IP risk management goes mainstream
22nd February 2019 |
IP insurance has long been left in the cold; however, as some of the industry’s big names move into space, we are likely to see a change in the status quo. IAM recently reviewed the current state of play.
The EU Intellectual Property Office published in 2018 an overview of IP Litigation Insurance Landscape, highlighting a broad range of views. There are also real signs in Singapore, Japan and China that there is a demand that must be met. Everyone agrees, however, that progress over the last 30 years has been underwhelming.
Aistemos CEO Nigel Swycher was interviewed for the IAM review and agrees with many of the findings:
- Due diligence is a challenge. For as long as underwriting IP risk requires a manually curated due diligence report, there will always be a bottleneck
- Until volumes increase, one big claim wipes out all the profit
- NPE litigation was what everyone wanted but few wanted to provide.
All this looks set to change with an increasing number of insurance companies being willing to underwrite the risk. As Nigel comments: “better data means better underwriting” and its not only the accessibility of more data, but also the ability of AI to find patterns that were previously not detectable. “We are delighted that our analytics software, Cipher, is now used to underwrite many of the policies in Lloyds”. The great news is that this is the consensus, with insightful observations from AON and IPwe. While this did not eliminate the need for human decision-making, it will definitely help.
This is a hot topic and you can expect a regular flow of announcements. As advertised in the CFC Broker Summit, in May – IP, the next Cyber?