News Releases

PHILADELPHIA--(BUSINESS WIRE)--Wealthy individuals are passionate about collecting jewelry, fine art, wine and other items of significant value, and are planning to spend even more on collections in the coming year. But while such individuals treasure the intrinsic value of their collections, and increasingly view them as an important way to diversify their assets, they often neglect to protect their collections through proper insurance and loss prevention.

These are among the key findings of a new study released today by ACE Private Risk Services, the high net worth personal lines business of the ACE Group. TheACE Private Risk Services Survey on Passionate Investing was conducted by the market research group of FTI Consulting, which polled a panel of wealthy individuals to better understand what and why they collect and how well they protect items of significant value. Survey respondents were limited to individuals from households with more than $5 million of investable assets.

“This survey clearly shows that wealthy households truly enjoy collecting. All but a handful of respondents say they own items that have significant monetary value. More than half are serious collectors in at least one category. And many more consider themselves hobbyists or enthusiasts,” said Gary Raphael, Senior Vice President, Risk Consulting, ACE Private Risk Services. “The reasons why the wealthy collect are also fascinating. An overwhelming majority – nine out of ten – say the beauty or intrinsic value of items is a factor that drives their collecting.

But about three out of four also pointed to the investment value of their collections. For high net worth individuals, collecting is a form of passionate investing.”

Please visit our website to access the full survey report. Other survey highlights include:

• The top three categories of collectibles owned by respondents are jewelry (95 percent), fine art (92 percent) and wine (87 percent). Other popular categories include furniture/antiques and silver and crystal.
• The 2008-2009 financial and economic crisis heightened interest in the investment value of collecting, with about half of survey respondents reporting that the investment diversification value of their collections became somewhat or much more important. Just five percent said the investment value of their collections were somewhat or much less important since the recession.
• Over the next year, most wealthy households (55 percent) plan to increase their spending on collections. One in five respondents said spending will be increased by a great deal. Only four percent plan to pull back on collectibles spending over the next year.
• Many wealthy collectors have gaps in the coverage that protects their valuables. The survey found that nearly 40 percent of collectors do not have all of their collections insured.
• One in three of collectors in the survey insure their home and valuable collections with policies from mass-market insurance carriers, which often lack important coverage features to guard against temporary fluctuations in the market value of collections and breakage of fragile articles.
• As many as two out of five respondents have failed to utilize the resources of a risk consultant who can help make sure collections are stored and displayed in a location and manner where they are least likely to be damaged or stolen. Among respondents with a mass-market insurance policy, 70 percent have failed to do so.

“Financially successful individuals increasingly recognize the investment diversification value of collecting distinctive items. But what also shines through the survey results is the sentimental connection so many have for the items they collect,” Raphael continued. “So it’s striking that so high a proportion of respondents have not fully insured the value of those items. It’s also important to recognize that while insurance can protect you from financial loss, it can never replace a unique or beautiful item with sentimental value. That’s why it’s essential for collectors to take advantage of loss prevention services offered by carriers like ACE Private Risk Services. For it is far better to prevent damage or theft than to be reimbursed for it.”

Survey Methodology

The ACE Private Risk Services Survey on Passionate Investing by Wealthy Households was commissioned by ACE Private Risk Services and conducted by the market research group of FTI Consulting using its proprietary Affluent Dynamics® online marketing research panel of wealthy individuals. The online survey was sent to 936 members of the panel and 168 completed responses were received, which represents an eighteen percent response rate. Survey participants were limited to those panel members who held a minimum of $5 million in investable assets (total assets excluding value of a primary residence).

About ACE Private Risk Services

ACE Private Risk Services is the ACE Group’s high-net-worth personal lines business, which provides specialty coverage for homeowners, automobile, recreational marine, umbrella liability and collections insurance for affluent individuals and families. Additional information can be found at: www.aceprs.com. The ACE Group is a global leader in insurance and reinsurance serving a diverse group of clients. Headed by ACE Limited (NYSE:ACE), a component of the S&P 500 stock index, the ACE Group conducts its business on a worldwide basis with operating subsidiaries in more than 50 countries. Additional information can be found at:www.acegroup.com.