Travel insurance customers with Pre-Existing Medical Conditions (PEMCs)
New regulation process to come into effect on 26 April 2021.
Ensuring you have your clients covered in a fluctuating jewellery market.
It is important for your clients to know that not having an up to date valuation can mean that due to significant price fluctuations in the past few years, their jewellery insurance values could be too low… and in some cases too high!
An up to date valuation can help your client avoid financial loss in the case of a claim, and can help them avoid having to either make up any cost difference or accept a lesser quality item. It’s also a great chance for the jewellery to be checked over for potential loose settings or necessary repair work. In many cases it also is an opportunity to provide a far better description and more accurate details of the item than might be available from a purchase receipt or older valuation.
In many cases items are insured at their purchase price – for example an item such as an engagement ring that may have been purchased many years ago. Clients often do not keep on top of how the market and exchange rate fluctuations impact the price of jewellery and are often unpleasantly surprised to find out that the cost of the ring is significantly more now for a like-for-like ring with equivalent quality gemstones. In addition to the sentimental impact they now face being out of pocket too.
Diamonds have seen big fluctuations in price. Pay particular note if they were previously valued between 2015 and 2018 as they are very likely to be undervalued. Since then, the market has picked up and prices have increased especially in the larger carat weights that most of your clients will likely own. If the valuation is old, then they may be even more undervalued as one of the biggest hikes was seen between 2005 and 2010.
Gold price has seen an overall increase and despite some small fluctuations, the general trend over the past 20 years has been up. Depending on when the previous valuation was done, the price of the jewellery item may have significantly increased.
Blue sapphires remain by far the best seller in the coloured gemstone market, with the finer grade sapphires such as Burmese and Ceylon continuing to increase dramatically in value. Only last year this value increase was dramatic. At big auctions, the hammer price for natural unheated sapphires kept overtaking their auction estimates by 3-5 times!
Pieces from luxury jewellers such as Cartier, Bulgari, Chopard, Boodles, and Tiffany & Co. for example increase on a yearly basis. It is an area in which a client’s current insurance replacement figure can quite quickly become insufficient. On the flip side, some branded pieces are discontinued and it is an important conversation to have with the client on whether they would like to be insured for an equivalent piece from the second hand market or for a completely different piece from a current collection that is similar in quality.
Vintage watches is still a very strong area of the market and for truly unique and special vintage pieces, the prices have grown exponentially.
Find out more about Gurr Johns, one of our preferred suppliers.
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