October 3, 2011 | Tom Kirkpatrick, President
This September ACE Private Risk Services released the results of an impressive survey they conducted in partnership with Financial Dynamics. The “Survey on Passionate Investing by Wealthy Households” reveals insights into financially successful individuals and families and their investments in fine art, wine, jewelry, collectibles and other unique items. According to the survey, jewelry, fine art, wine, furniture/antiques, and silver/crystal/China are the top categories most often collected by the wealthy.
Sixty percent of wealthier households surveyed said they expect to increase the amount they spend on their collections over the next twelve months. Volatility in financial markets is one of the drivers for wealthy individuals and families to allocate a larger share of their investments in jewelry, fine art and collectibles. ACE’s research also revealed that a significant portion of wealthy collectors may not have adequate coverage or documentation for their valuables, exposing them to risks and potential losses.
Overall, the survey findings point to growing demand among high net worth individuals and household for a range of specialty contents services and coverage. The best way for serious collectors to minimize risks is to consult with cataloguing and appraisal experts like Collector Services for pre-loss documentation and valuation of high-value possessions. When the unthinkable happens and a work of fine art or a one-of-a-kind collectible is damaged, specialty contents experts are needed to determine the best course of action for repairing or replacing the item.
As the ACE survey shows, specialty contents services is a growth opportunity for carriers to expand their services and offerings to this segment of their customer base. Both traditional carriers and those that specialize in serving high net worth households have a lot to gain, especially as volatility in financial markets looks as though it’s not going away any time soon.
