High Net Worth

Insurance for Young ‘Art’ Lovers

Wine collections, jewelry and identify theft also part of the coverage
By: | July 11, 2016 • 4 min read

Editor’s note — Long-time Risk & Insurance contributor Steve Yahn passed away on June 28. Throughout his tenure with this magazine, Steve displayed passion and curiosity for the business segment we cover. He was also a friend whose absence will be felt for years to come. This was his last piece for the magazine. We’ve added links to a few other examples of his recent work at the end of this piece.

— Dan Reynolds, editor-in-chef, Risk & Insurance.


A life style-oriented insurance coverage initially aimed at younger, art loving customers in New York will eventually seek a broader customer base, its sponsors said.


XL Catlin and A.J. Gallagher & Co. in June launched a unique New York-only joint venture aimed at insuring and advising Millennials and new-to-the-scene collectors of all ages.

Called “Five for Five,” the lifestyle-oriented insurance will offer a package of specialized insurance coverage for fine art, jewelry, wine and cyber theft and identity theft on one policy.

Millennials are the fastest-growing consumers in the U.S.” — Ellen Ross, managing director for fine arts and risk management insurance, Arthur.J. Gallagher & Co.

The annual premium for this coverage is $500, with a $500 deductible.

“Millennials are the fastest-growing consumers in the U.S.,” noted New York-based Ellen Ross, managing director for fine arts and risk management insurance at Arthur J. Gallagher & Co.

“They are sophisticated collectors who are actively engaged in the traditional New York art scene, embrace online purchasing and converge on the international art markets and fairs.”

Kyle Amanda Stites, area assistant vice president, fine arts & jewelry practice, Arthur J. Gallagher & Co.

Kyle Amanda Stites, area assistant vice president, fine arts & jewelry practice, Arthur J. Gallagher & Co.

The specialty carrier and the brokerage worked together on many projects over the years and will participate in efforts to attract the target audience. But Gallagher will be primarily responsible for recruiting new clients through its network and is currently accepting submissions.

“To start, the ‘Five for Five’ program is geared toward Millennials and new collectors in the New York City market only,” said Kyle McGrath, New York-based underwriter, fine art & specie at XL Catlin.

“However, as it grows we expect the program’s availability to expand to other U.S. cities with established and emerging art scenes.”

A soft launch of “Five for Five” was hosted by the New York Academy of Art, which brought together 70 or so young artists and new collectors for an evening meet-and-greet gathering. This event, in addition to others to come, was supported by XL Catlin’s Twitter account.


Both McGrath and Ross foresee similar events being held at various museums and art galleries throughout the city, as well as at appropriate professional organizations.

“We are definitely looking at doing these types of events,” said Ross.

“But the goal will be to make them educational and not social.”

Ross noted that XL Catlin’s nationwide “Luxury Lines” program, introduced in August, 2014, was an important part of the inspiration for the “Five for Five” offering.

“There are so many phenomenal young collectors and artists in New York City.” — Jennifer Schipf, fine art & specie senior underwriter, XL Catlin

The existing XL Catlin “Luxury Lines” program offers specialty coverage for fine art and collectibles,  aviation, equine and livestock, yacht and kidnap, ransom and extortion.

“Our idea was to take the ‘Luxury Lines’ program and rejigger it to specifically meet the needs of a new generation of collectors, which is why we added coverage for cyber and identity theft to appeal to their lifestyle,” noted Ross.

“At some point, the new ‘Five for Five’ participants are going to outgrow our product and then they can transition into a more robust ‘Luxury Lines’ program.

“It’s a natural progression for the two products to work together,” added Ross.

“Whenever possible, we would partner on any of these products.”

Jennifer Schipf, senior underwriter, fine art and specie, XL Catlin

Jennifer Schipf, senior underwriter, fine art and specie, XL Catlin

“What we’ve done for ‘Five for Five’ clients, from a marketing standpoint, is to provide them with the opportunity to submit an application for ‘Luxury Lines’ products as well,” noted XL Catlin’s McGrath.

The development of the “Luxury Lines” coverage and XL Catlin’s participation in the “Five for Five” program were both led by New York-based Jennifer Schipf, the company’s fine art & specie senior underwriter, with Kyle McGrath handling the day-to-day activities of the Millennials and new collectors program.

“There are so many phenomenal young collectors and artists in New York City,” observed Schipf.

“Our partnership with A.J. Gallagher and our long-standing relationship with the New York Academy of Art provide the perfect network to link new collectors with artists and provide them with a tool to protect their growing collections.”

Meanwhile, Ellen Ross oversees A.J. Gallagher’s participation in “Five for Five,” with New York-based Kyle Amanda Stites, an area assistant vice president in the fine arts & jewelry practice, handling the day-to-day operations of the new venture.

“We purposely made ‘Five for Five’ a relatively inexpensive policy,” said Stites.

“As young people are investing in these treasures, they may not have the income to shell out a lot of money for premiums. So a $500 premium is very reasonable.

“A lot of times even though the values of the ‘Five for Five’ insured objects may not be that high, there is still a need among this target group for coverage,” noted Stites.


“So it’s really a lifestyle insurance product. We wanted to include coverages that would not be on a simple homeowner’s or renter’s policy.”

The development of the new cyber and identity theft products was spearheaded at XL Catlin by John Coletti, senior vice president, chief underwriting officer cyber, and Elissa Doroff, underwriting and product manager cyber.

Here are some of the other stories Steve Yahn wrote recently for Risk & Insurance:

Heavy Metal in the Water

The resources aligned to remediate acid mine drainage are minimal compared to the cost; up to $72 billion.

Panama Papers Reveal Hidden Art Assets

Leaked documents shed light on mysteries surrounding numerous masterpieces.

Battling a Nasty Bug

Legionella remains a costly and deadly foe in real estate, hospitality and other sectors of the economy.

Investments in Online Insurance Sales Booming

Start-ups and established insurers are focusing on online, direct sales of insurance to small and medium-sized businesses.

Steve Yahn was a freelance writer based in New York. He had more than 40 years of financial reporting and editing experience. Comments can be directed to [email protected]

More from Risk & Insurance

More from Risk & Insurance

4 Companies That Rocked It by Treating Injured Workers as Equals; Not Adversaries

The 2018 Teddy Award winners built their programs around people, not claims, and offer proof that a worker-centric approach is a smarter way to operate.
By: | October 30, 2018 • 3 min read

Across the workers’ compensation industry, the concept of a worker advocacy model has been around for a while, but has only seen notable adoption in recent years.

Even among those not adopting a formal advocacy approach, mindsets are shifting. Formerly claims-centric programs are becoming worker-centric and it’s a win all around: better outcomes; greater productivity; safer, healthier employees and a stronger bottom line.


That’s what you’ll see in this month’s issue of Risk & Insurance® when you read the profiles of the four recipients of the 2018 Theodore Roosevelt Workers’ Compensation and Disability Management Award, sponsored by PMA Companies. These four programs put workers front and center in everything they do.

“We were focused on building up a program with an eye on our partner experience. Cost was at the bottom of the list. Doing a better job by our partners was at the top,” said Steve Legg, director of risk management for Starbucks.

Starbucks put claims reporting in the hands of its partners, an exemplary act of trust. The coffee company also put itself in workers’ shoes to identify and remove points of friction.

That led to a call center run by Starbucks’ TPA and a dedicated telephonic case management team so that partners can speak to a live person without the frustration of ‘phone tag’ and unanswered questions.

“We were focused on building up a program with an eye on our partner experience. Cost was at the bottom of the list. Doing a better job by our partners was at the top.” — Steve Legg, director of risk management, Starbucks

Starbucks also implemented direct deposit for lost-time pay, eliminating stressful wait times for injured partners, and allowing them to focus on healing.

For Starbucks, as for all of the 2018 Teddy Award winners, the approach is netting measurable results. With higher partner satisfaction, it has seen a 50 percent decrease in litigation.

Teddy winner Main Line Health (MLH) adopted worker advocacy in a way that goes far beyond claims.

Employees who identify and report safety hazards can take credit for their actions by sending out a formal “Employee Safety Message” to nearly 11,000 mailboxes across the organization.

“The recognition is pretty cool,” said Steve Besack, system director, claims management and workers’ compensation for the health system.

MLH also takes a non-adversarial approach to workers with repeat injuries, seeing them as a resource for identifying areas of improvement.

“When you look at ‘repeat offenders’ in an unconventional way, they’re a great asset to the program, not a liability,” said Mike Miller, manager, workers’ compensation and employee safety for MLH.

Teddy winner Monmouth County, N.J. utilizes high-tech motion capture technology to reduce the chance of placing new hires in jobs that are likely to hurt them.

Monmouth County also adopted numerous wellness initiatives that help workers manage their weight and improve their wellbeing overall.

“You should see the looks on their faces when their cholesterol is down, they’ve lost weight and their blood sugar is better. We’ve had people lose 30 and 40 pounds,” said William McGuane, the county’s manager of benefits and workers’ compensation.


Do these sound like minor program elements? The math says otherwise: Claims severity has plunged from $5.5 million in 2009 to $1.3 million in 2017.

At the University of Pennsylvania, putting workers first means getting out from behind the desk and finding out what each one of them is tasked with, day in, day out — and looking for ways to make each of those tasks safer.

Regular observations across the sprawling campus have resulted in a phenomenal number of process and equipment changes that seem simple on their own, but in combination have created a substantially safer, healthier campus and improved employee morale.

UPenn’s workers’ comp costs, in the seven-digit figures in 2009, have been virtually cut in half.

Risk & Insurance® is proud to honor the work of these four organizations. We hope their stories inspire other organizations to be true partners with the employees they depend on. &

Michelle Kerr is associate editor of Risk & Insurance. She can be reached at [email protected]