Reputational risks offer a growth area for insurers as companies face heightened repercussions and improved products are developed, a report from Lloyd’s and KPMG says.

The report says the reputational risk landscape has changed significantly over the past few decades, amid the switch towards digitising operations, and any problems or issues are being amplified through channels such as social media.

“Insurers have an opportunity to become true end-to-end reputational risk management partners, moving well beyond traditional risk indemnity and the usual crisis management support,” Lloyd’s Head of Innovation Trevor Maynard says.

“There are huge growth opportunities for insurers and brokers to help organisations transform their reputation management.”

KPMG UK Head of Commercial and Specialty Insurance Paul Merrey says the risks are becoming increasingly complex and new products will need to be more nuanced as a “one size fits all” approach won’t work.

“Just as cyber insurance has become a core offering to reflect a changed risk landscape, we anticipate that reputation products will become a staple within the insurance industry in the next five years,” he says.

The report released last week, Safeguarding Reputation, estimates corporate brand and reputation accounts for 35.3% of the market capitalisation of the world’s 15 leading equity market indices.

The contribution is highest in areas such as technology, telecommunications, healthcare and consumer goods and services, followed by financials, oil and gas, basic materials, industrials and utilities.

Currently available reputation risk insurance products include those that focus on the cost of a crisis response, or lost revenues and profits, as well as those also offering an element of support and assistance.

“Reputational risk insurance solutions are still relatively new in the market, but a range of market players have recent made significant strides in enhancing their existing offering,” the report says.