The art of collecting

During times of financial turmoil, people tend to retreat to safer havens – and art collectors are no exception. Gone are the days when they would race to snap up new artists’ work for top prices. The mantra now seems to be ‘tried and tested’.

Elliot McDonald, Hiscox’s art curator, says that contemporary art is one of the main areas of the market in which there has been a drop-off in interest. “The race to buy the rising stars of the past five to ten years is over,” he says. “The key is to look for artists who will be around in another ten years’ time.”

It follows, then, that serious collectors with serious money are turning to the Old Masters and other well-regarded names. At a Sotheby’s sale in London in July, for example, a 1628 Van Dyck portrait sold for more than £2 million – about £500,000 more than the top estimate. This marks a change from recent years, when the trend was very much towards contemporary art and when the Old Masters, such as Van Dyck, were seen as unfashionable.

Elliot says that, these days, quality is king – which is typical of investors’ behaviour during recessions. “People are going for artists who have been well-regarded through thick and thin,” he says. “If you have a very good Andy Warhol, you will still get a very good price for it. But some modern pieces you would have got great money for three years ago, you won’t get much for now.”

This insider knowledge is part of what sets Hiscox’s specialist art insurance service apart. Robert Korzinek, Fine Art Underwriter, says that the product’s key selling point is Hiscox’s proximity to the art world. “We’re passionate about art,” he says. “We insure, collect, sponsor and promote it.”

The product’s breadth, flexibility and geographical reach are also attractive to collectors. “They can be covered from the moment the hammer comes down at auction or they walk out of the gallery with their purchase,” says Robert. “Plus, our contacts in the art world mean that we can deal with claims discreetly, sensitively and speedily.

For more information about Hiscox’s specialist art insurance service, contact your local underwriter.