High Net Worth

Insurance for Young ‘Art’ Lovers

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

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].

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