Zilkens' News Blog

Zilkens' News Blog 43 2024

A few days ago, we were asked by an insurer whether we could name the premium volume for art insurance in Germany. The answer is difficult, because the German Insurance Association only roughly records about 50% of the market premiums by product. In addition to art insurance, the contributions are hidden in transport insurance, home owners insurance or industrial property insurance. A conversation with one of the leading insurers in the field only provided some clarity in that the figures we published for the 1st Cologne Art Insurance Discussion 2012 (approx. 135 million EUR total volume in Germany) may not have grown despite higher valuations in the art market. The growth in the companies is more likely to come from the increased interest in vintage cars or specie insurance, which also includes cash in transit insurance.

In Budapest, 200 representatives of the industry met at IFASIC (International Fine Art and Specie Insurance Conference). There were only a few from the German-speaking area, but many more from the English-speaking regions. In London, it was said beforehand that this was more for the ‘young’ – but a good networking platform with commendable training elements. From a German point of view, it is interesting that ERGO wants to get more involved and with more capacity in art insurance business. It had become rather tight in the last three years. More movement is also expected at Chubb. Mike Southgate, who previously worked for Chubb at Lloyd's, is now supposed to make life easier for European underwriters. So the competition continues. QBE would also like to become more involved in the German market for transport and art exhibition insurance.

Two weeks ago, at the Kunst im Kontext podium discussion at the Ludwig Museum in Cologne, we were still philosophising about whether Art Basel-Paris could challenge London's position as Europe's leading art trade centre. It seems that it can, because in addition to Art Basel, there were about ten other contemporary art fairs in Paris, covering a wide range of styles and regions (with a separate fair for African art). And, as can be read in Stefan Kobel's article, art lovers came to Paris from all over the world. After the First World War, Paris was the centre of contemporary art in Europe. After 100 years, it could soon be that way again, thanks in part to a Swiss trade fair company.

Reinsurers and primary insurers have been gathering in Baden-Baden since yesterday to negotiate premiums for the coming year. In the motor insurance sector, things are going to get considerably tighter and more expensive for customers, as fierce competition has led to a massive and sustained shortfall in cover, which the reinsurers are no longer willing to make up. The severe storms of recent weeks, such as ‘Helen’ and ‘Milton’, provide the reinsurers with another argument as to why premiums will not fall. Consumers in the DACH region (Germany, Austria, Switzerland) only understand this to a limited extent, but in this country it is the major floods that have triggered large claims payments by insurers. This has an impact on art insurance insofar as it involves all-risk covers that include the risk of flooding. The exclusion of the risk does not automatically lead to premium reductions, only to holes in the cover.

Elections were held in the Republic of Moldova yesterday. Incumbent pro-European President Sandu has to make it to the runoff election in two weeks. However, the referendum on the direction of Europe seems to have been rejected by a narrow majority. This time, Russia is said to have openly bought more than 100,000 votes. Moldova shares a long border with Ukraine... . In other countries, Russia's manipulation is carried out via social media – in Moldova, direct vote buying, as in ancient Rome, is enough.

We wish those who are enjoying the autumn holidays a good rest and those who are dedicating themselves to their livelihood through work a lot of fun in the same.

The team of Zilkens Fine Art Insurance Broker GmbH in Solothurn and Cologne