An insurance product to address reputational risk could soon be a reality, as Kasper Ulf Nielsen, chief strategy officer for The RepTrak Company, explains to Intelligent Insurer.
Today about 85 percent of a company’s market value is made up of intangible assets. One of these is reputation. A reputation-damaging event can be catastrophic for a company’s value, and there is clearly an appetite for an insurance product to address this risk.
“The credit rating agencies are including reputation in their assessment of companies, but today it is subjective.”
However, the insurance industry has struggled to bring a product to market, not least because of the challenge of measuring reputation and agreeing on a trigger that would prompt the insurance policy to pay out.
RepTrak, Insurance, Reinsurance, Risk Management, Kasper Ulf Nielsen, North America