Christie's in the Insurance Business

Kaya Burgess of the London Times is reporting that Christie's will soon be overing insurance policies to collectrors.  Burgess reports that Christie's along with an insurance broker and underwriter will promote and sell insurance for homes, cars, fine and decorative art collections, and possessions in a single policy.  The main focus of the art protection will be for moving and storage insurance. Chrisite's is partnering with Chubb and Heath Lambert to design policies and specifically coverage for high value clients and customers.

Christie's is now involved in auctions, galleries, private sales, appraising, education, art storage, financing and now insurance. I probably missed a few areas as well.  You have to admit Christie's is very proactive in expanding their business model and leveraging their high value clientele.

Burgess reports

Adam Prideaux, an art insurance broker at Heath Lambert, said that private collectors and galleries were all having to shop around in the current climate to secure comprehensive cover for their collections.

He said: “Throughout 2009, since the economic downturn, there have been considerable problems for the art insurance market due to pressures on capacity against the exceptional prices of certain works.”

A spokeswoman for Christie’s said that cover would be tailored to the “sophisticated collector” hoping to avoid paying multiple premiums with different renewal dates for their cars, homes and art collections.

Christie’s Insurance Services will be added to the company’s existing valuation service and will offer risk management advice to help collectors safeguard the value of their collections as art prices diminish.

Global auction and private sales at Christie’s totalled £2.8 billion in 2008, and sales for the first half of 2009 reached £1.2 billion.

Large art fairs have this year been facing increasing insurance premiums and analysts at Heath Lambert have warned that fairs such as Maastricht and Basel will be in jeopardy if they cannot find affordable cover for their expensive collections.

The Christie’s policies will initially be available only to private clients and not to trade partners, and Christie’s will be approaching clients in London and those in Europe who are serviced from London.

To read the full London Times article, click HERE.