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Two of the biggest names in insurance have teamed up as Tokio Marine Kiln (TMK) today announced the establishment of a $100 million intellectual property facility with brokerage giant Aon and a host of other Lloyd’s syndicates.
Described as a “first for IP in the London market,” the facility aims to provide greater capacity for large IP risks and is set to offer cover for businesses of all sizes – whether they are SMEs or large corporates. It will be initially available across the UK, Europe and the US and, according to Ian Lewis, IP underwriter at TMK, is likely to be one of several initiatives from the firm this year in an attempt to address rising global demand for the cover.
“Growing recognition that IP is not only an important asset but, for many businesses, their most valuable one, is driving demand for IP protection,” he said. “The market has reached a turning point, with strong demand being further propelled by recent high-profile court settlements, companies being acquired solely for their IP and impending legislative changes to IP enforcement.
“As the world changes, so our clients’ risks evolve. It is critically important that insurers develop products which mitigate the new risks our clients are facing.”
Aon CEO of IP Solutions Lewis Lee shared that viewpoint, noting that it is “critical” to manage the value creation opportunity of IP and the downside risk mitigation. However, he stated “capacity restraints, coverage limitations, high retention and co-insurance requirements” mean clients often struggle to find suitable protection.
“This latest offering in our suite of integrated IP capabilities brings a holistic approach to IP,” he said. “It utilises patent litigation analytics, predictive modelling techniques, risk mitigation and innovative distribution strategies to help clients build and protect a valuable IP portfolio while minimising risks.”
