High net worth clients can’t remember the last time they had their collections valued

• Half of high net worth (HNW) clients admit they don’t have their collections valued regularly
• Ecclesiastical is encouraging brokers to speak to their clients about the importance of having regular valuations

New research¹ commissioned by specialist insurer Ecclesiastical has revealed over a third (35%) of wealthy individuals admit they can’t remember the last time they had their art and collections valued.

Ecclesiastical is encouraging brokers to speak to their clients about the importance of regular valuations to ensure they have the right cover in place.

The survey of 250 HNW individuals who invest in art and collections found jewellery, watches, wines, books, and paintings are the most common collection types purchased during the past 12 months. Those with higher incomes and 35-44 year olds collected the most types of collections.

Purchases have increased on the previous year² with investments in jewellery, watches, wines, books, and trainers seeing the biggest increases³.

Having regular valuations to keep pace with value fluctuations is essential however half (48%) of those surveyed said they don’t have their art and collections valued regularly. And less are concerned about underinsurance as only half (50%) said they are concerned their art and collections are underinsured, down 12% on the previous year.

Ecclesiastical recommends HNW clients should review their sums insured annually. Under the Ecclesiastical Art and Private Client policy, clients with professional valuations less than three years old at the time of loss benefit from extended replacement cover, meaning the insurer will pay the value of the item at the time of the damage even if this is more than the value shown in the valuation.

Dr James Lindow, Underwriting Director for Art and Private Clients at Ecclesiastical, said: “Underinsurance has always been an issue in the high net worth sector. It is concerning to see over a third of high net worth individuals can’t remember the last time they had their art or collections valued. It is vital that brokers are speaking to their clients about the importance of having regular valuations. Clients should review their sums insured annually to ensure their possessions are insured correctly. Brokers play a vital role in ensuring their clients have the correct cover in place.”

¹ The research was commissioned by Ecclesiastical Insurance and conducted by BVA BDRC. Online interviews were carried out 14 - 25 May 2024 with 250 UK high net worth individuals with an income of at least £200,000 per annum or liquid assets of at least £1 million, and who have previously invested in at least one type of art / collection.

² The research was commissioned by Ecclesiastical Insurance and conducted by BVA BDRC. Fieldwork was conducted from 9th-27th July 2023 amongst 250 UK high net worth individuals with an income of at least £200,000 per annum or liquid assets of at least £1 million.

³ Investments made during the past 12 months: