MISSION INTANGIBLE

M:I Products

MISSION:INTANGIBLE, the blog of the Intangible Asset Finance Society, offers critical comments on intangible asset, corporate reputation, and finance; supplemented by quantitative reputation metrics. Intangible assets include business processes, patents, trademarks; reputations for ethics and integrity; quality, safety, sustainability, security, and resilience; and comprise 70% of the average company's value. MISSION:INTANGIBLE is a registered trademark of the Intangible Asset Finance Society.

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Prompt Indemnification Benefit of Parametric Reputation Insurances

C. HUYGENS - Wednesday, October 11, 2017
Parametric insurances--available for #reputation, weather, and earthquake #risk--pay on claims quickly. Objective verifiable parameters are the reason.

Mexico's finance ministry said that the country will receive a payout of $150 million from a catastrophe bond after the Sep. 7 earthquake met parameters for magnitude, location and depth.

Read more in Business Insurance.

More on parametric reputation insurances.

Trump and Timing the Measurement of Reputation Loss

C. HUYGENS - Sunday, September 24, 2017
The loss and stabilization of President Trump's reputation mirrored the pattern seen with event-driven corporate reputation losses, as predicted by Steel City Re on May 19.

Reputation value loss is indemnifiable through Steel City Re's reputation assurance solutions. Determination of the magnitude of the loss is made 20 weeks after recognition of all three triggers of the policy. This time window for discovery of the actual going-forward magnitude of reputation value loss was memorialized in Steel City Re's processes after the empirical study of of tens of thousands of  reputational loss events. The bottom line, is that at around 20 weeks after an event is recognized by stakeholders,  the resuilting corporate reputation stabilizes at its new level. This level becomes the new corporate reputation baseline until a new adverse event or favorably surprise shocks the market and materially resets the reputational value again.

On the basis of this empirical model, Steel City Re predicted in the Financial Times on 19 May that President Donald Trump's deteriorating reputation would stabilize on or about 18 September 2017. Reports from NPR and Rasmussen Reports published on 22 and 23 September confirm this prediction.

From NPR: President Trump's poll slide appears to have stabilized.

From Rasmussen Reports:  The Rasmussen Reports daily Presidential Tracking Poll for Friday shows that 43% of Likely U.S. Voters approve of President Trump’s job performance. Fifty-five percent (55%) disapprove.

The latest figures include 27% who Strongly Approve of the way the president is performing and 44% who Strongly Disapprove. This gives him a Presidential Approval Index rating of -17. (see trends).

The Steel City Re model suggests that the current measure of reputational value will be stable until a shock such as a major event on the Korean peninsula or revelations from Robert Mueller’s sprawling special-counsel investigation resets stakeholder expectations once again.

Artful Dodger When Reputation in the Cross Hairs

C. HUYGENS - Thursday, September 14, 2017
Even when dutiful, loyal and competent, the personal #reputations of senior executives and board members stand in the crosshairs.

“CEOs need new tools like reputation assurance products to provide third party warranties and demonstrate good governance in a way that creates an easy to understand, and completely credible alternative narrative when stakeholder dissatisfaction rears its head.”

Read more in Industry Week.

Challenge of a Different Color

C. HUYGENS - Tuesday, August 29, 2017
Products like D&O insurance protect from from legal liability but they hold no sway in the court of public opinion.

“CEOs now need to avail themselves of new tools that defend against these new types of threats – products that provide third party warranties and demonstrate good governance in a way that creates an easy to understand, and completely credible alternative narrative when bad or false news strikes. Companies and their executives need credibility to deter attacks and financial protection when attacks do occur.”

Read more in Industry Today.

Financial Risk Body Armor Needed

C. HUYGENS - Sunday, August 27, 2017
Repeated blows to reputation will eventually cause the financial equivalent of dementia. For qualified companies and their leadership, reputation risk solutions can be life saving.

Read more in Risk & Insurance.

No Country for Old (Insurance) Captives

C. HUYGENS - Friday, August 25, 2017
Attention captives bearing reputation risk, review programs…implement immediate changes. Thus opined the court: Although

“…organized and regulated as an insurance company, paid the claims filed against it, and met the minimal capitalization requirements (but it)… was not operated like an insurance company, it issued policies with unclear and contradictory terms, and it charged wholly unreasonable premiums….(B)ased on the facts the court focused on, it will be vital for all captives to undergo a thorough review of their program, and to implement immediate changes”

Read more in Business Insurance.

Benefits of Better Analysis of Reputational Losses

C. HUYGENS - Thursday, August 10, 2017
“[Steel City Re's] product is innovative ... #reputational #risk can now be measured, quantified, insured, self-insured through a captive, monitored and proactively mitigated for publicly trade companies,” said John Kelly, at the Vermont Captive Insurance Association (VCIA).

Read more in the Intelligent Insurer.

Speaking Volumes When D&O Defenses are Muted

C. HUYGENS - Monday, May 22, 2017
A 3rd party’s signal is what really great CEOs need to protect their #reputation … when all other strategies fall silent.

There is a range of alternative defensive strategies — none of which are particularly promising. The status quo, silence, is a path to disaster today.

Read more in Risk & Insurance

For Personal Protection, CEOs Need Reputation Assurance

C. HUYGENS - Wednesday, May 17, 2017
Why the expressive power of #Reputation Assurance is imperative: When activists attack, “you don’t ever hear the management or board side because they’re the defence, and the defence doesn’t talk.”

Jeff Ubben, chief executive of ValueAct, an activist fund that keeps its pressure behind the scenes, said the recent ouster of Mr Kleinfeld was an example of companies being “bullied” by Elliott. Mr Kleinfeld was forced out not because of Elliott’s criticisms of his record at Arconic but because of what his board called “poor judgment” in sending a letter to an official at Elliott that the hedge fund said “read as a threat to intimidate or extort”.

“It’s prosecutorial in nature,” said Mr Ubben, speaking on a panel at the Milken Conference in Los Angeles earlier this month. “You hear the Elliott side, but you don’t ever hear the management or board side because they’re the defence, and the defence doesn’t talk . . . And then when you do strike back, you’re fired.”


Read more in the Financial Times.

Why Boards Today Need Reputation Insurances

C. HUYGENS - Tuesday, May 16, 2017
Reputation insurance is an important part of any company’s risk management strategy, according to Dr Nir Kossovsky of Steel City Re

Directors are learning the hard way that they may personally be more vulnerable than the well-known corporate brands they oversee. Directors are being targeted and replaced, with 16 percent of board members at companies we studied having been replaced after reputational events.

On average, a corporate board member makes about $250,000 per year to sit on a board and usually serves on more than one. If a reputational attack leads to that board member stepping down—and potentially not being asked to serve on additional boards—it could represent significant lost personal income
.

Read more from Captive Insurance Times

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