Aon Plc, with more than 50,000 employees and a presence in 120 countries, has been able to establish an intellectual property (IP) security policy in excess of $ 100 million (approximately £ 77.6 million).
This intangible security insurance policy of over $ 100 million is assumed to be the largest in the history of insurance in the UK where Aon Plc is headquartered.
Intangible Property Insurance covers your business for the legal costs associated with the intrusion or theft of your intellectual property or when your business is sued for intellectual property theft. It is also called IP insurance.
An IP-rich company can borrow money from a lender while using its intellectual property as collateral. In this case, the value of the collateral was insured by a group of insurance markets that Markel Specialty specializes in.
According to Jim Gray, Markel Specialty's Executive Liability Insurance Officer, he believes that Markel Specialty is proud to have worked with Aon to create a unique solution and looks forward to building this new market with Aon in the future.
The lending transaction supported by intellectual property rights marks Aon's launch of its intangible capital market solution, which has the broker's own IP valuation tool.
Jim Young, CFO of Indigo ̵
“In a first transaction of its kind, Aon used an approach that formulated the value of our IP – making it a real capital asset – that enabled us to secure a significant amount of non-dilutive debt financing.
For HSCM Bermuda partner Edouard von Herberstein, this is an example of how insurance and insurance-related securities markets offer risk transfer solutions for intangible assets and add that they believe there are significant and growing opportunities and interest in this area.
"Intangible assets are the foundation of today's global economy, and Aon is renewing first-generation solutions to help companies both protect and maximize the value of these important assets," said Aon CEO Greg Case, who described the launch of the solution as a "Watercourses" that combine Aon's valuation technology with lenders and insurance markets.
Lewis Lee, CEO of Aon's IP Solutions, made it clear that they help innovative growth companies with a path to non-dilutive growth capital. "We are pleased to have them unlock this valuable asset," says Lee, "and are now positioned to facilitate a wide range of transactions."