Intellectual property (IP) remains underinsured despite the huge costs that can result if assets are stolen or destroyed, according to an Aon-backed global report.

The average potential loss to certain intangible assets is about $US1.08 billion ($1.54 billion), yet just 16% of these assets have coverage.

In contrast, property, plant and equipment has 60% protection but the average loss is lower at $US795 million ($1.14 billion).

“One of our key findings is that threats to a company’s intangible assets are not in proper balance with that company’s insurance protection,” Aon CEO of IP Solutions Lewis Lee said. “Understanding how to properly value, exploit and insure intangible assets is exponentially heightened in the digital era. Intangible assets are a board-level issue.”

About 28% of executives surveyed for the report say their companies have experienced a “material IP event” in the past two years, while more than one-third believe no disclosure of a material loss to information assets is required.

The Intangible Assets Financial Statement Impact Comparison Report questioned more than 2300 executives worldwide.