Law360 is providing free access to its coronavirus coverage to make sure all members of the legal community have accurate information in this time of uncertainty and change. Use the form below to sign up for any of our weekly newsletters. Signing up for any of our section newsletters will opt you in to the weekly Coronavirus briefing.
Sign up for our Insurance UK newsletter
You must correct or enter the following before you can sign up:
Thank You!
Law360, London (August 7, 2020, 4:11 PM BST) -- Lloyd's of London has urged businesses to be innovative in the face of a "new risk landscape" triggered by COVID-19, in which companies are faced with potential problems that could damage their reputation or put important information at risk of being compromised.
The specialty insurance market has conducted a study with auditing company KPMG that examined the increasing value of intangible assets — aspects of a business such as its reputation, intellectual property and human capital.
"It is important that at Lloyd's we work together with the market to innovate and create new products to help customers mitigate risks," Trevor Maynard, head of innovation at the markets, said on Thursday.
The report said restrictions for public health purposes imposed during the coronavirus crisis have meant that most workers and business data are "scattered across thousands of living rooms … and bedrooms while expensive office buildings are kept empty."
This makes it more difficult for businesses to manage intellectual property, Lloyd's warned, adding that some traditional ways of working may need to be rethought.
"The key drivers of corporate value are completely different now to in the past, and this shift has only been amplified by COVID-19," Paul Merrey, partner at KPMG, said.
Questions about intangible assets, such as how much they represent a firm's value, could "come as a hard awakening" for some businesses, Merrey said.
The report also warned that companies are more likely to make mistakes that damage their reputation, which can affect how their businesses character is perceived.
Events organized by activists are "pushing the corporate environment," the study also said: the recent Black Lives Matter protests have demonstrated "the need for businesses to embrace the changing social norms."
The Lloyd's and KPMG report comes at a time when the insurance, banking and other sectors are counting the cost of COVID-19 on their operations.
Governments around the world have launched programs to help businesses cope in response to the pandemic. Regulators have also worked with industry to tackle concerns. The European Insurance and Occupational Pensions Authority published a paper in July outlining ways organizations can work together.
--Additional reporting by Martin Croucher. Editing by Ed Harris.
For a reprint of this article, please contact reprints@law360.com.
