the art of fine art insurance
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The Art of Fine Art Insurance. Robert Read Head of Art and Private Clients, Hiscox Milan, 10 th April 2013. Fine Art. Fine Art. Chris Burden The Flying Steamroller. Fine Art. Edvard Munch The Scream Sotheby’s, May 2012 USD 119,900,000. Fine Art. Fine Art. Ai Weiwei - PowerPoint PPT PresentationTRANSCRIPT
The Art of Fine Art Insurance
Robert Read
Head of Art and Private Clients, Hiscox
Milan, 10th April 2013
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Fine Art
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Fine Art
Chris BurdenThe Flying Steamroller
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Fine Art
Edvard MunchThe Scream
Sotheby’s, May 2012USD 119,900,000
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Fine Art
Ai WeiweiSunflower seeds (Installation for Tate Modern Turbine Hall)
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Fine Art
Tracey EminMy Bed
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Fine Art
Kylie Minogue in ‘Dancing Queen’ corset and tiara
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Fine Art
‘Dancing Queen’ corset and tiara at ‘Kylie: the Exhibition’ at London’s Victoria & Albert Museum
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The Art Market Volatility
Source: Artnet
The Art Market Old Masters
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The Art Market Modern Art
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The Art Market Contemporary Art
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Underwriting
Huge values
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Variety+
No rating guide
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Three Basic Categories
• Private Collections
• Museums & Exhibitions
• Dealers
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Private Collections
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Museums & Exhibitions
Moving Rembrandt’s “The Militia Company of Frans Banning Cocq & William van Ruytenburch” at the Rijksmuseum
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Dealers
DealersA loss is as good as a sale?
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Dealers
Salander O’Reilly• “The Enron of the Artworld” – Herald Tribune
• “Fifteen investors claim they were bilked by an Upper East Side art gallery. It’s a ‘Ponzi scheme,’ alleges one” - New York Observer
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Fairs & Storage Facilities
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Breakdown of Losses
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Criminal Activity
• 2008: Pictures worth a reported $160m stolen in a day light armed robbery.
• Two of the four stolen pictures, a Monet and a van Gogh, recovered after they were discovered in the back of an unlocked Peugot in the carpark of the local mental hospital.
• Two pictures, by Degas and Cezanne, are still missing.
• The collection is believed to have been uninsured.
CezanneThe Boy in the Red Vest
Emil Buehrle Museum, Zurich
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Criminal Activity
The Isabella Stewart Gardner Museum, Boston, USA
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Stolen
RembrandtChrist in the Storm on the Lake of Galilee
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Fire
Uppark, East Sussex, 1989
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Fire
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Fire
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Fire
MomartMay 24th 2004
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Professional Indemnity
• 17th January 2008 Lawrences auctioneers 19th C. French Claret Jug Estimate: £100 – 200
• Sold: £220,000
•Sale subsequently annulled and consignor sent it to Christies.
• ‘Discovered’ to be 11th C. Fatamid rock crystal ewer
• Sold £3,243,000 Christies 7th October 2008
• Valued by Sotheby’s at £20,000,000 25th March 2010
Superstorm Sandy
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New York, October 2012
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Conclusion
• Art is complex
• Art needs a specialist broker
• Art needs a specialist underwriter
Raul Ortega168 blinds of the Hiscox building opened or closed to create form