearly three times more tangible assets, at 57%.
"In its most basic form, insurance is a financial instrument—a way to manage the cost of future risk. Our research shows that intangible assets are valuable because they generate competitive advantages, are pillars of digital transformation, and are subject to significant cyberattacks. The challenge is to offer our clients innovative solutions that address their main priorities and provide all our global expertise. It's no longer enough to have cyber insurance or insurance that protects intellectual property; with the proliferation of intangible risks, we are expanding the scope of insurability and will continue to be there with our clients, advising them to make the best decisions," stated Edwin Sabogal Rojas, Cyber Manager for Latin America at Aon.
