Art insurance is gaining traction in Belgium and Luxembourg as discretionary collectors increasingly prioritise professional protection, clear provenance and fiscal transparency.
That trend is evident in conversations with Laurent Verheyen, chief executive of the Antwerp-based insurance brokerage Jean Verheyen, and Patricia Dillen, deputy director of art and patrimony at the firm. The emergence of new collecting patterns and evolving wealth planning strategies is placing art insurance more firmly on the radar of wealthy individuals and their advisors.
Art and patrimony
Founded in 1919 as a transportation insurance provider, Jean Verheyen today operates in Belgium and Luxembourg, representing AXA XL’s art insurance solutions. Its client base ranges from high-net-worth individuals and corporates to galleries and restoration ateliers.
Art insurance, Verheyen argues, has become an integral part of responsible patrimony management. “We are actually a bit like private insurers,” he told Investment Officer at the recent Tefaf art fair in Maastricht. “We have private bankers, but we are the private insurers.”
Like private banking, the business is built on trust, personalisation and long-term relationships. But unlike regulated asset management, art insurance still operates largely outside public oversight.
Coverage gaps
Standard home insurance policies rarely provide sufficient protection for art. “A work of art is by definition unique and cannot simply be replaced,” Dillen noted. Moreover, accidental damage — such as breakage, one of the most frequent claims — is often not covered.
Repairing damage requires specialised knowledge of restoration and valuation. These services fall well outside the scope of conventional insurance policies. Yet many collectors remain unaware of the risks. For example, someone purchasing a contemporary piece valued at 10,000 euros might dismiss separate insurance as unnecessary.
“That is a misconception,” Dillen said. “The threshold is lower than many people think. Premiums start at 250 euros and cover values up to 100,000 euros.”
AML concerns
The global art market is under scrutiny for its vulnerability to money laundering. The Financial Action Task Force (FATF) has repeatedly warned about the sector’s lack of robust regulation. So far, insurers such as Jean Verheyen apply administrative safeguards. “We ask for purchase invoices, carry out identity checks and, if necessary, send an expert to the location,” said Dillen. “But we remain an insurer.”
The art world lacks a regulatory framework comparable to the banking sector. This can create tension, particularly when insurers must assign value to pieces with uncertain provenance.
“If a work has never been insured, it is difficult to prove its origin afterwards,” Dillen said. A traceable insurance history, she added, can indirectly contribute to both legal and fiscal clarity.
Verheyen agreed. “We always ask for invoices for the works we insure. These provide proof that the artworks were purchased. We do that, but there are no real rules.”
Jean Verheyen works with independent art experts who verify collections on site. “They visit clients at home and check that the artworks actually exist,” said Verheyen.
New collectors
Verheyen also sees a broadening of the collector profile. Art acquisition is no longer the domain of wealthy families alone. A new generation of collectors is emerging, often focused on more affordable pieces and objects with emotional or cultural significance — from sneakers to pop memorabilia.
“One example involved insuring a pair of slippers once owned by Nelson Mandela,” said Dillen. “They were auctioned for a considerable amount.” Valuing such items requires a different approach from traditional art insurance.
Christies in 1995 auctioned Mandela’s shoes, which he wore when he was released from his Robben Island prison, for 4,500 pounds.
This trend reflects how art and collectibles are increasingly used to diversify personal portfolios — alongside real estate, luxury cars and other tangible assets.
Wealth transfer
As wealth planning becomes more structured, so too does the role of art as an asset to be transferred across generations. “Insuring means making sure your heirs don’t inherit an empty shell in the event of damage,” Dillen said.
“Many people think: if I don’t insure, I’ll stay under the radar. But when it comes to selling, the question of provenance comes up again.”
Further reading on Investment Officer:
- Masterpieces or market assets? The fine line between art and commerce
- FATF: art market needs to improve AML-CFT
- Passion investing for professionals: Why wine and art stand out over Lego
- Global art market poised for significant growth